Peace deal could buoy world economy, though oil prices are still uncertain

"Global Economic Tensions Soar as Conflict Escalates in the Middle East: Oil Prices Skyrocket Amid U.S.-Israeli-Iran Tensions A brewing conflict between the United States, Israel, and Iran has sent shockwaves through the global economy, with oil prices surging to alarming levels. The escalating tensions have raised fears of a prolonged economic disruption, as the Strait of Hormuz - a critical waterway through which a significant portion of the world's oil supply passes - remains under threat. A long-awaited peace deal was initially expected to ease the crisis, but experts warn that it could take months for oil flows to fully resume, leaving the global economy teetering on the brink of a major downturn. As the situation continues to unfold, investors and policymakers are bracing for the worst, with far-reaching consequences for the world's most vulnerable economies."

The global economy was the clear loser from the U.S.-Israeli conflict with Iran, as oil prices surged. The expected peace deal would reopen the Strait of Hormuz, though a full restoration of oil flows could take months.