No Way Back? - Joe Blogs
The situation in the Middle East is escalating rapidly and the consequences are now spreading far beyond the region.
Iran has stepped up its attacks, targeting key oil and gas producers including Saudi Arabia, the UAE and Kuwait, and has now struck major energy infrastructure for the first time. At the same time, the Strait of Hormuz one of the most important shipping routes in the world remains heavily restricted.
Oil prices are holding above $100 per barrel, driving up costs across the global economy and increasing pressure on businesses, consumers and central banks.
Despite this, stock markets continue to rise raising serious questions about whether investors are underestimating the risks.
Meanwhile, tensions are growing between the United States and its allies, with Donald Trump warning of consequences for NATO after support was refused for securing the Strait of Hormuz.
With rising energy prices, geopolitical fractures and increasing uncertainty, this situation is developing into something much bigger than a regional conflict.