Buoyed by AI stocks, global financial markets have largely shrugged off the war with Iran. Yet the conflict’s long-term economic costs are only beginning to emerge, as depleted strategic oil reserves, damaged refining capacity, and rising fuel and fertilizer costs increasingly weigh on lower-income economies.
NEW DELHI—The on-again, off-again US-Israeli war against Iran has underscored the growing disconnect between financial markets and real economic activity. It has also exposed how differently such shocks play out across the global economy.