President Donald Trump, speaking at the G7 summit in Evian-les-Bains, France, on June 17 stated that escalating military action against Iran could have triggered a “worldwide depression.”
The remarks came just two days after the announcement of an interim memorandum of understanding with Iran on June 15, with a formal signing reportedly scheduled for June 19. Trump made clear, however, that the MOU is not final, leaving the door open for renewed strikes if Iran doesn’t meet his terms.
The economic stakes Trump is referencing
The Strait of Hormuz, which Iran could threaten to close or disrupt in retaliation, handles roughly a fifth of the world’s daily oil supply. When military tensions in the region have escalated, oil prices have spiked toward $120 per barrel.
US and Israeli strikes during the broader conflict have resulted in projected GDP losses for Arab nations between $120 billion and $194 billion, according to available estimates.
