Global Markets Brace for Middle East Conflict Ripple Effect

Economists and market strategists are closely monitoring the Middle East conflict for its potential ripple effects on global markets. The situation, which may draw in other countries and drive up oil prices, has already led to weakness in stocks and increased demand for safehaven assets. If the conflict expands, oil prices could rise further, causing inflation and interest rates to accelerate worldwide. However, the US may be an exception as foreign investors seek it as a safehaven, potentially leading to lower interest rates and a stronger dollar. The conflict's impact on other fuels, such as natural gas, is also a concern. Rising oil prices are unlikely to significantly affect US gas prices or consumer spending in the near term.