""It's going to look fundamentally different for a while, no matter what," said Steve Hanke, professor of applied economics at Johns Hopkins University. He summed up the new world order to be defined by the winners and losers of this unfolding disaster in three statements: "Good for Russia, good for China, bad for America.""
"Even if the new cease-fire holds and energy prices recede, relief won't come quickly-and the ripple effects of higher prices could still cause global recession or even depression."
"Hanke, who has advised governments from Argentina to Estonia on monetary reform, said many of the problems stem from an initial assumption that the war would be over in a matter of days."
"It appears that the United States went in without accounting for the vast web of commodity supply chains running through the Gulf-and is now watching ripple effects spread into every corner of the global economy."
The Iran War is expected to create lasting changes in the global economy, regardless of a ceasefire. Investors and economists note that supply chains, geopolitical alliances, and economic power dynamics have been permanently altered. The war's unexpected duration has led to significant planning failures, particularly regarding commodity supply chains. Experts predict a new world order that favors Russia and China while disadvantaging the United States. Even with a ceasefire, the economic repercussions, including potential global recession, will persist due to disrupted alliances and rising energy prices.
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