Is a recession coming? Global stock market crash wipes out $3.2 trillion in 48 hours as oil prices surge near $85 on US-Israel-Iran war fears. WTI jumped almost 9% in a single session. Investors reacted to escalating US-Israel-Iran war tensions and supply risks in the Strait of Hormuz, which carries nearly 20% of global oil. Higher oil prices raise inflation risk. Rising inflation may delay Federal Reserve rate cuts. The VIX spiked over 20%, signaling fear. Asian and European markets plunged sharply. If crude sustains above $85–$90, recession 2026 risk rises materially. Markets now price prolonged conflict and slower global growth.
