#IsraelIranConflict As of Friday, June 13, 2025, Israel has launched significant airstrikes against Iran, targeting nuclear facilities, military sites, and reportedly killing top military officers and nuclear scientists. Iran has retaliated by launching drones towards Israel, which Israel claims to be intercepting.

The ongoing Israel-Iran conflict is expected to significantly impact global trade, primarily through volatility in oil prices and disruptions to shipping routes. Any escalation, particularly involving the Strait of Hormuz, could severely restrict oil flow, leading to sharp price spikes and increased inflation worldwide.

Beyond energy, global supply chains face heightened uncertainty, leading to increased shipping costs and potential rerouting. While direct trade between Israel and Iran is minimal, the broader instability will deter investment and impact regional economies like Azerbaijan. Nations heavily reliant on oil imports, such as India, will experience pressure on their currencies and increased inflation. Investors are likely to favor "safe haven" assets like gold, while stock markets could remain volatile, with a "risk-off" sentiment prevailing. The long-term outlook hinges on the conflict's duration and scale, with prolonged tensions having more severe and widespread economic consequences.