As Israel launches a large-scale military offensive against Iran, the Middle East has erupted into conflict, shaking global markets and placing immense strain on the international trade and supply chain ecosystem. Israel’s precision strikes on Iranian infrastructure, and Tehran’s rapid retaliation, have destabilized global energy markets and ignited fears of a full-blown global economic crisis. At the heart of the turmoil lies the Strait of Hormuz, a strategic waterway through which nearly 20% of the world's oil and 25% of global LNG flows daily. Now under the threat of Iranian closure, the mere possibility of restricted access has sent Brent crude prices soaring from $72 to $78 per barrel in June 2025. Analysts from Goldman Sachs warn that if the strait is shut, prices could surge past $150 per barrel, triggering widespread supply chain disruptions and inflationary shocks globally. For the United States, already burdened with $37 trillion in debt and persistent inflation, the implications are severe. Every $10 increase in oil could spike consumer inflation
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Anamika Mishra,
Sub Editor
