Stagflation fears rise as escalating Iranian war drives up oil price again – business live

## Summary
Hopes that the market turmoil in the energy market might have abated are fading rapidly today, as Iran escalates its attacks on infrastructure and transport networks across the Gulf. These widespread Iranian attacks on Middle Eastern energy facilities drove Brent crude over the $100 a barrel mark again in early today, hitting $101.59 a barrel; it’s now slipped back to $97.50 a barrel, up 6% today. Jim Reid, market strategist at Deutsche Bank , says investors are facing the risk of a “broader stagflationary shock”: double quotation mark From a market perspective, the problem is that investors are increasingly pricing in a more protracted conflict that causes extensive economic damage. Indeed, we know that investors are pricing in the longer scenarios, because the 6-month Brent future is also up +3.06% this morning to $82.97/bbl , and with each passing day it gets harder to argue that the disruption to shipping and energy infrastructure will only prove temporary.

## Article Content
Good morning and welcome to our rolling coverage of business, the financial markets and the world economy.
Hopes that the market turmoil in the energy market might have abated are fading rapidly today, as Iran escalates its attacks on infrastructure and transport networks across the Gulf.
The oil price has jumped after two tankers were set ablaze two tankers in Iraqi waters early this morning. The attacks came after senior Iranian officials warned of a long “war of attrition” that would threaten chaos in the global economy.
There are also reports that Oman’s key oil export terminal has been evacuated.
These widespread Iranian attacks on Middle Eastern energy facilities drove Brent crude over the $100 a barrel mark again in early today, hitting $101.59 a barrel; it’s now slipped back to $97.50 a barrel, up 6% today.
The jump in oil prices is fanning fears that the global economy could be tipped into stagflation – the unpleasant combination of rising prices and stagnant growth.
Brent crude pops back toward $100
because, well, hard to say why it wasn’t there already
pic.twitter.com/SGjbVYODt2
— Rory Johnston (@Rory_Johnston)
March 12, 2026
Yesterday’s announcement of
the largest release of government reserves in history
has not calmed fears of major supply shortages if travel through the strait of Hormuz is not restored.
Jim Reid,
market strategist at
Deutsche
Bank
, says investors are facing the risk of a “broader stagflationary shock”:
double quotation mark
From a market perspective, the problem is that investors are increasingly pricing in a more protracted conflict that causes extensive economic damage. After all, with no concrete signs of de-escalation yet, that’s keeping oil prices elevated, and raising the risk of a broader stagflationary shock. Indeed, we know that investors are pricing in the longer scenarios, because the
6-month Brent future is also up +3.06% this morning to $82.97/bbl
, and with each passing day it gets harder to argue that the disruption to shipping and energy infrastructure will only prove temporary.
Daniel Casali,
chief investment strategist at UK wealth manager
Evelyn Partners,
warns that geopolitics, rather than fundamentals, are increasingly driving markets, adding:
double quotation mark
The conflict is potentially a stagflationary shock the severity of which depends on its length and export volumes while the SoH remains closed.
Oil inventories buy time, but as they erode, risks of higher energy prices, rising inflation and market volatility increase.
The agenda
9am GMT: IEA
Oil
Market Report
9.30am GMT: Governor of the Bank of England Andrew Bailey giving opening remarks at the Financial Stability Board
11am GMT: Turkey interest rate decision
12.30pm GMT: US weekly jobless claims

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## Expert Analysis

### Merits
N/A

### Areas for Consideration
- Jim Reid, market strategist at Deutsche Bank , says investors are facing the risk of a “broader stagflationary shock”: double quotation mark From a market perspective, the problem is that investors are increasingly pricing in a more protracted conflict that causes extensive economic damage.
- After all, with no concrete signs of de-escalation yet, that’s keeping oil prices elevated, and raising the risk of a broader stagflationary shock.

### Implications
- Hopes that the market turmoil in the energy market might have abated are fading rapidly today, as Iran escalates its attacks on infrastructure and transport networks across the Gulf.
- The jump in oil prices is fanning fears that the global economy could be tipped into stagflation – the unpleasant combination of rising prices and stagnant growth.
- Indeed, we know that investors are pricing in the longer scenarios, because the 6-month Brent future is also up +3.06% this morning to $82.97/bbl , and with each passing day it gets harder to argue that the disruption to shipping and energy infrastructure will only prove temporary.

### Expert Commentary
This article covers market, oil, energy topics. Areas of concern are also raised. Readability: Flesch-Kincaid grade 0.0. Word count: 436.