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The war in Iran is now sending shockwaves through the global economy.

After oil prices surged Donald Trump has attempted to calm financial markets by suggesting the conflict could soon be coming to an end. Oil prices have since fallen back and global markets have stabilised.

However the situation remains extremely uncertain.

Iran appears to be targeting global energy infrastructure and oil supply routes across the Middle East, creating a major disruption to global oil markets. Production cuts from several Middle Eastern countries and disruption in the Strait of Hormuz have already removed millions of barrels per day from global supply.

In response to the spike in oil prices, the United States is now reportedly considering easing certain oil-related sanctions in order to stabilise global markets.

But this could have major geopolitical consequences.

Because one of the most likely sources of additional oil supply is Russia, raising the possibility that sanctions on Russian oil exports could be relaxed.

If that happens, the war in Iran could end up having unintended consequences for the war in Ukraine and the wider global economy.

In this video I look at what is happening in the oil markets, why production cuts across the Middle East are creating such a major supply shock, and why this crisis could have significant implications for global energy markets and economic stability in 2026.

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#oilprices
#middleeastwar
#globaleconomy
#oilshock
#energycrisis
#inflation
#iran
#usa
#trump
#geopolitics
#oilprices
#economy
#breakingnews
#middleeast
#stockmarket
#BrentCrude
#GasPrices