Why an Iran war inflation shock could wreck global economic recovery

Central bankers and economists warn prolonged conflict could raise retail prices and rip up growth forecasts

• Heather Stewart: UK must be prepared for a price shock from the Iran war

An inflation shock triggered by the US-Israel attack on Iran could wreck a fragile global economic recovery that had been expected to gain momentum this year.

With oil and gas prices spiking, despite a pledge from Donald Trump to protect tankers making their way through the crucial strait of Hormuz shipping chokepoint, central bankers and economists have warned that a prolonged conflict could increase retail prices around the world and force them to rip up growth forecasts for this year.