Elijah Oliveros-Rosen warned that the recent rise in tensions in the Middle East conflict could have economic consequences for emerging European countries whose central banks thought they had inflation beaten.

He added that further “upward pressure on oil prices” would result if Iranian energy assets are targeted by Israel in retaliation for Iran’s retaliatory missile strike on the country at the beginning of October.

Oliveros-Rosen said: “If oil prices rise further, it would threaten to disrupt the current disinflation process of most emerging markets. This could slow, or delay, central banks from reducing interest rates.

“This is especially true for major emerging market net energy importers, as the potential for associated weaker external accounts could keep central banks more cautious towards lowering rates to prevent disorderly capital outflows.”

Reuters wrote on Thursday that oil prices rose on the back of the Middle East conflict and major storms off the Florida coast of the US.