Iran war revives stagflation dangers for global economy| Gulf Times
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GCC CONTEXT
Escalating geopolitical tensions in the Gulf region have historically created supply-side shocks to crude oil markets, potentially triggering stagflation dynamics—a combination of rising inflation and economic slowdown—that affect both regional hydrocarbon exporters and global commodity-dependent economies. GCC states, while beneficiaries of elevated oil prices during crisis periods, face offsetting pressures from currency pegs to the US dollar, imported inflation, and demand weakness in key trading partners, creating complex transmission channels between regional security events and domestic macroeconomic conditions. Historical precedent from the 1970s oil embargoes and 1990s Gulf conflicts illustrates how such episodes reshape energy price volatility, fiscal dynamics in petrostates, and
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