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Fed Officials Warn Iran War Could Cause a Longer Inflation Shock in US Markets
Economy
Published on 7 May 2026
Oil and supply shocks may keep inflation higher longer
US Federal Reserve officials are growing concerned that the US backed war with Iran could trigger a prolonged inflation shock. They cite elevated oil prices and supply chain disruptions as persistent risks, raising fears that inflation may not cool quickly. Markets now watch for the possibility of additional interest rate hikes and a longer stretch of high prices as shocks compound.
- Fed officials fear a prolonged inflation shock linked to Iran war
- Higher oil prices are seen as a durable inflation driver
- Supply chain disruptions could keep costs elevated longer
- Risk of further rate hikes if inflation stays sticky
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times