When Missiles Fly, Markets Shiver — The Global Economic Fallout

War in the Middle East doesn’t stay in the Middle East. If America, Israel, and Iran go to war, the shockwaves won’t just be military — they’ll be monetary. 🌍 Global Repercussions: Supply Chain Shock 2.0 A Strait of Hormuz blockade could disrupt 20% of the world’s oil exports. Expect cost spikes in shipping, commodities, and insurance. Dollar Dominance Under Pressure Risk aversion = capital flight to USD. But if the war drags and U.S. deficits widen, the dollar could wobble. That means currency volatility globally. Inflation Spikes Return Energy price surge → Higher transport and food costs → Global inflation revival, right when central banks hoped to pivot. Interest Rates: Stay Higher for Longer The Fed and ECB might delay cuts if oil inflation returns. That’s bad news for global growth and EM capital inflows. 📌 In short: It’s not a regional war — it’s a rerouting of the global economic engine.