Israel-Iran conflict poses major risk for the global economy – DW – 06/18/2025
The conflict between Israel and Iran could plunge the entire global economy into recession. Iran controls the Strait of Hormuz and has threatened to close one of the world's most important energy shipping routes.
The Strait of Hormuz is a narrow passageway between Oman and Iran that is a critical route for global oil transportation with tankers carrying crude oil from the Gulf Region to Europe, Asia, and North America. Approximately one-fifth of the world's oil supply passes through the Strait of Hormuz. That makes it the second most important oil route after the Strait of Malacca. And its disruption amid the Israel-Iran conflict could lead to significant increases in oil prices and widespread economic consequences.
This video summary was created by AI from the original DW script. It was edited by a journalist before publication.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Int'l Business Times
3 hours ago
- Int'l Business Times
Iran-Israel War: A Lifeline For Netanyahu?
The Iran-Israel war has helped strengthen Israeli Prime Minister Benjamin Netanyahu domestically and overseas, just as his grip on power looked vulnerable. On the eve of launching strikes on Iran, his government looked to be on the verge of collapse, with a drive to conscript ultra-Orthodox Jews threatening to scupper his fragile coalition. Nearly two years on from Hamas's unprecedented attack in 2023, Netanyahu was under growing domestic criticism for his handling of the war in Gaza, where dozens of hostages remain unaccounted for. Internationally too, he was coming under pressure including from longstanding allies, who since the war with Iran began have gone back to expressing support. Just days ago, polls were predicting Netanyahu would lose his majority if new elections were held, but now, his fortunes appear to have reversed, and Israelis are seeing in "Bibi" the man of the moment. For decades, Netanyahu has warned of the risk of a nuclear attack on Israel by Iran -- a fear shared by most Israelis. Yonatan Freeman, a geopolitics expert at the Hebrew University of Jerusalem, said Netanyahu's argument that the pre-emptive strike on Iran was necessary draws "a lot of public support" and that the prime minister has been "greatly strengthened". Even the opposition has rallied behind him. "Prime Minister Benjamin Netanyahu is my political rival, but his decision to strike Iran at this moment in time is the right one," opposition leader Yair Lapid wrote in a Jerusalem Post op-ed. A poll published Saturday by a conservative Israeli channel showed that 54 percent of respondents expressed confidence in the prime minister. The public had had time to prepare for the possibility of an offensive against Iran, with Netanyahu repeatedly warning that Israel was fighting for its survival and had an opportunity to "reshape the Middle East." During tit-for-tat military exchanges last year, Israel launched air raids on targets in Iran in October that are thought to have severely damaged Iranian air defences. Israel's then-defence minister Yoav Gallant said the strikes had shifted "the balance of power" and had "weakened" Iran. "In fact, for the past 20 months, Israelis have been thinking about this (a war with Iran)," said Denis Charbit, a political scientist at Israel's Open University. Since Hamas's October 7, 2023 attack on Israel, Netanyahu has ordered military action in Gaza, against the Iran-backed Hezbollah group in Lebanon and the Huthis in Yemen, as well as targets in Syria where long-time leader Bashar al-Assad fell in December last year. "Netanyahu always wants to dominate the agenda, to be the one who reshuffles the deck himself -- not the one who reacts -- and here he is clearly asserting his Churchillian side, which is, incidentally, his model," Charbit said. "But depending on the outcome and the duration (of the war), everything could change, and Israelis might turn against Bibi and demand answers." For now, however, people in Israel see the conflict with Iran as a "necessary war," according to Nitzan Perelman, a researcher specialised in Israel at the National Centre for Scientific Research (CNRS) in France. "Public opinion supports this war, just as it has supported previous ones," she added. "It's very useful for Netanyahu because it silences criticism, both inside the country and abroad." In the weeks ahead of the Iran strikes, international criticism of Netanyahu and Israel's military had reached unprecedented levels. After more than 55,000 deaths in Gaza, according to the health ministry in the Hamas-run territory, and a blockade that has produced famine-like conditions there, Israel has faced growing isolation and the risk of sanctions, while Netanyahu himself is the subject of an international arrest warrant for alleged war crimes. But on Sunday, two days into the war with Iran, the Israeli leader received a phone call from European Commission President Ursula von der Leyen, while Foreign Minister Gideon Saar has held talks with numerous counterparts. "There's more consensus in Europe in how they see Iran, which is more equal to how Israel sees Iran," explained Freeman from the Hebrew University of Jerusalem. German Chancellor Friedrich Merz said Tuesday that Israel was doing "the dirty work... for all of us." The idea that a weakened Iran could lead to regional peace and the emergence of a new Middle East is appealing to the United States and some European countries, according to Freeman. But for Perelman, "Netanyahu is exploiting the Iranian threat, as he always has."
