Although the U.S. is a net oil exporter, higher oil prices could increase inflation and lower economic growth.

If the price of crude oil does not return to around $65 per barrel, it will subtract tenths from the GDP and delay the moderation of price increases. Just a few days after the Bank of Spain and BBVA's research department in Spain presented their macroeconomic projections - which lowered their growth forecast for the country to 2.

That sent the yield on the 10-year Treasury up to 4.43% from 4.36% late Thursday. Higher yields can tug down on prices for stocks and other investments, while making it more expensive for U.S. companies and households to borrow money.

Rather, it is geopolitical factors—specifically, escalating tensions in the Middle East—that are unsettling markets and pushing prices higher.

Richard Yetsenga, Group Chief Economist at ANZ Research, shared his insights on oil, trade, and the geopolitical forces shaping global markets.

Stocks lost ground in early trading Tuesday, while oil prices moved higher, as investors monitored developments in the escalating conflict between Israel and Iran and digested disappointing economic data.

US and Brent crude prices jumped on fears of supply disruption from the Middle East as Iran has repeatedly threatened to close a key shipping route.

U.S. oil prices already jumped last week, which could cause prices at the pump to rise about 20 cents a gallon in the coming weeks, according to one estimate.

New West Asia conflict may impact India. Limited direct trade impact is expected. Higher oil prices are a major concern for the Indian economy. Disrup

Despite not relying on Iran for its oil supplies, petrol and other prices in Australia will rise due to the global impact of the Israel–Iranian war.