Interconnected wars in Europe and the Middle East ripple through global markets
Russia's invasion of Ukraine and the U.S.-Israel strikes in Iran have triggered a cascade of military and economic effects that reach dozens of countries across three continents.
Russia's full-scale invasion of Ukraine, controlling about one-fifth of the country, continues to generate hundreds of thousands of casualties on both sides, while cease-fire attempts have repeatedly collapsed. In February 2026, the United States and Israel struck Iranian sites, killing Supreme Leader Ali Khamenei and dozens of officials, which led Iran to launch missile and drone attacks across the Middle East. The fallout has drawn in a wide array of states: Iranian strikes have targeted U.S. bases and embassies in the Gulf, NATO aircraft have downed Iranian drones over Turkey, and the Houthis have added missile attacks on Saudi oil tankers, reviving the Red Sea shipping crisis.
A coalition formed to safeguard maritime routes includes Turkey, Egypt, Pakistan, Bangladesh, Jordan, Kuwait, Bahrain, Qatar, Djibouti, Somalia, Sudan and the Comoros. Ukraine's experience with counter-drone tactics is now being exported to Gulf nations, while the UK and France have deployed warships to the Mediterranean as tensions rise.
Why it matters
These linked conflicts disrupt global trade, energy supplies and security arrangements, affecting economies worldwide.
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