Iran conflict sparks global oil shock and inflation fears

Analysts warn that while initial market reactions to U.S.-Israeli actions against Iran appeared muted, oil prices have surged toward $120 a barrel, threatening higher inflation and weaker consumer spending as the Strait of Hormuz risks disruption of roughly 20% of global oil supply. Global stocks slid and recession risk metrics edged up, with the U.S. economy—though resilient and a net oil exporter—facing higher daily costs for Americans if energy prices stay elevated, complicating policy and politics.