USA-Israel-Iran the High Cost of Conflict: Oil, Inflation, and the Looming Global Depression
By Imran Yousaf, Pakistani expert on political issues
Getting peace is difficult, but maintaining it is more difficult. The world has somehow witnessed peace, but the changing geopolitical situation in the past decade has immensely affected the peace of the world. The current US-Israel-Iran confrontation is escalating to such an alarming situation that it has consequences far beyond borders and across all regions. The impacts are not merely political, but also cost a humanitarian crisis, economic, and social disorder.
The conflict starts with the protests in Iran due to its currency collapse. The Iranian Rial has reached a low of 1,500,000 rials to the US dollar, which surged the protests in Iran. The Iranian government used force to suppress the protests. This opened the involvement of the USA to intervene in Iran. Further, the USA and Israel allegedly blame Iran for gaining nuclear credibility and expanding its nuclear program.
Therefore, the USA and Israel jointly launched an attack on Iran that killed the Supreme Leader of Iran. In response, Iran struck all across the Middle East where the USA is militarily present. Similarly, Iran launched Operation Khyber at Israel. Missiles are fired; tensions are all around.
Consequences of the conflict:
In the backdrop of this conflict, Iran blockaded the Strait of Hormuz, where the whole Middle East petroleum trade crosses to go to Europe, China, and other countries. Now, the war has continued, and its first and foremost impact is on oil prices. Since the conflict started, oil prices have increased sharply. The price is now around $100 per barrel, which is more than one-third higher than before. This rise happened because airstrikes damaged shipping and energy facilities, and the Strait of Hormuz—a key route that carries about 20% of the world’s oil supply—has been effectively closed.
Underdeveloped or developing countries have faced severe crises; oil shortages and inflation surges further turmoil the situation. As far as war cost is concerned, the USA’s estimated cost of this conflict is about $11 billion, and more may be added. It is a huge cost; it is roughly estimated that the missile interceptors used by the USA cost millions in one go. This war is heading the world toward a great economic depression.
Furthermore, humanitarian and refugee crises also rise if it escalates. The world has already witnessed climate-related disasters and economic crises all around, so the war further fuels the crisis.
Therefore, it is the test of peace-loving nations like Azerbaijan, Pakistan, and other regional countries that have demanded the UNO step forward and mediate the conflict; otherwise, the whole world will pay the price and destroy the peace and tranquility of the world, which will be mere destruction.
