How the World Is Paying the Price for the War on Iran
•March 9, 2026
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Why It Matters
The conflict risks a sustained energy shock that would drive inflation, raise borrowing costs and depress growth worldwide, forcing governments and central banks into difficult fiscal and monetary choices and threatening higher consumer prices and disrupted global supply chains.
Summary
Air strikes and missile attacks tied to the war on Iran have struck military and energy infrastructure across the Middle East—from drone and military bases in Iran to refineries in Bahrain, shipping routes in the Strait of Hormuz and strikes into Lebanon, Israel and Gulf states—with NATO air defenses even intercepting an Iranian ballistic missile over Turkey. The violence prompted a dramatic one-day oil surge toward $120 a barrel, widespread market volatility that wiped roughly $6 trillion off global equity values, and disruptions to fertilizers, palm oil and jet fuel supplies. Emergency talks by G7 finance ministers and a potential release from strategic petroleum reserves helped calm markets, but strikes, shoot-downs and naval deployments continue to escalate. UK officials warned of higher inflation, borrowing costs and consumer energy bills, while global policymakers weigh measures to stabilize supply and limit economic fallout.
Original Description
Oil prices surge as the Iran war throws the whole Middle East into crisis, triggering a global economic shock wave.
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As a new Khamanei son replaced the assassinated father as Iran's Supreme Leader, the bombing and killing goes on - though the US strategic goal remains unclear.
Israel bombed more Hezbollah targets in Lebanon, Gulf countries have issued increasingly angry statements about how they've been hit by Iran, and the economic cost of Trump and Netanyahu's war started to bite.
Energy prices have spiked and so has the cost of government borrowing, with fears of inflation and interest rate rises to come.
In Britain, the government called for de-escalation and tried to calm the markets and the public.
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0:00 - Oil prices surge as Israel-US war triggers global crisis
5:45 - Iran war is worst possible news for UK cost of living
8:18 - Will Trump face backlash in US?
10:55 - Markets can't contain months of war - former WTO chief
15:44 - Backlash and celebration in Iran over new Supreme Leader
20:19 - Israel blows up Beirut financial firm
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