Oil shock revives inflation fears as US-Iran fighting strains supply

Renewed fighting involving the United States and Iran is keeping oil prices elevated and reviving fears of a broader inflation shock, even as crude eased in early Friday trading. BlackRock estimated the conflict could add about 0.8 percentage points to global headline inflation, while the International Energy Agency warned that threats to the Strait of Hormuz and Bab el-Mandeb are deepening uncertainty over energy supplies. IEA chief Fatih Birol said markets still have buffers, including strategic reserves and alternative export routes from Saudi Arabia and the United Arab Emirates. But he cautioned that tighter refined-fuel supplies and prolonged disruption to Gulf exports would hit oil and LNG importers, including Europe as it rebuilds gas storage for winter.