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 US military is facing a "historic challenge" as it attempts to counter Iran’s vast arsenal of “low-cost” drones and ballistic missiles, says a new report.
Nearly two weeks into the US aggression against the Islamic Republic, Tehran has managed to significantly strain American military inventories, Bloomberg reported, citing military experts and Pentagon officials.
The American publication wrote that US forces have been forced to dig deep into inventories of expensive, hard-to-replace interceptors to counter the Iranian barrage.
It stated that the US and its Persian Gulf allies have fired over 1,000 Patriot PAC-3 interceptors—nearly double the annual production capacity of these weapons.
“The United States led the long-range precision strike revolution, and this is the first war where we’re seeing the adversary have that kind of capability,” Bloomberg quoted Kelly Grieco, a senior fellow at the Stimson Center.
“It’s putting stress on the system that we haven’t seen before,” Grieco ...
An Iranian military commander says the United States and Israel can no longer start a war whenever they wish and end it at any time, asserting that “there is no end to this war.”
In a message released on Monday, commander of Iran’s Khatam al Anbiya headquarters Major General Ali Abdollahi reacted to recent remarks by US President Donald Trump who told Republican lawmakers at his golf club near Miami, “I think you’ll see it’s going to be a short-term excursion.”
Abdollahi condemned the US-Israeli aggression, which was initiated on February 28 in violation of all international laws and human rights standards by assassinating the former Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei and several commanders, and killing many civilians.
“Today, it is no longer the case that the United States and the Zionist regime can start a war against us whenever they wish and end it whenever they choose,” he said.
He stressed that Iran has never been “the initiator of any war ...
The Islamic Revolution Guards Corps (IRGC) has announced that around 100 American “terrorists” have been injured in a retaliatory attack by Iran's navy on al-Udairi base in Kuwait.
The IRGC said in a statement that its naval forces carried out "glorious and powerful" operations against the remnants of the American forces in West Asia.
According to the statement, the operations included “two heavy and simultaneous missile strikes” on the al-Udairi helicopter base, which left “more than 100” American soldiers injured.
The wounded were transferred to al-Jaber and Al-Mubarak hospitals, it said.
The statement added that Iranian missiles and drones also struck the key infrastructure of the US base at Mina Salman port in Bahrain, which serves as the headquarters of the US Fifth Fleet, and also hosts critical systems like the Leeds.
“The Patriot camp and the equipment warehouses, as well as the accommodation and gathering centers of American terrorist soldiers at the two naval bases of ...
