What is the cost of the war between Israel and Iran?
Continuing strikes from both countries are draining their economies.
Israel and Iran are in the second week of the conflict.
As well as inflicting damage, both countries are putting their economies under strain.
Israel has spent billions of dollars on its war on Gaza and has upped its spending considerably with its largely air-based attacks on Iran.
Iran was already struggling with the years of sanctions and now its oil and gas facilities are being hit.
So can the two nations sustain the conflict? Which is likely to be worst affected?
And will the conflict eventually damage the global economy?
Presenter: Neave Barker
Guests:
Aly-Khan Satchu – Geoeconomic analyst and investor
Eyal Winter – Professor of economics at the Hebrew University and Lancaster University
Nader Habibi – Professor of practice in the economics of the Middle East at Brandeis University
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Jazeera
an hour ago
- Al Jazeera
LIVE: US joins Israel's attacks on Iran, bombs three nuclear sites
US President Donald Trump says his country has launched attacks on three nuclear sites in Iran. Israel's attacks on Iran continue, with Israeli forces targeting military facilities and nuclear sites. Iran responds by launching dozens of drones towards Israel.
Qatar Tribune
3 hours ago
- Qatar Tribune
Israeli attacks kill 26 in Gaza
At least 26 people, including more aid seekers, have been killed in the latest Israeli attacks on Gaza. The attacks come as desperate Palestinians under Israeli blockade continue to wait at food distribution points amid an ongoing hunger crisis. Among those killed during Israeli attacks on the besieged enclave on Saturday, 11 were aid recipients at distribution centres run by the United States-and-Israel-backed Gaza Humanitarian Foundation (GHF), which the United Nations has condemned for its 'weaponisation' of aid. Meanwhile, Wafa news agency reported that at least three people were killed and several others wounded by an Israeli drone strike that targeted displaced Palestinians in al-Mawasi, southern Gaza. The report said that the attack targeted a tent sheltering displaced members of the Shurrab family. The tent was located in an area the Israeli military had previously designated as a 'safe zone'. In the last 48 hours, at least 202 people have been killed and 1,037 wounded by Israeli attacks across Gaza. (Agencies) page 5
Qatar Tribune
3 hours ago
- Qatar Tribune
Middle East tensions put investors on alert
Agencies New York Investors are mulling a host of different market scenarios should the US deepen its involvement in the Middle East conflict, with the potential for ripple effects if energy prices skyrocket. They have honed in on the evolving situation between Israel and Iran, which have exchanged missile strikes, and are closely monitoring whether the US decides to join Israel in its bombing campaign. Potential scenarios could send inflation higher, dampening consumer confidence and lessening the chance of near-term interest rate cuts. This would likely cause an initial selloff in equities and possible safe-haven bid for the dollar. While US crude prices have climbed some 10 percent over the past week, the S&P 500 has been little changed as of yet, following an initial drop when Israel launched itsattacks. However, if attacks were to take out Iranian oil supply, 'that's when the market is going to sit up and take notice,' said Art Hogan, chief market strategist at B Riley Wealth. 'If you get disruption to supply of oil product on the global marketplace, that is not reflected in today's WTI price and that is where things get negative,' Hogan said. The White House said on Thursday President Donald Trump would decide on US involvement in the conflict in the next two weeks. Analysts at Oxford Economics modeled three scenarios, ranging from a de-escalation in the conflict, a complete shutdown in Iranian production, and a closure of the Strait of Hormuz, 'each with increasingly large impacts on global oil prices,' the firm said in a note. In the most severe case, global oil prices jump to around $130 per barrel, driving US inflation near 6% by the end of this year, Oxford said in the note. 'Although the price shock inevitably dampens consumer spending because of the hit to real incomes, the scale of the rise in inflation and concerns about the potential for second-round inflation effects likely ruin any chance of rate cuts in the US this year,' Oxford said in the note. The biggest market impact from the escalating conflict has been restricted to oil, with oil prices soaring on worries that the Iran-Israel conflict could disrupt supplies. Brent crude futures have risen as much as 18% since June 10, hitting a near five-month high of $79.04 on Thursday. The accompanying rise in investors' expectations for further near-term volatility in oil prices has outpaced the rise in volatility expectations for other major asset classes, including stocks and bonds. But other asset classes, including stocks, could still feel the knock-on effects of higher oil prices, especially if there is a larger surge in oil prices if the worst market fears of supply disruptions come true, analysts said. 'Geopolitical tensions have been mostly ignored by equities, but they are being factored into oil,' Citigroup analysts wrote in a note. 'To us, the key for equities from here will come from energy commodity pricing,' they said. US stocks have so far weathered rising Middle East tensions with little sign of panic. A more direct US involvement in the conflict could, however, spook markets, investors said.
