The Trump administration has unilaterally -- without any Congressional debate or vote, of course -- forced Americans into yet another war. This time, the war is a large-scale military campaign against Iran. Was there any groundswell of public support for this war? Did the Congress vote to spend more American tax dollars on another war? Apparently not. According to a March 1 poll from Reuters, only 27 percent of Americans polled said they support the US's new war on Iran. The launch of joint U.S.-Israeli strikes on Iran could lead to economic and financial disruptions that ripple across the countries of the Global South with devastating effects.
This strategic attack was launched based on political and ideological demands, with zero analysis of the global economic consequences. The White House is already scrambling to contain a growing political firestorm over contradicting narratives about what necessitated the operation. Key figures possess a profound ignorance of global systems, dismissing complex realities for simplistic, destructive action. For instance, Secretary of State Marco Rubio indicated that the U.S. went to war with Iran due to Israel's impending attack plans, an admission that implies Prime Minister Benjamin Netanyahu effectively maneuvered the U.S. into the war. This decision-making, driven by ideological fervor, has bypassed any sober assessment of the predictable shockwaves about to engulf the global economy.
The Strait of Hormuz is Closed. The Global Economy is Already Seizing
The administration's gamble has instantly materialized into its worst-case scenario. Iran has retaliated by enacting a selective blockade of the Strait of Hormuz, the single most important energy corridor in the world. This narrow strip of water links the Persian Gulf to the rest of the world, and its closure has instantly severed energy lifelines to Western allies. The result is immediate, global economic trauma. US equity futures and global stocks tumbled, the dollar and gold rallied and oil soared as military strikes intensified across the Middle East. Global bonds also plunge on fears that Trump's "whatever it takes" vow on Iran will fuel energy prices and inflation.
This is not a temporary market blip. It is the first tremor of a far larger economic earthquake. Japan's Nikkei tumbled about 4% and Korea's Kospi suffered its biggest drop ever, plunging by a record 12%. Force Majeure declarations are rippling through global shipping and energy contracts, as the arteries of global trade are severed. The Trump administration's 'move fast and break things' approach to foreign policy has now broken the foundational pillar of global energy security. As one report notes, a longer war that pushed oil past $100 a barrel for an extended period would likely boost inflation, at least temporarily. The window for a quick resolution is slamming shut.
From Gas Pumps to Grocery Shelves: The Unfolding Cascade of Collapse
The White House is already lying about inflation and fuel prices in a panicked response to a crisis they never understood was coming. White House press secretary Karoline Leavitt is insisting that the U.S. economy can withstand a prolonged war against Iran, but gas prices are already skyrocketing. The war with Iran is causing domestic economic challenges for President Trump, including rising gasoline prices and market instability. This is a panicked response to a reality they ignored: energy warfare triggers catastrophic secondary crises.
The administration fundamentally failed to grasp that natural gas is the foundation of modern fertilizer production. A protracted energy crisis will soon trigger catastrophic food inflation and shortages. Meeting the world's growing demand for food, water, and energy in the context of ongoing climate change is one of the greatest policy and technological challenges human societies have ever faced. World food output will have to approach a doubling by 2050 in order to feed a world population