Iran uses economic pressure as war with the US raises global risks

The ongoing conflict between Iran and the United States under Donald Trump is not just being fought with weapons. It is also being fought through economic pressure. While the US and its ally Israel rely on military strength, Iran is focusing on hurting the global economy to create pressure.

This approach is important because Iran knows it cannot match the military power of the US directly. Instead, it is using its geographic and economic advantages to balance the situation.

One of the main outcomes of this war is that Iran’s nuclear programme has only been slowed down, not stopped. Reports suggest that although airstrikes caused some damage, Iran had already moved important materials before the attacks. This means its nuclear capability may recover faster than expected.

In fact, the conflict may have made things worse. Before the war, there were internal debates in Iran about developing nuclear weapons. Now, after being attacked, many people in the country support strengthening defence, including nuclear capability. This shows how military action can sometimes have the opposite effect.

Iran’s economic strategy changes the battlefield

Iran’s biggest advantage in this conflict is its control over the Strait of Hormuz. This narrow waterway is one of the most important routes for global oil and gas supply. A large portion of the world’s energy passes through it every day.

By creating risks in this area, Iran has managed to disrupt global trade. Many oil tankers have stopped moving through the Strait due to safety concerns. Shipping companies have paused operations, and insurance costs have increased sharply. As a result, global oil supply has been affected.

This has led to a rise in oil prices. In the early days of the conflict, prices increased quickly, and they have continued to stay high due to uncertainty. High oil prices affect not just governments but also ordinary people, as fuel and transport costs increase.

Countries in Asia, including India, China, Japan and South Korea, depend heavily on oil passing through this route. Any disruption here directly impacts their economies. This gives Iran strong leverage, even without using advanced weapons.

Another important development is related to sanctions. Despite the ongoing conflict, the US has eased some restrictions on Iranian oil exports. This has allowed Iran to sell oil and earn money, even while facing military attacks. This situation appears contradictory, as economic pressure is being reduced during a time of war.

Iran is also exploring new trade systems. For example, it is allowing some oil transactions in Chinese currency instead of US dollars. This could weaken the traditional global financial system, which is largely based on the US dollar.

ALSO READ: Iran names key Gulf bridges as potential targets after strike on its major bridge

ALSO READ: Oil prices rise as Donald Trump signals US will not depend on Strait of Hormuz supply

Global impact and risks of prolonged conflict

The economic effects of this conflict are not limited to the region. Rising oil prices are already affecting global markets. Economists warn that if the situation continues, it could slow down economic growth worldwide.

Higher energy prices increase the cost of production in industries and transportation. This can lead to inflation, where the prices of goods and services rise. Central banks may then increase interest rates to control inflation, which can slow down economic activity.

There are also concerns about a possible global recession. If oil prices remain high for a long time, many countries may face economic slowdown. This could lead to job losses and reduced spending.

Even the United States is not completely protected from these effects. While it may not face direct attacks on its mainland, its economy is still linked to global markets. Rising fuel prices and economic instability can affect American consumers and businesses.

Another key factor is time. Iran appears to be using a long-term strategy. Instead of rushing into negotiations, it is allowing economic pressure to build. Each week of disruption increases the cost for other countries involved in the conflict.

This strategy also affects regional politics. Gulf countries, which depend on stable trade and oil exports, are caught in a difficult situation. They want stability but are also part of the larger geopolitical conflict.

At the same time, Iran’s internal system has remained stable despite attacks. The leadership structure continues to function, and its allied groups in the region are still active. This shows that the expected quick collapse of the system has not happened.

In the end, this conflict highlights a key lesson. Military strength alone may not decide the outcome of modern wars. Economic tools, geography, and global connections play an equally important role.

Iran may not be the strongest military power, but it has found ways to increase pressure on its opponents. By targeting global trade and energy supply, it has turned the conflict into a much wider issue.

As the situation continues, the world is watching closely. The longer the conflict lasts, the greater the impact on global stability and economic growth. The real challenge now is not just ending the war, but managing its wider consequences.