The US/Israel-Iran war has caused a major shift in global economic dynamics, driving oil prices higher and exposing vulnerabilities in energy-dependent economies. With the Strait of Hormuz – responsible for over a quarter of global oil exports – blocked, inflation and supply chain disruptions are spreading far beyond the Gulf. This crisis is deepening the divide between energy importers and exporters, prompting businesses and governments to reconsider resilience, competitiveness and long-term growth strategies.
The prolonged US/Israel-Iran war scenario assumes the conflict continues and markets increasingly believe it will not end anytime soon. Shipping through the Strait of Hormuz remains disrupted, attacks on energy infrastructure persist, and war risk costs stay elevated.
For a deeper understanding of how rising oil prices affect the world’s largest economies, read our report, US/Israel-Iran War: GCC Impact and Diverging Economic Exposure.
