● Gas Field Attack, Oil Price Surge

The Impact of Middle East War Escalation on the Global Economy: A Summary of Key Issues such as Inflation, International Oil Prices, and Interest Rate Hikes

1. Outbreak of War in the Middle East and Increased Geopolitical Tensions

From the early stages of the war, the fierce conflict between Israel and Iran has shocked the international community.
The world’s largest gas pipeline, South Pars, was attacked, directly hitting energy infrastructure.
As the possibility of a full-scale war increases, the instability of major oil transportation routes such as the Strait of Hormuz is highlighted.

2. Energy Infrastructure Attacks and International Oil Price Instability

Military conflicts in Middle Eastern oil-producing countries, including Israel and Iran, have led to attacks on energy facilities.
Attacks on key infrastructure such as oil storage and gas pipelines risk causing significant damage to the global energy supply.
International oil prices are rising and falling sharply with the escalation of the war, and there are concerns that they could soar to $100-120.

3. Inflation and Changes in Interest Rate Policy

As in past cases of oil shocks and hyperinflation, rising energy prices due to the outbreak of war increase inflationary pressure.
If inflation accelerates, the central bank will inevitably raise interest rates, which will negatively affect the stock market and financial markets.
Global economic instability can also adversely affect the real economy, such as trade and investment contraction.

4. War Escalation Scenarios and Economic Side Effects

Paralysis of maritime oil transportation networks due to the closure of the Strait of Hormuz could lead to stagflation.
As uncertainty increases, investors prefer safe assets over risky assets, which shrinks the overall investment environment.
Reduced corporate investment and sluggish consumption lead to economic recession, raising concerns about long-term economic slowdown.

5. Response Strategies and Future Prospects

In an unstable geopolitical risk environment, caution is needed regarding various economic variables such as the Middle East war, inflation, international oil prices, and interest rate hikes.
A preference for safe assets and reorganization of investment strategies are required, and attention should be paid to changes in tightening or easing policies of governments and central banks in each country.
Economic experts hope that the war will not escalate and that peace will be established quickly to resolve uncertainty.

< Summary >

A summary of the impact of the Middle East war escalation on the global economy. Explains key variables such as energy infrastructure attacks due to the outbreak of war, fluctuations in international oil prices, and concerns about inflation and interest rate hikes. Uncertainty due to geopolitical tensions can lead to a contraction of investment and the real economy, so a preference for safe assets and strategies to respond to market changes are needed.

This article organizes war and economic development scenarios in chronological order based on key keywords such as the global economy, Middle East war, inflation, international oil prices, and interest rate hikes.

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