Global benchmark Brent surged as much as 5.7% to US$81.40 a barrel early in Asia Monday, before paring much of that gain in heavy trading.
International Monetary Fund Managing Director Kristalina Georgieva warned that the US strikes on Iran could potentially have broader impacts beyond energy channels, as global uncertainty escalates.
“We are looking at this as another source of uncertainty in what has been a highly uncertain environment,” said Georgieva in an interview with Bloomberg TV on Monday. The biggest shock so far has been seen in energy prices, which the IMF is watching closely, but “there could be secondary and tertiary impacts. Let’s say there is more turbulence that goes into hitting growth prospects in large economies — then you have a trigger impact of downward revisions in prospects for global growth.”
