Major central banks are watching the situation closely. The Federal Reserve, Bank of England and European Central Bank all decided to keep interest rates unchanged for now.
However, officials have warned that higher energy costs could push inflation higher in the coming months. In Japan, the central bank also kept rates steady but warned about rising prices due to costly fuel.
Meanwhile, Australia recently raised its interest rates, pointing to sharply higher fuel costs.
Economic growth concerns increase
Experts say the biggest risk now is slower global growth.
Higher energy costs reduce spending power. Businesses also face higher costs, which can lead to lower production and fewer jobs.
One analyst said investors are becoming more worried as the conflict continues and spreads.
There are also fears that the longer the war lasts, the more damage it will cause to the global economy.
Food security warning issued
The crisis is not just about energy. Ngozi Okonjo-Iweala, head of the World Trade Organization, warned that the conflict could affect global food supplies.
She said higher energy prices make fertilisers more expensive. This can reduce farming activity and lower food production.
Shipping problems could also delay food supplies reaching countries that need them.
She stressed the need to keep global trade open so food can move freely.
-
As AI Floods the Internet With Synthetic Content, Trust Will Become the New Digital Currency
-
Dhurandhar 2 Effect! Pawan Kalyan's Ustaad Bhagat Singh Collects Less Than Half Of They Call Him OG On Day 1
-
Dhurandhar The Revenge Box Office Collection Day 1: Ranveer Singh Starrer Becomes ₹100 Crore Grosser On Opening Day
-
Uttar Pradesh Students Land Plum Jobs in Japan; CM Yogi's Vision for Global Employment Bears Fruit
-
LDF Faces Toughest Challenge Yet As UDF Gains Ground And NDA Threatens Kerala's Bipolar Tradition
