The recent escalation of tensions in the Middle East has further added to global economic uncertainty. The susceptibility of oil supplies to potential disruption on account of the military action in that area resulted in a spike in crude oil prices. Brent crude oil prices reached a high of US$76 per barrel (bbl), but subsequently fell below US$70/bbl following the announcement of a ceasefire. Financial markets nonetheless remain on edge in a very fluid situation. Higher energy prices and a possible escalation of hostilities pose risks for growth and inflation across the world, although energy exporters could benefit from the terms of trade shock.