SA warns of economic shock as Iran war expands

Nearly two weeks after the United States and Israel launched coordinated strikes on Iran, thewar is widening across the Middle East, drawing neighbouring states into the fight- ing, rattling global energy markets and exposing deep fractures in the international system. Israeli air strikes have continued inside Iran while Tehran has retaliated against US military assets across the region. The escalation has now spread into Gulf waters and along Israel’s northern frontier, raising fears that the conflict could evolve into a prolonged regional war with far-reaching economic and diplomatic consequences.

Even limited disruption in the strait has historically been enough to rattle global markets and the prospect of sustained instability has heightened concerns about a wider economic shock. The war has also widened geographically. Iranian missile and drone strikes have targeted installations linked to US forces in several Gulf states, while Hezbollah has intensified attacks on Israel from southern Lebanon, opening another front that has displaced hundreds of thousands of civilians.

Attacks on shipping in Iraqi waters have further heightened fears that maritime energy routes could become direct targets as the conflict deepens. Any sustained disruption to tanker traffic in the Gulf would tighten global supply and place additional pressure on already volatile energy markets. The expanding conflict has also reached the United Nations Security Council.

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The council adopted a resolution condemning Iran’s attacks on Gulf states and calling for an immediate halt to hostilities. The measure passed with 13 votes in favour while Russia and China abstained, reflecting divisions among major powers over how to respond to the crisis. Iran rejected the resolution, argu- ing that the council had failed to address the United States and Israeli strikes that triggered the war.

Civilian casualties are rising as the fighting intensifies. Iranian authorities say the bombing campaign has caused extensive damage to civilian infrastructure. According to figures released by Tehran, more than 1 300 civilians have been killed and thousands injured since the attacks began. Iranian officials say nearly 10 000 civilian locations have been damaged or destroyed, including homes, hospitals, schools and markets.

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