The six-month conflict between the US and Iran has had multiple impacts; the IMF expects global inflation to rise to 4.7% by 2026.

The prolonged conflict between the US and Iran has lasted for half a year, bringing multidimensional impacts to the Middle East region and the world at large. Analysts point out that this conflict has not only triggered energy and shipping crises and dragged down global economic growth, but also severely impacted the structure of the Middle East. Firstly, the global energy supply has been severely disrupted. The conflict has had a huge impact on shipping in the world’s “energy choke point”, the Strait of Hormuz. The average daily number of merchant vessels passing through the strait has dropped from 130–140 before the war to single digits, a decline of more than 90%. The blockage of the strait has significantly pushed up international oil prices, which at one point broke through $126 per barrel and are currently still maintained at a relatively high level of around $88, more than 20% higher than pre-war prices. Secondly, rising energy prices are undermining the efforts of major economies to curb inflation. In July, the US consumer price index rose 3.4% year-on-year, with gasoline prices up 24.6%. In the Eurozone and the UK, the inflation rate in July rose to 2.9%. The International Monetary Fund expects that, due to rising energy and food prices, global inflation will reach 4.7% by 2026. The World Bank warns that if energy supply disruptions persist, global economic growth this year could be as low as 1.3%. (CCTV Finance)