Global Economic Shifts During the Middle East Conflict
Written by Michelle Selina The escalating tensions between Israel and Iran have sent shockwaves through global markets, raising fears of economic instability, oil price surges, and supply chain disruptions. While the conflict remains regionally contained for now, its ripple effects could threaten global inflation, trade routes, and energy security. With Iran threatening to halt oil exports, the world braces for potential fuel shortages and price spikes. But beyond immediate oil shocks, this conflict could reshape global trade, financial markets, and geopolitical alliances in ways that last for years. Impact on Oil Markets Following initial airstrikes in mid-June, Brent crude surged roughly 11%, peaking near $81/barrel, though it later settled near $67–$75. Oil traders are now weighing several key dynamics: Supply channel disruption: Iran threatens closure of the Strait of Hormuz, a passage for nearly 20% of global oil trade. While markets fear...