New Economy

Iran War Shockwaves Threaten More Damage to US Allies

From Europe to East Asia, the high price of the war may soon get even higher.
A plume of smoke rises after a US-Israel strike on Tehran on March 3. Thousands have been killed in Iran and Lebanon in one month of war.Photographer: Atta Kenare/AFP
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When President Donald Trump declared his trade war on the world, it was America’s allies — countries accustomed to thinking the US had their back — that ended up taking some of the hardest hits. A year later, he’s started an actual war and the same pattern is repeating, except things look worse.

A month into the US-Israel war with Iran, economic fallout is spreading fast — sending governments around the globe into damage control or outright crisis mode. There are disruptions to commodities like fertilizers and metals, but the biggest is to energy supplies from a region that provides a large share of the world’s crude and natural gas.