Escalation of Israel-Hamas Conflict Could Weaken Global Economy, Raise Inflation: El-Erian
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If the Israel-Hamas conflict expands beyond its current scope, it could lead to weaker global economic growth and more inflationary pressure, according to Mohamed El-Erian.
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El-Erian said investors currently view the conflict as contained, but an escalation could force markets to reassess the economic outlook.
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Broader hostilities could raise geopolitical uncertainty regarding Ukraine, Russia, and China.
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Oil prices spiked on Monday, showing markets are sensitive to the potential for a wider conflict.
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Ed Yardeni also warned that if oil prices keep rising, it could pressure stocks lower and send bond yields higher.