By early 2026, the Middle East had tipped from simmering tension into open war between Iran, Israel, and the United States, and the shockwaves hit the global economy harder than almost anyone predicted. Targeted strikes spiraled into a crisis that shut down the Strait of Hormuz, pushed oil past $120 a barrel, and left supply chains tangled from Shanghai to Rotterdam. Ceasefires are holding, for now, as talks continue through the middle of the year. But the damage is still visible. This was never just a regional flare-up, it was a stress test for the entire interconnected global economy, and it forced governments, businesses, and households alike to reckon with how exposed they really are. How It Started The breaking point came in late February 2026. U.S. and Israeli strikes hit Iranian nuclear and military targets, and Iran answered with attacks on shipping and infrastructure across the Gulf. Within days, Iran had effectively closed the Strait of Hormuz, the c...
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