SriLanka, Sept. 19 -- For a while now, the global economy has been beating the odds. The energy shock prompted by the American and Israeli attacks on Iran in February set off the largest disruption of worldwide energy flows in history. Yet despite jumps in oil prices, widening conflict in the Middle East, fuel shortages and inflation pressures, the feared crash never came and most economies managed to muddle through.Read Economic Reports

But wiggle room is narrowing at the same time the outlook is darkening. Look at what has happened in just the last few days.

Attacks forced Saudi Arabia to shut a vital pipeline. Houthi militia seized a strategic Red Sea island and a port city, which could further restrict shipping in the region. And pr...