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ME Conflict resulting Global Inflation ?

Even after two years, Europe continues to suffer from the consequences of the conflict in the region. The Middle East is becoming the second region that is at risk of a larger conflict. It has been a few months since Israel launched its operation in Gaza against Hamas in response to their Oct 7th act.

But as Israel gains momentum in the conflict the goal or the spread of the conflict is rising. The first escalation resulted in Red Sea attacks that resulted in many ships avoiding the Suez Canal. This has not only increased prices and time of logistics but also resulted in supply chain pressure to return.

The second and most likely next escalation might be in Southern Gaza as Israel prepares operations in Radha city. This being close to Egypt's border has led to a rising worry for Middle Eastern countries as Saudi and Egypt have given a stern warning against it.

If it does get escalated in the next few days or weeks then it would become a major concern throughout the world and might result in energy prices and supply chain pressure rising further.

As these movements put pressure on companies and governments there might be another round of rise in global inflation that would delay the rate cuts which are expected to happen in the second half of this year.

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