Iran Conflict Impacts Middle East Economy and Security
The conflict has damaged regional infrastructure and disrupted energy markets via the Strait of Hormuz. States face economic losses and shifting security ties.
The war between Israel and Iran has reshaped Middle Eastern security and energy flows since the February 28 bombing campaign began. Conflict on a second front in Lebanon followed in March, displacing 25% of the Lebanese population. For investors, the disruption to the Strait of Hormuz and energy infrastructure threatens global supply stability and regional economic growth.
### Iran Maintains Grip Despite Infrastructure Damage U.S.-Israeli strikes killed the Supreme Leader and top generals, yet the ruling system remains entrenched under his son's leadership. While the military campaign caused heavy damage to ports and schools, Iran still holds 400 kg of highly enriched uranium. The closure of the Strait of Hormuz remains Tehran's primary deterrent against further escalation.
