Crude oil prices remain elevated as escalating tensions between the United States and Iran reignite supply concerns across global energy markets.
The persistent geopolitical friction has kept a lid on risk appetite, with investors closely monitoring the durability of any potential ceasefire agreements in the region.
The sustained pressure on oil prices is reshaping the macroeconomic narrative, bringing inflation fears back into sharp focus.
Analysts warn that prolonged energy cost spikes could undermine recent progress in cooling price growth, particularly in the United States where consumer sensitivity to fuel costs remains high.
BlackRock and other major asset managers are highlighting the risk that energy-driven inflation could force central banks to maintain restrictive policy for longer than previously anticipated.
This repricing comes at a sensitive juncture for global markets.