Second wave of inflation is coming as oil price soars and Israel-Iran war looms | Personal Finance | Finance [Video]

Share prices in the US, Europe and Asia fell as the oil price jumped past $90 a barrel, amid growing fears grow of a direct conflict between Israel and regional rival Iran over Gaza. If the oil price continues to climb many now fear it could trigger a second wave of inflation, just as we thought the cost-of-living crisis was drawing to a close.

Crude oil is up almost 20 percent so far this year and may climb higher still as fears of a wider Middle-East conflict intensify, according to Joshua Mahony, chief market analyst at Scope Markets.

He said the “downbeat” mood was aggravated by fears that the US Federal Reserve was now less likely to cut interest rates as the country’s economy continues to run red hot. “Markets continue to price a June rate cut but those expectations are gradually fading.”

Investors are desperate for that first interest ratecut, as they believe this would light the …