The global economy is under mounting strain following joint U.S.-Israeli attacks on Iran that have triggered sharp increases in commodity prices and stock market declines. Over the past month, retaliatory strikes across Persian Gulf refineries, pipelines, and gas terminals have disrupted energy flows, forcing developing nations to ration fuel and expand subsidies for the poor. The International Energy Agency described the resulting 20 million-barrel-per-day shortfall as the largest oil supply crisis in history.

Iran’s closure of the Strait of Hormuz, through which one-fifth of global oil passes, has crippled exports from Kuwait and Iraq. A separate Iranian strike on Qatar’s Ras Laffan LNG terminal destroyed 17 percent of its export capacity. Brent crude prices have surged to over $105 per barrel, while fertilizer and helium supplies have also been disrupted. Economists from MIT, Harvard, and the IMF warned that the conflict could trigger stagflation and reduce global growth by up to 0.4 percent.

Experts caution that recovery will be slow, with Gulf energy infrastructure heavily damaged and food prices rising due to fertilizer shortages. The crisis threatens to deepen inequality, hitting poorer nations hardest.