Top economist Mohamed El-Erian warns of stagflation gripping the entire world economy the longer the Iran war goes on

The global economy has withstood plenty of turmoil in the past few years, staving off a widely predicted recession in 2022, but the most recent conflict to break out in the Middle East could be one step too far for a world that was already starting to show some economic cracks.

Renewed conflict in Iran has already rattled global markets since U.S. and Israeli attacks began on Saturday. On Tuesday, the S&P 500 fell more than 1.5%. International investors weren’t spared either, with indexes falling sharply in London...