Israel Airstrikes on Iran Trigger Global Energy Price Concerns

The recent Israeli airstrikes on Iran have triggered a notable increase in global oil prices, raising concerns over economic impacts worldwide. Analysts indicate that while the immediate risk of a significant U.S. economic downturn remains limited, heightened tensions could escalate oil prices to $80-$120 per barrel, potentially causing inflationary pressures and complicating central banks' monetary policies. In the U.S., experts warn of moderate gas price increases, particularly in regions like mid-Michigan, though prices are expected to remain below previous highs. Europe faces similar concerns, with fears that disruptions, such as a potential blockade of the Strait of Hormuz by Iran, could exacerbate inflation and energy costs. Meanwhile, countries like Bangladesh, heavily reliant on energy imports, have prepared for short-term stability but remain vulnerable to rising liquefied natural gas (LNG) prices due to dependence on volatile spot markets. Overall, the conflict's economic impact hinges on its escalation level, with the most severe scenarios involving broader disruptions to oil supply routes and global markets.