Zero Carbon Analytics

The US–Israeli military strikes on Iran beginning 28 February 2026, and Iran's subsequent retaliatory actions, had global and regional economic consequences. The conflict led to immediate surges in oil and gas prices, widespread disruptions in aviation and tourism, declines in stock markets, and heightened volatility in financial markets. Analysts projected potential global inflation increases and risks of recession if disruptions persisted, particularly through closures of key shipping routes like the Strait of Hormuz. The strikes included the assassination of Ali Khamenei, Iran's Supreme Leader, which involved millions of dollars in US military equipment, exacerbating economic uncertainties.