Middle East Conflict Threatens Global Economy, Underwater Cables at Risk

The ongoing conflict in the Middle East, initiated by Israeli-US strikes on Iran on February 28, is causing a ripple effect on global energy prices and economic concerns.

The conflict has shifted from military strategy to targeting critical energy infrastructure, raising concerns about future global energy supply.

An interview with an expert on international economics discusses the potential long-term impacts of the conflict on global energy markets.

Experts predict that even if the conflict subsides, the energy crisis, particularly concerning prices, will persist for 3 to 5 years due to damaged infrastructure.

Iran possesses multiple strategic economic targets, including underwater internet cables, which could be exploited if attacks on Iran intensify.

The energy crisis is severely affecting various industries, including transportation, fishing, and manufacturing, due to increased costs of oil, natural gas, and related products.

Beyond oil and gas, the conflict impacts the supply of critical materials like aluminum and helium, affecting industries from fertilizer production to advanced manufacturing.

There are indications that the US, under President Trump, may be softening its stance, potentially reducing the intensity of attacks on Iran.

Disagreements between Israel and the US regarding the conflict's objectives and intensity are becoming apparent, with Israel favoring regime change and the US focusing on military capacity reduction.

Many US allies are hesitant to join military operations, putting pressure on the US and potentially leading to a de-escalation of the conflict.

Iran's potential targeting of underwater internet cables in the Strait of Hormuz poses a significant threat to global data transmission, financial systems, and e-commerce.

Iran's control over the Strait of Hormuz, a vital shipping lane, has led to a 95% reduction in traffic, significantly impacting global trade and energy exports.

Oil pipelines and refineries within the GCC countries have been damaged, further exacerbating the energy supply crisis and the impact of the Hormuz blockade.

The conflict's repercussions are felt worldwide, with Thailand bracing for rising prices of oil, electricity, fertilizers, and plastics, alongside increased shipping costs.

The conflict has severely reduced flight traffic and passenger numbers in the Middle East, impacting global tourism and transit hubs.

An attack on land-based cable stations in Saudi Arabia, rather than undersea cables, is presented as an easier and equally devastating option for Iran.

The potential disruption of underwater cables could revert global communication to a pre-internet era, causing widespread chaos in financial and data systems.

Comparing the current situation to the 2022 Russia-Ukraine conflict, experts warn that oil prices could reach $200 per barrel, leading to 7-8% inflation in Thailand.

Despite potential military damage, Iran possesses significant economic weapons, including a vast arsenal of kamikaze drones, capable of inflicting substantial damage.

A noticeable decrease in consumer spending is already evident as people begin to conserve money in anticipation of further economic hardship.