The ongoing war in the Middle East is anticipated to have a cumulative global impact, with critical business surveys set to be released next week. Economists are closely monitoring purchasing manager indexes (PMIs) across countries, including Germany, France, and the UK, which are expected to show significant deterioration. Chris Williamson, chief business economist at S&P Global, highlighted the looming threat of stagflation—a combination of rising prices and stagnant growth reminiscent of the 1970s. The International Monetary Fund (IMF) has warned finance leaders of potential near-recession scenarios, emphasizing that even a ceasefire would not quickly reverse the economic damage. Key economic data releases, including US retail sales and inflation figures from Canada and the UK, are expected to reflect the ongoing inflationary pressures driven by the conflict. As policymakers assess these developments, they face the challenge of responding to high uncertainty in the current economic landscape.