Stagflation-risks and dangers

With the US-Iran war still ongoing, the world watches with bated breath as to the eventual outcome.

- 

However, the world economy has suffered setbacks that will definitely see a real risk of stagflation.

The closure of the Strait of Hormuz and the bombing of oil refineries has sent oil prices spiraling into the stratosphere, and with it, the rest of the economy will start an upward trend in the prices of essential commodities resulting in inflation.

Already, we are seeing a decrease in economic activity as people pause their spending to await further developments. Inflation will definitely set in, and the with further erosion of purchasing power, high unemployment and recession will ensue, resulting in stagflation (stagnant economy+inflation).