Experts warn that the global economy teeters on the brink of recession, largely fueled by the ongoing energy crisis linked to Donald Trump’s conflict with Iran. This dire prediction comes as nations worldwide grapple with the fallout from these geopolitical tensions.
Currently, approximately 80 countries have resorted to emergency measures, imposing fuel rationing to manage the skyrocketing oil prices, which are now threatening to exceed $180 per barrel. The root of this price surge can be traced back to the closure of the Strait of Hormuz, a pivotal channel through which nearly 20% of the world’s oil supply flows.
Economists and market analysts are sounding the alarm, foreseeing a further dramatic rise in energy costs if the conflict remains unresolved. In the United States, consumers are already feeling the pinch, with gasoline prices escalating to an average of $4.50 per gallon.
The repercussions of this situation could be severe, resulting in more widespread fuel rationing, the shutdown of industrial operations, and a significant deceleration in global economic growth. According to the Financial Times, JPMorgan’s forecasts suggest that oil inventories in developed countries might soon reach critical levels, pushing them into ‘operational stress’ by June.
The gravity of the situation was echoed by EU transport commissioner Apostolos Tzitzikostas, who expressed concerns to the media outlet, stating, “If the Iran war does not end in the coming weeks and we don’t have the reopening of the Hormuz strait, I’m afraid a world recession could be on the table.”
The impending summer season exacerbates these challenges, as the increased demand for air conditioning and holiday travel is expected to significantly boost the consumption of crude oil, gasoline, diesel, and jet fuel in the coming month.
Global fossil fuel stockpiles are drawing down at the fastest pace on record. Australia has pledged $10 billion to increase its fuel and fertilizer reserve supply, while France says it will ‘change the scope and scale’ of its economic support to shield itself from the fallout.
‘We are taking that outcome very seriously,’ said Paul Diggle, chief economist at fund manager Aberdeen, when asked about surging inflation and a possible recession. ‘We are living on borrowed time.’
The economic fears come as Trump warns Iran that the ‘clock is ticking’ to reach a peace deal amid reports the president is preparing to resume military strikes.
The global economy is weeks away from a recession due to the energy crisis spurred by Donald Trump’s war with Iran, according to financial experts
A protester reacts next to a burning barricade on a road blocked with stones to prevent traffic from passing during a nationwide transport strike over rising fuel prices in Nairobi on May 18
The looming summer is also making matters worse. Demand for air conditioning and holiday travel is set to push consumption of crude oil, gasoline, diesel and jet fuel sharply higher by next month
‘For Iran, the Clock is Ticking, and they better get moving Fast, or there won’t be anything left of them,’ Trump wrote. ‘Time Is Of The Essence! President DJT.’
Trump is meeting with his top military advisers on Tuesday in the Situation Room to discuss the next steps after he rejected the regime’s latest offer to end the war.
Iranian media reported Sunday that the Trump administration had offered no meaningful concessions in response to the Iranian regime’s latest proposals, raising fears that negotiations could crumble.
Trump previously said the fragile ceasefire was on ‘massive life support’ and dismissed Iran’s counteroffer as ‘totally unacceptable.’
Fossil fuel shipments through the Strait of Hormuz have come to a standstill since the war began two months ago.
Iran has deployed speedboats, drones, and sea mines, making it dangerous to transport oil aboard US-backed tankers.
Meanwhile, Trump has imposed a naval blockade on all Iranian ports in an effort to force the regime back to the negotiating table.
Talks have stalled as Trump demands that Iran end its nuclear program and hand over its entire stockpile of enriched uranium to the United States.
A woman holds an Iranian flag during a pro-government campaign in downtown Tehran, Iran, Sunday, May 17, 2026
Tehran, for its part, is seeking greater control over the Strait of Hormuz and has refused to surrender its uranium reserves.
Wall Street retreated Monday as fears of a deepening energy crisis weighed on investors.
The Dow Jones Industrial Average fell 290 points and the S&P 500 slipped 0.39 percent.
