The main impacts of the Israel-Iran conflict on the world economy include:
1. **Oil Price Volatility**: The conflict threatens shipping in the Persian Gulf (which accounts for one-third of global maritime oil transport), potentially driving up oil prices and exacerbating global inflation.
2. **Safe-Haven Sentiment**: Funds are flowing into the US dollar and gold, increasing capital outflow pressure in emerging markets.
3. **Trade Disruptions**: The risk in key shipping lanes (the Strait of Hormuz) is rising, leading to increased shipping costs and insurance premiums.
4. **Market Panic**: Global stock markets are experiencing increased volatility, risk assets are under pressure, and companies are delaying investment decisions.
The extent of the short-term impact depends on whether the conflict escalates; if it continues to expand, it could trigger an energy crisis and stagflation risks.