#global-economy

#global-economy

In less than 36 hours since the blockade was implemented, U.S. forces have completely halted economic trade going into and out of Iran by sea. This blockade has effectively brought Iran's economy to a standstill, as it relies heavily on international maritime trade.

The war in the Middle East will have certainly a huge impact for the Swiss exports because it represents 10% of the total Swiss watch exports, so it's quite substantial.

"This is a system shock," says Nigel Green, CEO of deVere Group. "You have a material energy supply disruption and a structural shift toward fragmentation."

The Iranian choke hold on the Strait of Hormuz evidently had a lot to do with it. By cutting off roughly one-fifth of the world's oil supply over the past five weeks, Iran's blockade of that narrow waterway caused an energy crisis and fears of a global recession that the White House could not abide for long.

"We worked hard," WTO Director-General Ngozi Okonjo-Iweala said, adding that the US and Brazil in particular "need more time" to work out their differences over the agreement to impose levies on cross-border online orders.

"It's like a storm closing in on us, and every week brings a new cloud," said John Aylieff, WFP's country director in Afghanistan. "The latest big, dark cloud is the Iran crisis."

The ongoing conflict between the US and Israel against Iran is creating significant challenges for Gulf Arab nations, which are already feeling the economic strain from rising tensions and instability in the region.

As he headed to France, Rubio said it was in the 'interest' of the G7 to 'step up' and help with the Strait of Hormuz, which Iran has effectively blockaded, causing fuel prices to soar.

The US-Israeli war on Iran will have a profound impact on the global energy markets, sending the price of Brent crude oil soaring to nearly $120 per barrel.