Eshe Nelson

The Federal Reserve chairman, Kevin Warsh, stressed that the central bank would “deliver price stability,” a point he has emphasized repeatedly since taking over in May.

Citing lower trade and investment, analysts broadly agree that Britain’s economy is smaller than it would have been if the country had stayed in the E.U.

Bank of England policymakers kept interest rates on hold, saying the impact of the war in Iran was still a major source of uncertainty for the economy.

The European Central Bank is set to raise rates, the first such move since September 2023, as energy disruptions caused by the Iran war drive higher prices.

As the war in Iran persists, signs point to a prolonged period of higher prices and slower growth rather than a quick shock.

The Organization for Economic Cooperation and Development, in a report, said the Middle East war’s consequences “are likely to be felt for some time.”

After three months, the fallout of the closure of the Strait of Hormuz is spreading, with developing countries bearing the brunt of the shortfall.

Britain is facing another round of turmoil in government leadership, jolting debt investors who were already on high alert over inflation.

Fatih Birol of the International Energy Agency, who orchestrated a multinational release of oil reserves, detailed the risks facing the economy now and beyond.

Already having faced an energy crisis five years ago, more European consumers believe they are “one Trump-ignited war away” from crushing costs.

Bond investors are expected to scrutinize the results of critical local elections on Thursday as the war in the Middle East adds inflation pressure on the government.

A 10 percent tax on American imports was hurting British sales, even though exporters had increased sales in India, China and other countries.

As risk has escalated, central banks have bought more gold to stash in reserve. A widening Middle East war could add to the urgency.

As central banks buy more gold, where to put all that heavy metal is an increasingly important question. Reserves must be secure and ready to trade in a crisis.

The European Central Bank and Bank of England were expected to hold interest rates steady on Thursday while searching for signs of possible longer-term damage.

Global jet fuel prices have jumped more than 70 percent since the start of the war, pressuring airlines in Europe, the largest consumers of jet fuel shipped through the Strait of Hormuz.