Market analysts highlight that the ongoing escalation of conflict in the Middle East, particularly between the US and Iran, alongside persistently high oil prices, has brought inflation concerns back to the forefront.

BlackRock estimates that this conflict could elevate the global headline inflation rate by approximately 0.8 percentage points, though the impact will vary significantly across different regions.

In a research note, BlackRock pointed out that Europe and several Asian economies, which are heavily reliant on energy imports, are likely to feel the effects of this global inflationary shock more acutely.

OCBC Bank shares a similar perspective. Their report states, "With labor market data stabilizing rather than weakening, a fresh energy shock will cause the Federal Reserve to refocus on inflation's upside risks."

Yongyu Ma, Chief Investment Strategist at PNC Asset Management, commented in a television program, "While the improvement in profit margins for small and mid-cap US companies is a positive development, I am uncertain whether such positive trends can withstand several consecutive quarters of high oil prices and mounting inflationary pressures."

Ma believes the Federal Reserve's hawkish stance is unlikely to change in the near term. "Only when pressures in the energy and crude oil markets ease, and the various resurgent inflationary factors subside, will we see a shift in the Fed's policy posture," he noted.

He concluded, "In the current environment, it is essential to build a balanced investment portfolio and hedge against related risks through asset diversification."