Iran Crisis Deepens as Global Economy Suffers

Conflict escalates with no end in sight, as U.S. and allies struggle to contain fallout

Mar. 28, 2026 at 8:26am

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The world is now facing price rises and potential shortages for energy and food that are already baked in, even if the conflict between the U.S. and Iran ended tomorrow. Experts warn the crisis is an 'epoch-defining event' that will 'rewire how the world sees the West' as the U.S. and its allies struggle to contain the fallout.

Why it matters

The Iran crisis has become a major geopolitical flashpoint, with far-reaching consequences for the global economy. The conflict has damaged America's standing among its European allies and sparked criticism even from elements of Trump's own political base at home.

The details

The U.S. and Israel launched an assault on Iran on February 28, even as American negotiators were speaking with their Iranian counterparts over a deal to contain the regime's nuclear program. The Trump administration has since sent a 15-point 'peace plan' to Iran, which Tehran has rejected with its own maximalist demands. Both sides believe they have cards left to play, with the U.S. diverting thousands more troops to the region and refusing to rule out a ground invasion.

  • The U.S. and Israel launched their assault at 1:15 a.m. ET on Feb. 28.
  • Trump has extended his deadline for Iran to reopen the Strait of Hormuz until April 6.

The players

Peter Frankopan

A professor of global history at the University of Oxford who believes the Iran crisis is an 'epoch-defining event' with 'epic' consequences.

Ali Vaez

An analyst at the International Crisis Group who was involved in the 2015 nuclear deal, and says the conflict is at a stalemate because the parties are 'fighting different wars'.

Anna Kelly

A White House spokeswoman who said the U.S. military is 'meeting or exceeding all of its benchmarks' and the President's action is 'quickly eliminating short- and long-term threats'.

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What they’re saying

“The Iran crisis is an epoch-defining event, similar in scale to the fall of the Berlin Wall or 9/11. The cascades coming towards us all are epic in scale, even if peace is agreed today.”

— Peter Frankopan, Professor of global history, University of Oxford

“The conflict is at a stalemate because the parties are fighting different wars. The U.S. and Israel are fighting a war aimed at weakening Iran, while Iran is fighting a war to survive.”

— Ali Vaez, Analyst, International Crisis Group

“The United States Military is meeting or exceeding all of its benchmarks, and the President's decisive action is quickly eliminating short- and long-term threats to the United States and our allies.”

— Anna Kelly, White House spokeswoman

What’s next

The U.S. has extended its deadline for Iran to reopen the Strait of Hormuz until April 6, pausing threatened attacks on Iranian energy infrastructure amid talks that the U.S. claims are 'going very well', though Iran has denied any negotiations are taking place.

The takeaway

The Iran crisis has become a major geopolitical flashpoint with far-reaching consequences for the global economy. The conflict has damaged America's standing among its allies and sparked criticism even from elements of Trump's own political base, as both sides appear determined to continue the fight.