An economic tsunami looms as the Middle East crisis threatens to unleash oil market havoc that could send ripples through the global economy. The escalating conflict has set the stage for a volatile cocktail of surging prices and market uncertainty, as we could be on the brink of $100 a barrel oil. The recent flare-up in tensions has already sent prices soaring, and the VIX index, Wall Street's 'fear gauge', has spiked, reinforcing the uncertainty.

This reaction is not unfounded, as the potential for further escalation brings the Strait of Hormuz into focus, as any disruption to this crucial artery could severely affect the global oil supply. This could trigger a recession in European oil-importing countries, particularly those grappling with high inflation and sluggish growth. Additionally, the spectre of rising oil prices threatens to reignite inflationary pressures for Western economies, just as central banks were beginning to declare victory in their battle against surging prices.