US War Against Iran Unleashes Global Economic Crisis

The US war against Iran has had far-reaching consequences for America's economy and military capabilities.

Oil is at the top of the list, with the International Energy Agency describing the disruption as the largest in history. By June, the cumulative reduction in supply exceeded 1.3 billion barrels, prompting an emergency drawdown of oil reserves twice as large as after the Ukraine war in 2022.

Morgan Bazilian, director of the Payne Institute for Public Policy and former energy specialist at the World Bank, warns that this is only the first layer of a broader crisis. The war has shaken interconnected markets, including gas, helium, chemical fertilizers, metals, and precision industries, many of which lack strategic reserves to compensate for supply cuts.

Nadia Shadlow, a researcher, believes that erosion extends beyond markets to reveal limitations in America's military model. Designed for short and decisive wars, the US has struggled against rivals who can turn confrontation into long tests of ammunition, industries, and political will.