Stagflation risks stacking up as Iran war enters third month

By Alun John, Yoruk Bahceli and Dhara Ranasinghe LONDON, April 30 (Reuters) - Financial markets are finding it harder to look past the rising economic costs of the Iran war as the continued closure of the Strait of Hormuz prolongs the world’s biggest-ever disruption to energy supplies. Two months into the conflict, the global economy faces a toxic mix of slowing growth and high inflation - stagflation. Even as tech stocks lift world shares, analysts warn that the longer Hormuz remains shut, the greater the recession risk for energy-importing regions. "The probability of a recession in Europe, the UK, and parts of Asia, is higher than is priced into equity markets," said RBC BlueBay’s head of market strategy Mike Bell.

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