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When the United States launched strikes against Iran, the war was expected to be short, decisive and limited. At least, that was the assumption of the Donald Trump administration. But 12 days into it, there are growing signs that the assumption is increasingly wrong, according to a report by The New York Times. The White House miscalculated the resilience of Iran and the broader economic shockwaves the war would generate.
Oil prices surged more than eight percent on Monday as markets reacted to the escalating conflict. Analysts warned that a prolonged confrontation could push crude prices past one hundred and twenty dollars per barrel, triggering a global recession. The Federal Reserve signalled it was monitoring the situation closely, prepared to adjust monetary policy if inflationary pressures mounted significantly beyond current projections.
The geopolitical fallout extended beyond the Middle East. European leaders convened an emergency summit in Brussels to coordinate a diplomatic response, while China called for an immediate ceasefire and offered to mediate between the two sides. Russia, meanwhile, condemned the strikes as a violation of international law and demanded an extraordinary session of the United Nations Security Council to address the crisis before it spiralled further out of control.