The Iran War Has Rewired the Global Economy

The Iran war may quiet down, but the fallout isn't going anywhere. That's the message from the New York Times, which argues that the US-Israel war with Iran has rewired the global economy in ways that a peace framework can't simply undo. With Middle East oil and gas flows sharply disrupted and prices spiking, energy power is shifting: Gulf producers are jostling for influence, Latin American countries are racing to ramp up output, and Russia has been unexpectedly bolstered after US sanctions were eased (though President Trump says don't expect that to last). The UAE's exit from OPEC Plus threatens to shake up the oil cartel, potentially adding more volatility to already jumpy markets.

At the same time, the crisis is turbocharging both dirty and clean energy. Some Asian countries are falling back on coal, but the article notes that cheaper renewables, better batteries, and surging wind and solar are likely to accelerate a longer-term pivot away from fossil fuels—with China positioned as the big winner in everything from turbines to grid tech. Add in a more fragile Strait of Hormuz, higher inflation, slower global growth, and shaken faith in US security guarantees, and the Times makes the case that this conflict has nudged the world toward a more fractured, less predictable economic order. For the on-the-ground details, read the full piece in the New York Times.