Iran War Impact: The risks to the economy and how the government is dealing with them

AMERICAN PRESIDENT Donald Trump’s capricious and whimsical ways of dealing with the global economic order in the past one year have had tempestuous consequences on global trade. The U.S.-Israel joint attack on Iran, which has entered the second month, is a big blow for the global economy. The world is on the brink of a vicious loop of energy and oil shocks leading to firming up of prices and interest rates, and a colossal dent on global growth.

As missiles and drones wreak havoc on the refineries and critical oil infrastructure of both the sides — America’s allies in the Middle East (Saudi Arabia, the U.A.E., Qatar, Bahrain, and Jordan), and Iran itself — crude oil prices have soared, with benchmark Brent crude touching a high of $117 per barrel on March 19, registering a 67% jump over the pre-conflict average price of $70 per barrel in February.