What Economic Effects Can an Escalation of the Conflict Between Israel and Iran Have?

El Vocero de Puerto Rico

Arena Pública

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Arena Pública

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In an increasingly interconnected world, armed conflicts are no longer confined to the geographical location where they occur. The confrontation between Israel and Iran is not just a military escalation in the Middle East, but an episode with profound global economic repercussions. This new war marks a turning point on the international geoeconomic landscape, and its effects are already being felt in the pockets of ordinary citizens from San Jua…

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In case the world economy did not have enough with the swings caused by Donald Trump’s policies (aranceles, unsustainable fiscal reform, government cuts, encircling immigrants...) the tension has escalated several steps in the Middle East. Again, with Israel and Iran as protagonists. A protracted conflict between the two powers would not only have an impact on oil and fuel prices, but could also branch out and affect the prices of the rest of th…

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Iran has a nuclear program as a means of mobilizing sustainable energy at the national level, but it has been questioned whether it is not only civilian but also has military intentions.

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In 2025, there was a day in which trade relations were so close that geopolitical events such as those taking place in the Middle East had an impact on other latitudes, more when it came to a region with key players in the oil sector. An ING analysis explains that the new escalation of tensions between Iran and Israel could raise oil prices above $80 and would mean a greater potential for the dollar.