The U.S. also boarded another tanker it said was involved in smuggling Iranian oil, as the intensifying maritime standoff leaves a crucial global trade route at an effective standstill.
The global economy is facing ever more tangible strains from the energy shock triggered by the Iran war as factories grapple with soaring production costs and activity weakens even in services sectors, major surveys showed today.
While much of the worldâs economy has shown resilience in the face of the worst disruption to energy supplies in modern times, the knock-on effects of the conflict are starting to push up inflation while raising alarm bells about food supplies and prompting downgrades to economic growth.
This week has already seen a string of downbeat business and consumer morale readings and cautious outlooks from top listed companies. The closely watched set of S&P Global surveys of purchasing managers released today showed worse to come.
They pointed to the 21 countries of the euro zone as among the hardest hit.
âThe euro zone is facing deepening economic woes from the war in the Middle East,â said Chris Williamson, chief business economist at S&P Global. âIncreasingly widespread supply shortages meanwhile threaten to dampen growth further while adding more upward pressure to prices in the coming weeks.â
There are a few stark outliers. The global surge in AI investment continues to benefit technology activity while the sheer volatility on world markets is a boon to trading firms.
With no clear prospect as to how the conflict will end, the future impact on the worldâs economy remains dependent on how long it continues to logjam shipping through the Strait of Hormuz.
The Israeli military said Hezbollah members launched an anti-tank missile toward IDF soldiers operating in southern Lebanon earlier today.
It said the anti-tank missile landed adjacent to IDF soldiers, but no one was injured in the incident, which it said was a violation of the current ceasefire agreed between Israel and Lebanon.
Source: Drudge Report
