The Impact of Iran-Israel: Global Implications & Analysis

The attack raises urgent questions about the motivations behind Israel 's actions, Iranian retaliation, and the broader implications for regional and global stability. To explore these issues, RAND experts provide insights into the strategic, diplomatic, and economic dimensions of this unfolding crisis. Drawing from verified intelligence and primary sources, it provides a comprehensive, fact-based breakdown of how both nations are shaping the strategic balance of power in the Middle East — impacting global diplomacy, security policy, and defense alignment. The Iran - Israel confrontation in mid-2025 reflects deeper systemic shifts: the collapse of deterrence norms, regional realignments, and an international environment where great power competition discourages mediation. With President Trump raising alarms about Iran ’ s advancing nuclear capabilities and a concerning rise in missile strikes between these two nations, it’s worth asking: what really fuels this conflict, and how could it shift the global landscape? This report assesses the recent Israel - Iran conflict , following coordinated Israeli strikes on Iranian infrastructure and retaliatory missile attacks targeting Israeli urban centres. Israel launches strikes on Iran after IAEA fallout. Explore causes, nuclear risks, regional instability & impact on India. Full analysis of the 2025 crisis. This report explores the dynamics of the Iran-Israel relationship, its broader impact on global powers, and the historical context of how markets react to geopolitical risks. We provide an analysis of potential scenarios, historical market responses, and what investors can expect in the coming months and years. Israel ’s strikes against Iran ’s nuclear and defense installations and top command structure, Tehran’s retaliatory strikes, and the potential for further escalation have significant implications for transatlantic strategy while war continues to rage in Europe’s east.