Economist says Israel-Iran conflict will create a 'shock' in the global economy | LBC

Lewis Goodall is joined by economic advisor and candidate for the Chancellor of Cambridge University, Mohamed El-Erian, to discuss the economic impact of the conflict between Israel and Iran. Israel's attack on Iran's main nuclear enrichment site overnight on Friday marked a dramatic escalation in tensions between the two countries. If this conflict were to continue for more than a few weeks, Mohamed El-Erian believes that it will directly hit the UK 'in the pocket' as he argues, 'the magnitude will depend on the duration of this conflict.' The conflict has already seen restrictions to the Straits of Hormuz, a significant oil shipping link to the rest of the world, as roughly 20 million barrels per day pass through. Mr El-Erian predicts that this restriction, and a possible future blockage, will significantly increase global oil prices and how much we in the UK pay at the pump. The chief economic advisor at Allianz warns of a state of stagflation in the UK: a slowing down of the economy coupled with increasing prices of goods. If this is true, he tells Lewis that the Chancellor, Rachel Reeves, should be 'very worried.' Listen to the full show on the all-new LBC App: https://app.af.lbc.co.uk/btnc/thenewlbcapp #lewisgoodall #israeliranwar #netanyahu #nuclear #nukes #iran #middle school #warzone #conflict #economy #oil #price #inflation #LBC LBC is the home of live debate around news and current affairs in the UK.