Middle East War Ignites Stagflation, Shattering Global Market Stability

The Middle East conflict has reignited stagflationary fears, forcing a sharp repricing of inflation expectations and pushing bond yields to multi-decade highs. Emerging markets face a brutal double threat of rising inflation and contracting growth, while central banks globally prioritize inflation control over economic expansion. This geopolitical shockmarks a structural shift from cautious stability to an uncertain, inflation-sensitive global economy.