Charting the Global Economy Inflation Mounts as War Drags on

The ongoing war in Iran is a major geopolitical event that directly impacts global energy supply, particularly oil and gas. This creates scarcity in energy commodities, driving up prices and exacerbating inflation worldwide. The US, Europe, UK, Japan, and China all feel the effects through higher energy costs, which feed into consumer prices and central bank policy. The channel is primarily input_cost (energy) and supply_shortage (Iranian oil/gas). The impact is global, with specific regional effects: US inflation, ECB rate hikes, UK bond yield surge, Japan energy price pass-through, China factory price increases. Russia's economy contraction adds to the complex picture.