Title:
Global Impact of the Iran Conflict

Authors:
Arthur Kraft, PhD & John Kraft, PhD, USA

Abstract:

It was apparent that Israel was key to the US move against Iran. Israel was unable to accomplish its Middle East objectives without the help of the United States. The U.S involvement allowed Israel to achieve its long-awaited goals to eliminate or neutralize Iran and its militias.  Iran realized that its greatest weapon was to close the Strait of Hurmuz Even though the conflict focused on the Middle East, the global impact proved to be far greater than expected. The paper explored the far-reaching tentacles of the Iran conflict. It looked at the events that unfolded and the pain they caused in the global economy. Supply chains were examined to determine potential disruptions. As time passed, it became apparent that the results influenced areas beyond the energy sector. After the initial attacks on ships, only the threat of attacks was enough to deter shipping. While crude oil represented a significant Middle East export, fertilizer components and LNG represented significant exports that negatively impacted the global economy. Strong inflationary pressures were caused by increased energy, fertilizer and food prices related to supply chains disrupted by war. Closing of the Strait of Hormuz hurt the Middle Esat and caused hardships in Europe and elsewhere. The estimated cumulative cost of the war went far beyond  gulf energy producers. These numbers did not even consider the global impact on consumers and transportation. 

DOI: https://doi.org/10.51505/IJEBMR.2026.10711