Military tensions between the United States and the Israeli regime against Iran have turned into a devastating earthquake for the global economy. This crisis has directly impacted supply chains, energy prices, and food security worldwide, worsening the economic situation of many countries.
Impact on Energy Prices and Global Inflation
The heart of this crisis is in the Strait of Hormuz, where one-fifth of the world's oil and gas passes through. With the disruption of tanker traffic, energy prices in global markets have surged dramatically, and this massive shock has significantly raised the costs of producing various goods. This situation has led to a wave of inflation in consumer markets.
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Regional and Global Economies Under Pressure
The economies of Middle Eastern countries have been particularly affected by these tensions, and reports indicate that these countries are facing economic contraction. Even large emerging countries like the UAE and Saudi Arabia, which have made significant investments to reduce their dependence on oil, have not been able to shield themselves from the repercussions of this crisis. Meanwhile, Oman has managed to register positive growth due to its geographical position, while other countries face serious challenges.
The repercussions of this confrontation are also visible in the major economies of Asia and the West. China and India are facing rising production costs, and stock markets in Seoul and Tokyo have experienced unprecedented declines. In Europe, economic growth has been severely impacted by heavy energy inflation, and American citizens are also suffering from a significant increase in costs.
As the global financial system grapples with public debts and deep inequalities, the continuation or repetition of military adventures against Iran could lead to an unprecedented stagflation. This scenario would mean a permanent blockade of the Strait of Hormuz, destruction of energy infrastructure, and an unprecedented rise in oil prices, which could jeopardize the livelihoods of billions of people.
Major General Mohsen Rezaei, the Secretary and representative of the Supreme Leader in the Supreme National Security Council, has warned about targeting economic infrastructures dependent on the United States in the region. Now it remains to be seen whether the United States can prevent this crisis by making smart decisions or if it will move towards escalating tensions.
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