The war with Iran is doing collateral damage to the world economy. The conflict is driving up energy and fertiliser prices; threatening food shortages in poor countries; destabilising fragile states such as Pakistan; and complicating options for the inflation fighters at central banks like the Federal Reserve. Causing much of the pain: Iran shut down the Strait of Hormuz - through which a fifth of world's oil passes - after the US and Israel launched missile strikes Feb 28 that killed Iranian leader Ayatollah Ali Khamenei.