The war between Iran and Israel, if it escalates into a prolonged or wider regional conflict, would have serious global economic implications. Below is a breakdown of the key potential impacts:
🔥 1. Energy Markets & Oil Prices
Why it matters:
Iran is a major oil producer, and the Middle East holds about 50% of the world’s oil reserves.
The Strait of Hormuz, a key chokepoint, sees ~20% of global oil pass through it.
Possible effects:
Oil prices could skyrocket, potentially exceeding $100–150 per barrel if the Strait is blocked or disrupted.
Higher gasoline and energy prices worldwide, fueling inflation.