What does conflict in the Middle East mean for oil prices and the economy?

Israel launched a retaliatory strike on Iran in the early hours of Friday morning. Oil prices spiked in response, before falling back again. As tensions escalate, what’s next for inflation and the economy?

Flags of Israel and Iran
(Image credit: Manuel Augusto Moreno via Getty Images)

Israel hit Iran’s central province of Isfahan with a missile strike in the early hours of the morning on Friday, 19 April. This caused oil prices to briefly spike, before falling back down again. 

The attack from Israel is the latest in a string of tit-for-tat relations between the two countries. It comes after Iran launched a drone and missile strike on Israel last Saturday. 

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Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.