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Middle East escalation could trigger energy shock that fuels inflation, World Bank warns
The outbreak of a major conflict in the Middle East could trigger an energy shock that pushes oil prices above $100 a barrel, fuels inflation and results in higher interest rates for longer, the World Bank warned Thursday. Tensions in the Middle East reached a boiling point earlier this month as OPEC member Iran and Israel appeared on the brink of war, raising fears that crude oil supplies could be disrupted as a consequence. The governments in Jerusalem and Tehran appear to have decided against escalation after exchanging direct strikes on each other’s territory for the first time. Oil prices have pulled back ... (full story)