Shockwaves: How the US–Iran War Is Dragging the World Economy Down

The global economy is entering a more dangerous phase as the US/Iran war deepens. What began as a regional conflict is now disrupting energy, trade, and financial stability worldwide.

At the centre of the crisis is energy. The closure of key shipping routes has pushed oil and gas prices sharply higher, feeding inflation and squeezing households and businesses across continents.

The effects are spreading through global trade. Supply chains are under strain, production costs are rising, and companies are delaying investment amid growing uncertainty and disruption.

What concerns economists most is the risk of stagflation, that is slow growth combined with persistent inflation. With central banks unable to cut rates, the world faces a prolonged period of weak growth and rising prices.

Credible source:
Reuters – https://www.reuters.com/business/energy/global-markets-stagflation-graphic-2026-04-30/

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