March 11, 2026

How the War on Iran Threatens the Global Economy

By: Becca Wasser

This article was originally published in TIME.

Around two weeks into the American and Israeli war with Iran, the economic, political, and military costs of the conflict for the region and global economy are already significant, and mounting every day. Iran’s swift and broad retaliation against American military bases in the region, its waves of drone and missile attacks against the Gulf Arab states targeting hotels, airports, and energy infrastructure, and its de facto closure of the Strait of Hormuz are a cumulatively costly nightmare for the Gulf.

Disrupted energy flows are a major worry for the global economy. Iran knows that. And today, it has learnt that disrupting the Strait is easy and relatively cheap: low effort, high impact.

The Gulf Arab states have invested heavily in building a carefully curated image as havens of stability and prosperity in an unstable Middle East. Booming, bustling cities, with activities, global sporting events, conferences, and dining options galore, and the promise of a better, easier life for all. While Europe and the United States suffer from economic and political uncertainty, the United Arab Emirates has attracted hundreds of thousands of expats chasing well-paying jobs, low taxes, and stability, especially after the Covid-19 pandemic.

Read the full article in TIME.

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