US-Iran Conflict Sends Global Economy into Chokehold

The ongoing US-Iran conflict has sent shockwaves through major economies worldwide, disrupting energy supplies and shipping routes. The Strait of Hormuz, which accounts for about one-fifth of global oil exports, has been severely disrupted.

This has led to a sharp rise in global energy prices, with Brent crude moving back above $100 a barrel in September. According to S&P Global, the average Brent price in the first half of September was more than 40% higher than its early-July low.

The impact of the conflict on economies varies, but most are experiencing increased costs and reduced growth. Energy importers, such as India and Japan, face a more direct hit due to higher fuel costs raising production and transport expenses.