The supply shock waves from the U.S. and Israel’s war in Iran are spreading across the global economy, raising concerns about an inflation hit to companies and consumers that will require policymakers to raise borrowing costs.
While U.S. President Donald Trump’s chaotic tariff campaign took months to filter through supply chains, the spiking prices for oil, gas, aluminum, fertilizers and chemicals since the bombing of Tehran began on Feb. 28 have rapidly been felt by factory managers, farmers and freight carriers.
Now the effects are reaching industries that might’ve seemed insulated from the fallout, or too far away to feel it. And that’s unlikely to be reversed soon even as Trump signaled Monday that a potential ceasefire was possible.