Alert! This Is The Impact Of The Iranian And Israeli War On Indonesia

YOGYAKARTA - The growing tension between Iran and Israel in the Middle East is not only a global concern, but also has the potential to have a significant impact on Indonesia.

Although geographically far away, turmoil in the Middle East region can spread and affect various important sectors in the country, ranging from economy, political stability, to national security.

This article will thoroughly explore various impacts of the war between Iran and Israel that Indonesia needs to watch out for, and how its worst scenario can affect our daily lives.

The conflict between Iran and Israel poses a serious threat to the world economy, with the most obvious impact being the energy market turmoil.

Reporting from the Middle East Monitor page, the Strait of Hormuz, which is a vital track for world oil, is in danger of closing Iran, plus an Israeli attack on Iran's oil infrastructure. This triggers a surge in global oil prices. If the Strait of Hormuz is closed, crude oil prices could reach $150 per barrel.

The surge in oil prices means inflation will skyrocket, especially in the United States. This could force the central bank to raise interest rates and risk triggering a recession.

Fuel prices in the US are likely to spike drastically and weigh on households. Israel itself was also hit, with the gas fields closed and domestic energy costs rising.

Globally, rising energy prices will increase production costs in various sectors and trigger inflation of consumer goods prices.

Oil importing countries like Asia will feel very much about its impact, while Gulf LNG-dependent Europe could fall into recession.

In addition, financial markets are also volatile, with the global stock index plummeting. Experts predict an widespread war could cut global growth and increase inflation, leading to "stagflation".

Israel itself is expected to lose $200 million per day as a result of the war, with potential GDP losses of up to 20% if the conflict is prolonged.

In short, the Iran-Israeli war is an existential threat to the global economy through oil shocks, soaring inflation, and supply chain disruptions. Diplomacy is the only way to avoid this economic storm.

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Based on current information, there are claims and ceasefire efforts announced by US President Donald Trump to end the 12-day Iran-Israeli war.

However, now the war situation between Iran and Israel is still very dynamic and not yet entirely clear, with reports of ongoing attacks despite the announcement of a ceasefire.

The Iran-Israeli war is an existential threat to the US, Israeli and world economies. Oil shocks, soaring inflation, and supply chain disruptions are only part of the impact.

For America, engaging in this war means the skyrocketing price of gasoline, the economic recession, and a weakening global position while the public and its allies oppose the move.

Meanwhile, Israel faces devastating financial and economic costs and can cripple its economy.

Diplomacy, no matter how difficult it is, remains the only way to avoid this economic storm. The United States must learn from its past mistakes in Iraq and Afghanistan, as well as refrain, and pave the way for negotiations.

Now the world is on the brink and only diplomatic wisdom can save it from the brink of destruction.

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