The Iran war has reverberated through energy and financial markets, rekindling inflation concerns and risks to economic growth. Unlike last year, when the source of these worries was President Donald Trump’s tariffs, the concerns now are based on fears that sharply higher oil prices could become entrenched.
Any extended period of high energy costs threatens tipping the economy into a recession while also keeping upward pressure on inflation, a rare economic predicament known as stagflation.
