Iran War Triggers Economic Collapse and Global Energy Shock

The ongoing war involving Iran, the United States, and Israel has triggered a severe economic crisis within Iran and caused significant disruptions to global energy markets. Domestically, rampant inflation and collapsing purchasing power have left many Iranian residents unable to afford basic necessities such as rice, chicken, and milk. In response, the Iranian government implemented food vouchers and increased the monthly minimum wage by 60 percent to 166 million rials.

Globally, the conflict has severely impacted maritime trade, with traffic through the Strait of Hormuz declining by 90 to 95 percent. This disruption has driven up the cost of semiconductors, fertilizers, and petroleum products by 20 to 100 percent.

While these energy shocks have increased inflation risks across Asia, several Asian economies have remained resilient. This stability is attributed to a surge in exports driven by the artificial intelligence boom, specifically within the green technology and electronics sectors.