Israel–Iran Conflict Could Trigger Economic Maelstrom Affecting Millions

 Israel–Iran Conflict Could Trigger Economic Maelstrom Affecting Millions

The ongoing conflict between Israel and Iran threatens to severely disrupt global markets and may cascade into a broader geopolitical and economic crisis. At the heart of this threat lies the Strait of Hormuz, a critical chokepoint for global oil flows, which Iran is considering closing in response to Israeli military actions.

Iran–Israel Conflict Might Upend the World’s Oil Markets

Geopolitical tensions are once again shaking world markets. The confrontation between Iran and Israel, if escalated further, could drastically impact global oil supply, sending prices soaring and reviving oil’s title as “black gold.”

▪️ The Strait of Hormuz, gateway from the Persian Gulf, handles 20% of the world’s oil exports
▪️ Iran is threatening to close the strait in retaliation for Israeli military strikes
▪️ A closure would represent a global energy shock with vast ripple effects on industry and supply chains

According to reports,  Sardar Esmail Kowsari, Commander of the Iranian Revolutionary Guard, has declared that Iran would make “the best decision with determination” regarding the potential closure of the Strait.

Security analyst Claude Moniquet warned that this move would be “a disaster for Europe,” impacting energy markets across the globe. A 20% reduction in global oil flow could spark:

• A massive spike in oil prices

• Disruptions to global supply chains

• Industrial slowdowns in Europe and Asia

Oil Already Reacting as Risk Mounts

The markets are already pricing in these geopolitical risks. Since the early bombings:

▪️ Oil futures have surged past $70, reaching as high as $77
▪️ Volatility is expected to increase as conflict risk grows
▪️ Crude oil prices could skyrocket if military escalation shuts down transport routes

The possibility of regional expansion—as other nations act to counterbalance the fallout of a closure—could magnify the economic turmoil, potentially triggering a global recession.

A Global Flashpoint with Far-Reaching Consequences

The ultimate outcome hinges on:

• Iran’s willingness to escalate

• Its military capacity to block the Strait of Hormuz

• The international community’s response to preserve oil flows

While nothing is certain, the risk of an economic chain reaction is substantial. Even short-term disruptions in Hormuz could cause multi-billion-dollar losses, especially in energy-dependent industries.

Bottom Line: The world watches closely as a regional military conflict risks morphing into a global economic crisis. A single act—like the closure of a vital oil corridor—could send shockwaves through financial markets, energy infrastructure, and geopolitical alliances.

@ Newshounds News™
  Source: Bitcoin.com

TIDBIT FROM MILITIAMAN

 Militia Man  

Just because Iraq looks ready, sounds ready, is ready, does the IMF, World Bank, US Treasury, Bank of International Settlements feel they're ready? 

...It's about Iraq but it's not all about Iraq...It isn't just Iraq pushing the button.

  It's going to have to be something to the effect of that inter-connectivity I've been talking about.  They need to be allowed to be able to do that...Bottom line is what we see with all the things collectively to this date shows Iraq is ready...A lot of pressure on everybody to make sure they get it right.

WALKINGSTICK: For them to make this report is very good for what we're looking for!!! #iraqidinar

 

Iran urges Iraq to block Israel’s use of airspace

Tehran – Iran’s President Masoud Pezeshkian urged Iraq on Sunday to block Israel from using its airspace and territory to launch attacks on the Islamic republic.

“We emphasise that the Iraqi government must exercise greater vigilance and protection of its borders and airspace so that Iraqi territory is not misused against the Islamic Republic of Iran,” said Pezeshkian in a call with Iraqi Prime Minister Mohammed Shia al-Sudani, according to the Iranian presidency website.

TIDBITS FROM SANDY INGRAM

  Sandy Ingram 

 Iraq is witnessing a remarkable surge in stability and security...positioning Iraq as a regional hub for trade and investment.

---

This is breaking news reported by the New York Times..."U.S. to Reduce Diplomatic Presence in Iraq amid rising tensions." 

 This move comes as tensions in the Middle East are rising and talks between the US and Iran over nuclear weapons appears to be going nowhere ...

We are deeply concerned about this latest announcement.  Iraq is caught in the middle.  Its government wants good relationships with both the United States and Iran but that's becoming harder as the two countries drift further apart...Stay positive, this too will pass.

https://dinarevaluation.blogspot.com/2025/06/tidbit-from-sandy-ingram_01783361014.html

CBI CONTACT: Are they (IRAQ) going to retrieve our dinars? #iraqidinar #iraq @DINARREVALUATION ​

 

Drones shot down in Iraq by International Coalition

 Anbar – Two drones launched from Iran towards Israel were shot down over Iraq by the US-led international coalition to defeat the Islamic State group, two Iraqi military officials told AFP on Sunday.

“The international coalition at Ain al-Asad (military base) shot down two Iranian drones that were en route to Israel,” one official said, referring to an Iraqi airbase housing foreign troops in western Iraq.

The drones were shot down overnight Saturday to Sunday, he added, speaking on condition of anonymity to discuss the matter.

The other official said the drones were targeted because they entered the defensive perimeter of the anti-jihadist coalition, where troops are instructed to engage any potential threat.

Israel on Friday launched unprecedented strikes on Iran, hitting military and nuclear sites as well as residential areas. In response, the Islamic republic has fired hundreds of drones and ballistic missiles at Israel.

Several missiles and drones have fallen in Iraqi territory, mostly in the desert, without causing casualties.

An “explosive drone” was shot down by the coalition at Ain al-Asad on Friday, according to an Iraqi official.

The government in Baghdad is a close ally of Tehran, but also a strategic partner of Iran’s arch-foe the United States, which has some 2,500 troops in Iraq as part of the anti-jihadist coalition.

Baghdad and Washington have agreed on a timetable for the gradual withdrawal of the coalition’s forces.

By September, the troops are scheduled to leave bases in federal Iraq — including Ain al-Asad — and by the end of 2026, they are set to withdraw from the autonomous Kurdistan region in northern Iraq.

Influential Iraqi armed group Kataeb Hezbollah on Sunday warned the United States about direct involvement in Israel’s attack on Iran.

“The Islamic republic needs no military support from anyone to repel the criminal Zionist entity — it has the men and capabilities to put (Israeli Prime Minister Benjamin) Netanyahu in the dust,” it said in a statement.

“We are closely monitoring the movements of the American enemy’s army. If America intervenes in the war, we will act directly and without hesitation against its interests and bases throughout the region.”