US-Iran Conflict Spreads Across Middle East, Threatening Energy Supplies

The conflict between the US and Iran has escalated into a regional war, threatening energy supplies and potentially triggering a global recession. The past week saw attacks and counterattacks in at least five countries across the Middle East.

The US and Saudi Arabia have joined forces to carry out airstrikes against Iranian-backed militias in Iraq, killing 20 fighters. This move has been met with denial by Iraqi leaders, highlighting their reluctance to be associated with Trump's expanding regional war.

The conflict has disrupted oil supplies, with Iran effectively shutting the strait of Hormuz and Saudi Arabia rerouting nearly half its exports through a longer and more expensive route around Africa.

Saudi Arabia's economy has been severely impacted, with its GDP decreasing by nearly 5% in the second quarter of this year compared to the same period last year. The kingdom is planning for a major military offensive against the Houthi militia, another Iranian ally, which controls large areas of Yemen.

The Houthis have attacked several ships in the Red Sea, forcing Saudi Arabia to take action and potentially reopening a painful chapter in recent Saudi history. Despite thousands of airstrikes over seven years, the Houthis remained in control of parts of Yemen, and negotiations for a permanent peace deal stalled after the militia started attacking ships.