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Investors Prosper and Consumers Pay as Iran War Takes Uneven Economic Toll
🇸🇦 Saudi Arabia /Economy & Trade

Investors Prosper and Consumers Pay as Iran War Takes Uneven Economic Toll

From Asharq Al-Awsat · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Ongoing story
  • Six months after the United States and Israel began bombing Iran, the global economy has avoided the worst forecasts of recession and economic catastrophe, although the conflict has affected economies worldwide.
  • Stock markets recovered sharply after an initial sell-off, while artificial-intelligence optimism helped offset pressure on growth.
  • Higher oil and jet-fuel prices have increased travel costs and reduced airline services, putting consumers and travelers under greater financial pressure.

The war’s economic damage has not spread evenly. Investors who stayed in the market have benefited from a sharp recovery, while consumers, travelers and airlines continue to absorb higher energy costs.

The conflict initially unsettled financial markets. Oil prices jumped, Wall Street entered a five-week losing streak, and the Dow and Nasdaq fell into correction territory. The S&P 500 recorded its worst month since 2022. Since reaching a low in late March, however, the Dow has gained nearly 19%, the S&P 500 almost 22% and the Nasdaq 27%.

So far, the global economy has pulled off the financial equivalent of a ‘Mission Impossible’ scene.

— Michael Ashley SchulmanThe Cerity Partners investment strategist described the global economy’s performance six months into the conflict.

“So far, the global economy has pulled off the financial equivalent of a ‘Mission Impossible’ scene,” investment strategist Michael Ashley Schulman said. The International Monetary Fund described the economy as being shaped by opposing forces: the war has strained growth, while enthusiasm over artificial intelligence has helped counter the drag.

The clearest cost has fallen on people who depend on transport. Slower tanker traffic through the Strait of Hormuz pushed Brent crude from about $72 a barrel before the war to nearly $120. Prices have since eased but remain about 20% above their prewar level.

The likelihood that fuel surcharges are going to be rolled back and airfares are going to be brought down is very low over the next few months.

— Brett HouseThe Columbia University economist assessed the outlook for air travel costs.

Jet fuel is expected to average 70% more than in 2025, according to the International Air Transport Association. Airlines have responded with higher fares, increased baggage fees and fuel surcharges. Some have reduced flights or abandoned planned routes. Lufthansa Group cut 20,000 short-haul flights, while Spirit Airlines disappeared after years of financial trouble.

“The likelihood that fuel surcharges are going to be rolled back and airfares are going to be brought down is very low over the next few months,” said Columbia University economist Brett House. “There is less choice for consumers and less competition between airlines.”

There is less choice for consumers and less competition between airlines.

— Brett HouseHouse described the consequences of higher fuel costs for travelers.
About this summary

Originally published by Asharq Al-Awsat in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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