Iran-US War Ignites Global Stagflation Shock, Reversing Central Bank Easing

The Iran-US war in the Middle East has triggered a stagflationary shock, forcing central banks from emerging markets and Europe to abandon easing and tighten policy despite collapsing growth. With oil prices soaring above $120, second-round inflation effects are now embedded, making unwinding prices nearly impossible and threatening a global hard pivot to restrictive monetary regimes.