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.
📉 3. Financial Markets Volatility
Investors typically flee to “safe haven” assets like gold, the U.S. dollar, or Treasury bonds.
Stock markets could plunge, especially in sectors like travel, tech, and consumer goods.
Gold and crypto may rise as hedges against instability.