Oil Surge Is Latest Headwind for Tariff-Rattled Global Economy

For a global economy that’s been buffeted by trade tensions all year, lower energy prices were one of the few positives. If a surge in the price of oil after Israel carried out airstrikes against targets in Iran is sustained, that tailwind will switch to become yet another headwind.

Oil prices advanced as much as 13% in the aftermath of the attack. JPMorgan has previously warned prices could spike to $130 a barrel in the “severe outcome” of a blockade to flows via the Strait of Hormuz or a broader conflagration in the Middle East.