The combination of real supply‑disruption risk and large‑scale emergency stock releases has produced a whiplash result in oil and, by extension, in inflation expectations. Brent remains roughly 20% higher than it was when hostilities began in late February, even after drawing back from early‑week peaks.
And while a Bureau of Labor Stats report released on Wednesday showed that inflation held constant at 2.4% last month, that marks the last information set from the duration before the United States released its war on Iran on February 28.
Soaring oil costs have actually triggered worries of an inflation spike, an advancement that would likely put Federal reserve interest rate cuts on the backburner and might even bring a hike into view.
The conflict has also sustained concerns of international stagflation: increasing inflation even while economies stall or fall back in 2026.
Still, some excellent news for the US housing sector: home loan consumers got rid of issues about the intensifying conflict recently as home loan applications increased by 3.2% compared to the week in the past, according to the Home loan Bankers Association (MBA).