The Iran War: Can Global Markets Endure?

Wars have long been shaped by economic forces, both in the conditions that give rise to conflict and in the far-reaching consequences they leave behind. The U.S.-Israel-Iran war represents a critical moment for the global economy, with repercussions extending well beyond military and geopolitical spheres. Heightened instability and threats to strategic maritime chokepoints, particularly the Strait of Hormuz, have strained global and regional markets, fueling volatility in energy prices, disrupting supply chains, and driving up shipping and insurance costs. For Gulf economies, the conflict presents a double-edged challenge: while rising hydrocarbon prices may boost state revenues in the short term, escalating security risks threaten foreign investment, long-term diversification strategies, and broader economic stability.

Against this backdrop, the Middle East Council on Global Affairs is hosting an online panel discussion to examine the economic repercussions of the U.S.-Israel- Iran war and assess the scale of the shock to regional and global markets. The discussion will address key questions, including: how has the war affected oil and gas prices, and what are the implications of potential threats to maritime routes for global energy supplies? What are the direct consequences for Gulf economies, particularly in relation to investment, growth, and diversification strategies? To what extent can Iran withstand the economic costs of war and prolonged sanctions? How are rising geopolitical risks reshaping international trade flows, shipping costs, and global inflation? And what does continued political uncertainty in the region mean for the future of markets and the stability of the global economic system?