Iran Attack Sparks Global Economic Crisis
The sudden escalation of Operation 'Epic Fury' on February 28, 2026, marked a turning point in global markets. In response to Iran's nuclear ambitions, US and Israeli forces launched a surprise attack on Iranian command centers, killing Supreme Leader Ali Khamenei.
Oil prices surged within days, breaching $120 per barrel by March 1 and reaching an all-time high of $166 for Dubai crude on March 19. The International Monetary Fund (IMF) warned that the global economy was poised to contract due to higher inflation and lower growth, with a 'severe scenario' predicting a collapse in global growth to 2%.
US President Donald Trump announced 'the toughest sanctions in history,' targeting countries aiding Iran. Jerome Powell, head of the Federal Reserve, admitted that no one knew the final economic impacts of the war, while Nouriel Roubini predicted oil prices could surge above $200 a barrel in the worst-case scenario.
Global growth slowed to 2.5% in 2026, according to the World Bank's Global Economic Prospects report, with Iran's economy contracting by 6.1%. The war accelerated changes in global debt, which reached $365 trillion by mid-2026, threatening the system.