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War clouds over West Asia
June 16, 2025
|Business Standard
The risks of economic fallout are high
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Israel's attack on Iran signals an ominous widening of the war in West Asia, threatening a global economy that is struggling to come to terms with the havoc of American President Donald Trump's tariff wars.
The barrage of air strikes that the two nations have exchanged so far has heightened the chances of an escalation into a proxy war between Israel, supported by the United States (US), and Iran-sponsored groupings in the region, the Houthi and the Hamas, with the potential of disrupting critical trade routes and air space on both sides of the Arabian Peninsula.
East of Saudi Arabia, Iran's position at the northern end of the Strait of Hormuz could become a potential choke point should Tehran choose to block the waterway in retaliation for sustained Israeli attacks, given that Oman and the United Arab Emirates at the southern end are allies of the US with military bases and listening posts.
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