Micah Jonah, March 7, 2026
The ongoing conflict involving the United States and Israel against Iran is raising concerns about potential shocks to the global economy, with analysts warning that rising energy prices could fuel inflation, slow economic growth, worldwide.
A major source of concern is the disruption of oil and gas flows through the Strait of Hormuz, a critical maritime route through which about one fifth of the world’s oil supply normally passes.
Tensions in the region have already led to a sharp decline in shipping activity through the waterway, with some vessels targeted in attacks and insurers withdrawing coverage for ships operating in the Gulf.
Oil prices have begun to rise as a result. Brent crude was trading around 84 dollars per barrel, about 15 percent higher than levels recorded before the conflict began.
Energy analysts say a prolonged disruption could drive prices higher, significantly, potentially reaching 100 dollars per barrel or more if shipping through the Strait of Hormuz remains restricted for several weeks.
The conflict has also disrupted energy production in Gulf countries including Qatar and Saudi Arabia, where key facilities have reportedly come under attack.
Experts warn that sustained increases in oil and gas prices would likely push up the cost of goods and services globally, prompting central banks to raise interest rates to control inflation.
Higher borrowing costs could in turn slow consumer spending, reduce economic growth.
Countries in Asia are expected to be among the most affected, as about 80 percent of oil transported through the Strait of Hormuz is shipped to the region. Major energy importers such as India, Japan and South Korea rely heavily on supplies passing through the route.
Liquefied natural gas prices have also surged, particularly in Europe, where supply concerns intensified after production disruptions linked to attacks in the Gulf.
Economists say the scale of the economic impact will depend largely on how long the disruption continues, whether energy infrastructure in the region suffers further damage.
If shipping routes stabilise and energy flows resume quickly, the global economy may avoid a deeper slowdown. However, analysts warn that prolonged uncertainty in the region could have far reaching consequences for international trade and economic stability.
