The war between Iran, Israel, and the United States is becoming a global catastrophe. The conflict has triggered a massive global energy crisis following the blockade of the Strait of Hormuz, causing crude oil and natural gas prices to skyrocket. If the war doesn't reach an conclusion soon, crude oil prices may touch the level of $150/barrel.
Beyond fuel shortages, there is a risk of a systemic economic collapse affecting international aviation, global food security, and financial markets. One of the largest economies like India and Europe are particularly vulnerable to the oil shock resulting inflationary pressures and potential recessions if not managed properly.
This war will not only affect economic growth but cause long-term socioeconomic shifts, including a permanent exodus of expatriates from the Persian Gulf, and a large number of people across the globe falling into a vicious cycle of poverty and hunger.
India, one of the world's largest economies, is expected to grow at the highest rate, but it will also face many difficulties. If there is a global recession, many will fall into the trap of poverty and exclusion. However, a measured policy intervention can easily mitigate this risk.
Beyond fuel shortages, there is a risk of a systemic economic collapse affecting international aviation, global food security, and financial markets. One of the largest economies like India and Europe are particularly vulnerable to the oil shock resulting inflationary pressures and potential recessions if not managed properly.
This war will not only affect economic growth but cause long-term socioeconomic shifts, including a permanent exodus of expatriates from the Persian Gulf, and a large number of people across the globe falling into a vicious cycle of poverty and hunger.
India, one of the world's largest economies, is expected to grow at the highest rate, but it will also face many difficulties. If there is a global recession, many will fall into the trap of poverty and exclusion. However, a measured policy intervention can easily mitigate this risk.
Rajeev Upadhyay
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