'Mild stagflation': Bank of America rips up economic forecasts, braces for $100 oil all year on Iran war disruptions

Bank of America analysts are projecting slower growth, higher inflation, and $100 per barrel oil all year as a result of the Iran war — even if it ends within weeks.

"The war dividend so far: mild stagflation," BofA economist Claudio Irigoyen and his team wrote in a note on Wednesday, referring to the economic phenomenon of higher inflation coupled with slower growth.

The economists said that while the world economy is less dependent on oil, it has become much more sensitive to natural gas and fertilizers. This represents a major risk for Europe and developing economies.

"The Iran war is not an oil shock — it is an energy shock," Irogoyen wrote.

https://finance.yahoo.com/news/mild-stagflation-bank-of-america-rips-up-economic-forecasts-braces-for-100-oil-all-year-on-iran-war-disruptions-163951466.html