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Trump's Iran Conflict Risks Global Economic Fallout

New York Times Business •
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President Trump's military confrontation with Iran threatens to disrupt global oil markets as crude prices surge. The administration maintains the conflict will be brief, but world leaders are preparing for economic fallout that could ripple through supply chains and energy-dependent industries.

Oil prices have climbed sharply since the conflict began, raising concerns about inflation and economic growth. Energy analysts warn that even a short conflict could create supply disruptions if Iran targets shipping routes in the Strait of Hormuz, through which one-fifth of global oil passes daily.

The Federal Reserve is closely monitoring the situation, with economists warning that sustained price increases could force interest rate decisions. Major corporations with operations in the Middle East are already implementing contingency plans, while investors are moving toward defensive positions in energy and commodities.