Israeli strikes on Iranian energy infrastructure are spooking markets as investors become increasingly concerned that a longer-term oil price spike will fuel inflation and derail hopes of interest rate cuts.

Israel attacked South Pars, the world’s largest gas field, at the weekend, causing production to be partially suspended. In later attacks, Israel struck Tehran’s main gas depot and one of the country’s largest oil refineries in separate parts of the capital. Iran is the third-biggest producer in the Organisation of the Petroleum Exporting Countries.

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