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The Big Take
$50 Trillion Safe-Haven Debt Market Upended by Iran War Inflation
Investors in the safe haven of G7 debt want protection as the conflict in the Middle East threatens another bout of inflation.
Andrew Bailey, governor of the Bank of England, left, speaks with Scott Bessent, US treasury secretary, during the G-7 finance ministers and central bank governors meeting in Paris, France, on Monday.
Photographer: Benjamin Girette/Bloomberg
By
Enda Curran,
Mark Schroers,
Ye Xie, and
Jorgelina Do Rosario
May 22, 2026 at 5:00 AM GMT+8
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One inflation spike in the 2020s might be an accident, the world’s biggest bond markets seem to have decided, but two looks like an alarming new trend.
The US war on Iran is inflicting another wave of price hikes on a global economy that’s barely recovered from the last one. A material chunk of the world’s fuel and fertilizers is trapped inside the Strait of Hormuz, and the pain is spreading. European airlines canceled flights, Americans have spent an extra $20 billion at the gas pump, and Asian rice farmers wondered if they should
skip planting. Pretty much every pundit reckons things will get worse before they get better.
Fred Lambert | May 20 2026 - 6:08 am PT
