Nobel laureate Stiglitz warns that the United States is on the brink of stagflation

Nobel Prize winner Joseph Stiglitz(Joseph Stiglitz) has issued a grave warning: a war against Iran will summon the “Four Horsemen” of economic doom—namely “rising oil prices, soaring food prices, recession, and chaos. The various negative impacts are obvious.”

Stiglitz is a professor at Columbia University and received the Nobel Prize in Economics in 2001. He is known for his left-leaning political stance. He has never shied away from openly opposing the current U.S. government. In a recent episode of the podcast “Monetary Matters,” he—during an interview with Jack Farley(Jack Farley)—stepped up his criticism of the war aimed at toppling Iran’s government. He said, “A year ago, President Trump threw a hand grenade into the global economic system with his erratic tariff policies. Now, he has thrown another by means of this unprovoked war against Iran.”

For a war that has been unfolding for less than two weeks so far, Stiglitz focused on its economic impact. He pointed out that over the past week, oil prices have surged to above $100, with gasoline prices rising by 17%. With shipping disrupted and fertilizer costs increasing, food prices are also affected. He also noted that Trump failed to adequately replenish the Strategic Petroleum Reserve, meaning that even releases of the reserve now are of little use.