Central Banks Sound Stagflation Alarm as Iran War Jolts Global Energy Markets

• Top central banks warn of rising stagflation risks due to escalating Iran war disrupting energy infrastructure and driving oil prices.
• Policymakers from US, Europe, Japan, Canada, and Britain held interest rates steady but flagged mounting inflationary pressures from the energy shock.
• US Federal Reserve Chair Jerome Powell noted the global economy faces an "accumulation of shocks," with higher energy prices pushing up inflation.
• Brent crude briefly surged past $119 a barrel, and natural gas prices spiked, fueling fears of a renewed inflation cycle.
• Central bankers face the dilemma of containing inflation without stifling fragile economic growth, reminiscent of the 2022 commodity shock.