The surge in energy prices and global borrowing costs triggered by the ongoing conflict in the Middle East is increasing the risk of a damaging combination of persistent inflation and slower economic growth, according to a report by Reuters.
Global markets have so far remained relatively resilient, with stocks trading near record highs and economic activity holding up, helped in part by heavy investment in artificial intelligence. However, rising oil and gas prices, alongside a sharp increase in government bond yields, are beginning to expose vulnerabilities across financial markets.
