US economy slowed with rising inflation before war. Now, Persian Gulf conflicts threaten global commodity supplies. This could cause a severe worldwide economic crisis, impacting essential resources like oil and gas.

Even before recent global conflicts, the US economy showed signs of slowing, coupled with steadily rising inflation, making everyday goods more expensive. The emergence of new geopolitical tensions, especially affecting the Persian Gulf, has added immense pressure. This region is a vital source, supplying a significant portion (20-50%) of global crude oil, liquefied petroleum gases, and natural gas. Disruptions here could trigger a severe worldwide economic crisis, impacting commodity prices and potentially leading to stagflation globally. This situation requires urgent attention to mitigate widespread economic fallout.

Original Author: David Stockman | Source: Brownstone Institute