Qatar Energy's operating facilities on March 3, 2026 in Ras Laffan Industrial City, Qatar.
Photographer: Getty ImagesThe Big Take
Iran War Oil Shock Threatens to Unleash Wave of Global Inflation
Sustained high oil prices would boost inflation and slow growth, putting central banks in a tough spot.
President Donald Trump’s war with Iran threatens to deal a severe blow to a global economy still grappling with the impact of his historic tariff hike.
For Europe, sustained higher energy prices would take the economy to the brink of recession. For the US, they would place the Federal Reserve in an impossible position — stuck between a war that pushes inflation higher and a president demanding that interest rates come down. For China, the end of discounted Iranian oil imports adds to strain from Trump’s tariffs and a real estate collapse.