Israel Gaza Conflict 2025 and Iran’s Economic Turmoil: A Global Macroeconomic Threat

They’ve shaken hands, but their fists remain clenched. As 2025 draws to a close, a series of escalating conflicts across the Middle East, Africa, and Southeast Asia is pushing global market stability to the brink. From the humanitarian collapse in Gaza to the rapid deterioration of Iran's economy, the geopolitical landscape is more volatile than ever.

Israel Gaza Conflict 2025: Humanitarian Crisis and Global Backlash

Global aid agencies Oxfam and Doctors Without Borders have issued a scathing condemnation of Israel's continued ban on essential supplies entering Gaza. According to Reuters, reports suggest that food aid is being weaponized, exacerbating a famine that has defined the Israel Gaza conflict 2025. The expansion of military strikes into multiple neighboring countries has further rattled energy markets, leaving the EU particularly vulnerable to price spikes.

Iran’s Economic Freefall and Regional Aftershocks

In Iran, the situation has turned dire as the economy reaches a breaking point. Widespread protests and labor strikes have paralyzed major cities, fueled by hyperinflation and domestic discontent. Simultaneously, Saudi Arabia’s recent strikes on Yemen have reignited fears of a broader regional war, threatening the safety of vital maritime shipping lanes.

Emerging Blocs in the Sahel and Southeast Asia

The unrest isn't limited to the Middle East. In West Africa, the Mali-Niger-Burkina Faso bloc is aggressively reshaping the Sahel, challenging traditional Western influence. Meanwhile, in Southeast Asia, Thai forces have resorted to using shipping containers to blockade a Cambodian village, highlighting the growing use of unconventional tactics in territorial disputes.