In the UK, anxiety over the crisis after Iran’s missile strike on Israel drives down UK shares
Abadan oil refinery in south-west Iran. Previous wars in the Middle East have led to a sharp increase in oil prices.Abadan oil refinery in south-west Iran. Previous wars in the Middle East have led to a sharp increase in oil prices.risks leading to higher oil prices, a reversal of the recent fall in inflation and a puncturing of the optimistic mood in financial markets, the International Monetary Fund has warned.
Gourinchas said: “The increased inflation that would come from higher energy prices would trigger a response from central banks that would tighten interest rates in order to secure inflation coming back to target, and that would weigh down on activity. Tobias Adrian, the IMF’s financial counsellor, said at the release of the GFSR: “We are very concerned about developments in the Middle East.”Adrian said there had been a fall in share prices even before Iran launched its missile strikes on Israel, and while oil prices are stable there is a risk that they could rise.
“A sense of optimism has pervaded financial markets in recent months, amid investor confidence that the fight against inflation is entering its ‘last mile’ and that central banks will ease monetary policy in the coming months.However, he said there were “likely to be bumps along this last mile” and that geopolitical tensions could “weigh” on investor sentiment.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Middle East crisis live: Hamas emboldened to reject ceasefire proposal after UN vote, Israel claimsIsraeli foreign minister says vote told Hamas ‘you don’t have to hurry’ as group rejects latest deal offer
Read more »
Middle East crisis live: Israel says 170 Gaza gunmen killed in hospital raidTroops have been combing through the al-Shifa hospital in Gaza City since Monday
Read more »
Ukraine sends aid to Middle East, Africa in soft-power move against RussiaEven as the war-torn nation defends its homeland against the Russian invasion, it is delivering major shipments to vulnerable populations.
Read more »
Ukrainian grain sent to Middle East, Asia in soft-power move against RussiaEven as the war-torn nation defends its homeland against the Russian invasion, it is delivering major shipments to vulnerable populations.
Read more »
Middle East crisis live: Marwan Issa, key Hamas organiser behind 7 October attacks, killed, says USWhite House national security adviser Jake Sullivan said Issa had been killed last week in an Israeli operation
Read more »