“Europe in particular is reliant on LNG exports from Qatar, as countries have been weaning themselves off dependence on Russia. The conflict is not only highly damaging for economies in the region, with tourism and business activity hit, but the knock-on effects of higher energy prices will have toxic repercussions worldwide,” Streeter wrote.
“Food prices, which had been easing, risk rising again as freight costs increase and fertiliser exports from the Middle East are disrupted. There are also concerns about helium supplies being stranded, a key component in semiconductor manufacturing, which could lead to delays in producing electronic goods and even cars.
“The spectre of stagflation is hovering, with the combination of rising prices and stagnating growth posing a real threat. High energy costs are set to dampen consumer spending and curb business investment as both grapple with elevated bills and ongoing uncertainty.”