The Federal Reserve, the ECB and the Bank of England appear unclear on how to tackle inflation amid the Iran war

• New UK cost of living crisis looms as rising energy bills lift inflation

As the Middle East crisis drags on into its sixth month, central banks sit in a tricky position. Oil prices remain at elevated levels, stoking inflationary pressures while also threatening to weigh on growth.

The US Federal Reserve, the Bank of England and the European Central Bank are still smarting from the criticism of their inaction in 2022, when inflation soared above 10% in the UK and eurozone and over 9% in the US.