The governor of the Bank of England warned on Tuesday, before the Treasury Committee of the House of Commons, that a resumption of fighting in the Middle East shows that the world’s economic and financial situation will remain unpredictably unstable in the future.

Andrew Bailey said that the fragility of the ceasefire and the renewed rise in energy prices have created fresh risks to financial stability.

The warning came after attacks by forces of the Islamic Republic on commercial vessels and attempts to disrupt traffic in the Strait of Hormuz—actions that have put pressure on energy markets and on governments’ borrowing costs.

In contrast, U.S. Central Command says the country’s military attacks were carried out to weaken the Islamic Republic’s missile, drone, and coastal capabilities and to protect freedom of navigation.