Global growth slows as a war‑induced energy crunch bites into markets, pushing inflation higher across major economies.

Investors notice tightening supply chains as oil prices spike, tightening fiscal levers in both advanced and emerging markets. The surge in energy costs amplifies consumer price pressures, nudging central banks toward more hawkish stances.

Corporate earnings forecasts shrink as input costs climb, forcing firms to cut margins or raise prices. The slowdown risks dampening consumer spending and could tighten credit conditions as banks pull back.

Policy makers face a dilemma: curb inflation without stalling recovery. The next quarter will test whether monetary tightening can coexist with resilient growth amid ongoing geopolitical tensions.