IMF: US Military Operations Against Iran Risk Driving Global Inflation

Washington (ANTARA) - US and Israeli military operations against Iran could potentially increase global inflation if the conflict drags on, said International Monetary Fund (IMF) spokesperson Julie Kozack on Thursday.

“If prolonged, higher energy prices will drive up core inflation,” Kozack stated during a press briefing.

According to IMF calculations, a 10 percent rise in oil prices over the long term could increase global inflation by 40 basis points and reduce global output by 0.1 to 0.2 percent, she added.

On 28 February, the US and Israel launched attacks on several targets in Iran, including in Tehran, causing damage and civilian casualties.

Iran subsequently responded by attacking Israeli territory as well as US military facilities in the Middle East.

The escalation around Iran has led to a de facto halt in traffic through the Strait of Hormuz, the main shipping route for oil and liquefied natural gas from Persian Gulf countries to global markets, impacting oil exports and production in the region.

As part of efforts to curb oil prices, the US granted sanctions exemptions for India’s purchases of Russian oil loaded onto tankers before 5 March, and subsequently for all Russian oil and oil products loaded onto ships since 12 March.