Skip to main content

Consulate strike and the threat of a Iran-Israel war

The Israeli strike on Iran’s consulate in Syria this week has ratcheted up tensions in the region and the threat of an outright conflict between Iran and Israel is at its highest since the war in Gaza began. A full-blown war would not only have result in a major hit to Iran’s own economy, but it would also push up oil prices and could lead to further shipping disruptions. One important point, though, is that shifting alliances within the region mean that the Gulf economies face a much lower risk of being dragged into any conflict with Iran than was the case a few years ago.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access