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Trump hasn’t ruled out a draft for war with Iran — but is conscription constitutional?

Escalating conflict involving Iran has sent global markets into decline as oil prices surged above $119 per barrel. Stock and bond markets worldwide fell as investors worried about the economic impact of the widening Middle East conflict. Central banks, including the ECB, are now weighing how the crisis might affect inflation and monetary policy.

Energy market disruptions from Middle East conflicts have historically triggered global recessions and reshaped monetary policy. With oil prices spiking and inflation concerns returning, investors fear central banks may need to tighten policy just as economies were stabilizing.
Markets say

The selloff reflects genuine concerns about supply chain disruptions and energy costs that could reignite inflation globally. With oil above $119, investors are pricing in prolonged economic uncertainty that could force central banks to abandon their current policy stances.

Central banks say

Officials like those at the ECB are taking a measured approach, holding rates steady while assessing the actual economic impact. They're signaling they need more clarity on whether the conflict will prove durably damaging before making policy changes.