Int'l Business Times
3 hours ago
- Int'l Business Times
Trump On Iran Strikes: 'I May Do It, I May Not Do It'
President Donald Trump said he was considering Wednesday whether the United States will join Israeli strikes on Iran and said that Tehran had reached out to seek negotiations on ending the conflict. Speaking as he watched installation of a new flagpole at the White House, Trump added that his patience "had already run out" with Iran and repeated his call for the Islamic republic's "unconditional surrender." "I may do it, I may not do it. I mean, nobody knows what I'm going to do," Trump told reporters on the South Lawn when asked if he had decided whether to launch US air strikes. "I can tell you this, that Iran's got a lot of trouble, and they want to negotiate." Trump said Iran had even suggested sending officials to the White House for talks on Tehran's nuclear program in a bid to end Israel's air assault, but added that it was "very late." "I said it's very late to be talking. We may meet. There's a big difference between now and a week ago, right? Big difference," Trump added. "They've suggested that they come to the White House. That's, you know, courageous, but it's, like, not easy for them to do." When asked if it was too late for negotiations, he said: "Nothing is too late." Trump had favored diplomatic route to end Iran's nuclear program, seeking a deal to replace the one he tore up in his first term in 2018. But since Israel launched strikes on Iran six days ago Trump has moved in behind the key US ally and is now weighing whether to use US military power against Tehran too. Trump issued a series of bellicose statements on social media on Tuesday, saying that Iran's supreme leader Ayatollah Ali Khamenei was an "easy target" and calling for Iran's "UNCONDITIONAL SURRENDER!". Khamenei said Wednesday the nation would never surrender and warned the United States of "irreparable damage" if it intervenes. Asked on Wednesday what he meant by his earlier statement, Trump replied: "Two very simple words. It's very simple -- unconditional surrender." "That means I've had it, okay? I've had it. I give up, no more, we go and blow up all the nuclear stuff that's all over the place," Trump said. Trump meanwhile backed Prime Minister Benjamin Netahyahu to continue Israel's offensive against Iran. Iran has hit back with salvos of ballistic missiles. Asked what he had told Netanyahu in a call on Tuesday, he said: "Keep going. I speak to him every day, he's a good man, doing a lot." The US president however rebuffed Russian President Vladimir Putin's offer to mediate in the Israel-Iran conflict, saying Russia should end its own war in Ukraine first. "He actually offered to help mediate, I said 'do me a favor, mediate your own. Let's mediate Russia first, okay? You can worry about this later," Trump said. Iran later denied it had offered to send officials to Washington. "No Iranian official has ever asked to grovel at the gates of the White House," Iran's mission to the UN said in a post on X. "The only thing more despicable than his lies is his cowardly threat to "take out" Iran's Supreme Leader."
Int'l Business Times
3 hours ago
- Int'l Business Times
Trump Contemplating Axing Tulsi Gabbard's Office, Saying She 'Doesn't Add Anything' to His Admin: Report
President Donald Trump reportedly revealed to close aides that he has been considering dissolving the office ran by the Director of National Intelligence, a position currently held by Tulsi Gabbard, alleging that she does not add to his administration. The idea stemmed from a brief video posted to social media by Gabbard earlier this month, in which the former Hawaii representative rattled off about how "political elite and warmongers" are "carelessly fomenting fear and tensions between nuclear powers," adding that the world is "on the brink of nuclear annihilation." The video, which had not been approved by the White House, reportedly infuriated President Trump, who believed Gabbard was expressing disapproval of Israel's incoming attacks on Iran. The 47th president had reportedly just met with pro-Israel members of his administration, and wanted to support the nation's attacks against Iran, reported POLITICO. "I don't think he dislikes Tulsi as a person ... But certainly the video made him not super hot on her ... and he doesn't like it when people are off message," a senior administration official with insider knowledge of the matter told the outlet. "Many took that video as trying to correct the administration's position." The president's frustration with Gabbard reportedly worsened when, while aboard Air Force One, a reporter asked him about her statement that Iran was not attempting to build a nuclear weapon, which she delivered to Congress in March. "I don't care what she said," Trump replied. "I think they were very close to having a weapon." His frustrations have culminated into him increasingly considering dissolving Gabbard's office entirely, according to sources close to the matter. Where this would leave Gabbard within the administration is actively unclear. Currently, as the Director of National Intelligence, she oversees the community of spies working for the United States. A source familiar with how Gabbard and the White House interact told the POLITICO that Trump believes she "doesn't add anything to any conversation." Originally published on Latin Times
