New Delhi, March 17 -- The ongoing conflict in the Middle East and the effective closure of the Strait of Hormuz since the start of March have introduced a stagflationary risk to the global economy, according to a report by Fidelity International.

The report highlighted that the situation has now moved beyond mere market fears to actual supply constraints.

"The Strait of Hormuz being effectively closed since the start of March means that the mechanism has shifted from headline fear to physical constraint," it said, highlighting the seriousness of the disruption.

A prolonged disruption in the Strait is expected to create a supply-side shock, leading to higher inflation and weaker economic growth globally.

The report noted that such a s...