Iran War's Energy Shock: Stagflation Trap for EMs

The Iran war's escalation unleashes an energy shock ravaging emerging markets, widening growth gaps with advanced economies and igniting divergent central bank paths. IMF and BIS analyses reveal stagflation risks as supply disruptions entrench inflation, testing global policy resilience amid trade fragmentation. Unmitigated, this could shave 0.5-1% off world growth by 2027.