Global Recession: Iran has created a stir across the Middle East, including the UAE, Bahrain, and Dubai, with drone attacks, and continues to target US military bases. There are no signs of this war ending anytime soon.

Is there a sign of a global recession?

Iran War Impact: This is the third week of tensions in the Middle East, sparked by a joint Israeli and US attack on Iran and subsequent retaliatory strikes by Tehran. Iran's oil infrastructure, as well as its top leadership, has been targeted in this conflict. US President Donald Trump has consistently claimed that the war will end soon, but Iran's retaliatory attacks have stunned both Israel and the US.

Iran has created a stir across the Middle East, including in the UAE, Bahrain, and Dubai, with drone attacks, and continues to target US military bases. There are no signs of this war ending anytime soon.

Is a recession coming?

In such a situation, questions arise about the consequences of a prolonged war. According to experts, the possibility of a global recession is growing. According to Neelkanth Mishra, Chief Economist at Axis Bank and Head of Global Research at Axis Capital, if the ongoing tensions in West Asia persist for the next four weeks, the global economy could slide into recession.

Speaking to CNBC-18, he said that disruptions to global energy supplies have already become a cause for concern. If the situation doesn't improve soon, it could worsen. Citing the example of Middle East tensions, he explained that approximately seven percent of global energy supplies have already been affected, posing a significant blow to global economic growth.

How are the situations getting out of control?

According to Mishra, the market has not yet fully reacted to the current situation, as companies and investors hope for a return to normal soon. He says that positive signals will only be seen in the market when tensions subside and uncertainty dissipates. He also pointed out that this crisis is affecting almost every sector.

Estate projects are facing shortages of construction materials, while auto manufacturing is being affected by shortages of carbon black and LNG. Furthermore, a shortage of LPG cylinders has created a crisis for workers in Surat's textile industry. All of this clearly demonstrates that this crisis is not limited to the energy sector, but could have wide-ranging impacts on various sectors and the global economy.