The financial fallout from the US-Israeli war of aggression on Iran is sending ripples through the global economy, with experts warning of significant price hikes.
Reports published early on Monday brought a stark wake-up call for British markets. The FTSE 100 plummeted by nearly 200 points, a drop of roughly 2%. This downturn was mirrored across Europe, with Germany's DAX index suffering a 2.3% loss.
Esteemed economist Philippe Aghion said the conflict is projected to dampen worldwide economic expansion.
Aghion told RTL radio that a protracted conflict could usher in a period reminiscent of the 1973 oil crisis.
The Nobel laureate outlined a scenario where the fighting drags on for weeks, driving oil prices beyond $150 per barrel and triggering rampant inflation. Such a situation, he noted, would necessitate a unified economic response from Western nations, including the United States and Europe.
“An extended and broadening conflict will undoubtedly hinder global expansion,” Aghion warned.
Writing for the Al Jazeera news website, Richard Gaisford said the Bank of England may be compelled to increase interest rates to curb the expected surge in prices in response to the current market jitters. Such a move would have wide-reaching consequences, making loans more costly for corporations, homeowners, and the government itself.
The cost of UK government borrowing has already spiked dramatically since the war on Iran began. This escalation in bond yields adds another layer of complexity to the nation's fiscal management and day-to-day operations.
The United States and Israel launched an unprovoked war on Iran on February 28 by assassinating top Iranian officials and commanders in airstrikes and targeting the country's military and civilian infrastructure.
Iran has responded massively by attacking the Israeli regime and US military assets in regional countries, with the latter deeply affecting the production and transport of oil and natural gas in the region.
Iran has warned that the price of oil could reach historic records with a further escalation of the war, a scenario which could lead to reciprocal attacks on energy facilities in Iran and in the Persian Gulf.
The Islamic Revolution Guards Corps’ (IRGC) Intelligence Unit says Iran will consider the Israeli regime’s shelters “legitimate targets” if residential areas in the country come under attack.
In a post published on social media platform X on Tuesday, the IRGC said that any strikes on residential areas in Iran would give Iran’s armed forces the right to attack Israeli shelters in the occupied lands.
The IRGC stated that it has intelligence on the blueprints and the exact locations of these shelters.
Iran began its Operation True Promise 4 after the US and Israel launched their joint military aggression against the Islamic Republic in late February by assassinating Leader of the Islamic Revolution, Ayatollah Sayyed Ali Khamenei, and several senior Iranian officials.
In its latest wave of attacks, the IRGC said it rained down missiles on the Israeli regime’s “secure” intelligence facilities in Tel Aviv.
Iranian armed forces have also pounded American military bases and ...
In a fresh wave of retaliatory strikes, the Islamic Revolution Guards Corps (IRGC) targeted the Israeli regime’s “secure” intelligence facilities in Tel Aviv.
The IRGC’s Public Relations Department said in a statement on Tuesday that it had carried out the 79th wave of its ongoing retaliatory Operation True Promise 4 against the Israeli and American targets.
Deploying powerful Kheybar Shekan, Emad, and Sejjil missiles alongside IRGC Aerospace Force kamikaze drones, the operation successfully breached the regime's multi-layered air defense systems, the statement said.
The missiles, it stated, targeted Israel’s intelligence facilities in northern and central Tel Aviv, as well as military commercial and support centers in Ramat Gan and the Negev.
The missiles also hit Israel’s southern military logistics and command headquarters in Beersheba.
The missile strikes triggered widespread panic across Israel and forced the suspension of a Knesset (parliament) session on Tuesday.
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The Islamic Revolution Guards Corps (IRGC) announces staging the 78th wave of its underway retaliatory Operation True Promise 4, targeting such highly sensitive Israeli targets as Dimona, Tel Aviv, and Eilat as well as several US military bases in the region.
In a statement on Tuesday, the IRGC described the latest phase of the operation as a significant development featuring missiles raining down on enemy targets as the nation was leveling momentous support behind the Islamic Republic by attending millions-strong rallies with "clenched fists."
'A distinct record'
The latest phase, it noted, "has set a distinct record in the timeline of the war."
According to the statement, targets in the occupied port of Eilat, Dimona, a heavily fortified city that hosts the Israeli regime's notorious nuclear reactor in its vicinity, and northern Tel Aviv were struck using Emad and multi-warhead Qadr missile systems along with attack drones.
This was the second time the Corps was hitting Dimona, ...
