Israel Iran Tensions: The Implications for the Global Economy

Implications for the Global Economy and Property Markets as of June 26, 2025 Over the past several weeks, Israeli missile attacks on Iran and subsequent retaliation ramped up geopolitical tensions globally. The Israeli attack on Iran 's nuclear program and military assets and Iran 's responding missile strikes represent a significant escalation in the long-standing tensions between the two nations. RAND experts provide insights into the strategic, diplomatic, and economic dimensions of this unfolding crisis. As the U.S. Weighs intervention in Israel ’s conflict with Iran , Wall Street has been skittish, eyeing the potential fallout for oil prices and inflation. Global leaders are urging both Israel and Iran to seek diplomatic solutions over military maneuvers. There is strong international advocacy emphasizing peaceful negotiations, keenly aware that the consequences of further escalation could be catastrophic economically and humanitarianly. Any move by Iran to close the strait would represent a significant disruption to oil and gas markets, posing a shock to global supply chains and manufacturing output. Reports suggest that insurance premiums and freight costs for vessels in transit through the Strait of Hormuz have already increased markedly. The military escalation between Israel and Iran has renewed fears of a major Middle East conflict, with significant implications for oil markets and the global economic outlook. Israel ’s latest strike directly targeted a key Iranian nuclear facility, while Iranian missiles hit an Israeli hospital, a stark shift in scale from earlier tit-for-tat exchanges. Although a full-blown supply-side. The intensifying conflict between Iran and Israel is raising serious concerns over the safety of global trade routes and energy supplies. As the situation escalates, analysts warn of severe repercussions for the global economy , particularly if strategic maritime passages like the Strait of Hormuz and Bab el-Mandeb are compromised. Economists warned the attack on Iran could result in serious harm for business with one expert warning that it was a “bad shock for the global economy at a bad time.” Here are some of the key.