Economists say soaring global inflation could negatively affect food prices, oil, and petrol prices due to the Middle East conflict. Economist Dr Iraj Abedian says the impact on prices will continue to go up dramatically as the global economy risks suffering a renewed inflation shock.
Iran, which is a major oil producer, launched its unprecedented attack on Israel over the weekend and the Israeli military has vowed to respond to the attack .
99% of the drones launched by Iran were intercepted:Abedian says if the war between Israel and Iran commences, it will prolong the negative impact on global economy.
"Now weve got effectively three compounding effects, the disruption in the global logistics coming from the pandemic, then reinforced by the Russia and Ukraine war and with that you refer to the price of food. And of course, if the Israeli and Iranian war goes to the next stage, we can potentially see a total stoppage of up to 40% of the global oil and then theres no substitute for that. So, the prices, inflation and interest rates are going to stay high for longer."
