JAKARTA - International Monetary Fund (IMF) spokesperson Julie Kozack said the US and Israeli military operations against Iran could potentially increase global inflation if the conflict lasts long.
"If it persists, higher energy prices will drive a rise in core inflation," Kozack said, quoted by ANTARA from Sputnik, Friday, March 20.
According to the IMF's calculations, a 10 percent increase in oil prices in the long term can increase global inflation by 40 basis points and reduce global output by 0.1 to 0.2 percent.
On February 28, the US and Israel launched an attack on a number of targets in Iran, including in Tehran, which caused damage and civilian casualties.
Then, Iran responded by attacking Israeli territory as well as US military facilities in the Middle East.
Escalation around Iran has led to a de facto halt in traffic in the Strait of Hormuz, the main route for the shipment of oil and liquefied natural gas from Persian Gulf countries to global markets, which has an impact on oil exports and production in the region.
As part of efforts to suppress oil prices, the US granted an exemption from sanctions on India's purchase of Russian oil loaded onto tankers before March 5, and then for all Russian oil and oil products loaded onto ships since March 12.
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