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Brown Brothers Harriman (BBH) analyst Elias Haddad noted that recent tanker attacks near Iraq and Dubai pushed Brent crude oil prices above $100 per barrel, reigniting stagflation fears. This development pressured global bonds and equities while strengthening the US dollar as investors sought safe-haven assets. The supply disruption highlights vulnerabilities in Middle East energy infrastructure, with potential ripple effects on global markets. The dollar's recent strength is tied to oil's role as a key inflation driver. Higher energy costs exacerbate stagflation risks, prompting central banks to adopt tighter monetary policies. Traders are closely monitoring OPEC+ decisions and geopolitical tensions in the Gulf, as these factors could further influence oil prices and currency movements. For Gulf investors, the situation underscores the dual impact of oil prices on both energy exports and import costs. Regional markets may face volatility as supply chain risks persist. Key watchpoints include OPEC+ production adjustments, US-Iran relations, and the resilience of global demand amid economic slowdowns.
