A new villain for business sentiment
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The war with Iran has become a major concern for business leaders, surpassing trade policies as the primary impediment to business confidence. Rising oil prices and war-related disruptions to supply chains have led to a weakening of global business sentiment, according to surveys from Moody's Analytics and the Institute for Supply Management.
The war with Iran has knocked tariffs off the top spot as the primary concern for business leaders. Rising oil prices and supply chain disruptions are now the dominant issues. According to Moody's Analytics, global business sentiment has weakened since the conflict began. The Institute for Supply Management's monthly service sector index also cites war-related impacts as a major concern. JPMorgan Chase CEO Jamie Dimon has highlighted geopolitics and war-related disruptions as a risk to the economy. The war's impact on inflation and growth has overtaken trade and tariff policy as a concern for community bankers. The global economy is expected to take months to recover from the supply chain bottlenecks created by the near-closure of the Strait of Hormuz. Goldman Sachs now expects global inflation to jump to 3.3 percent this year.
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