12:12 - 17.06.2025

---

June 17, Fineko/abc.az. Reports about the negative impact of the Israeli-Iranian war on the global economy have been published in the world media.

ABC.AZ reports that as a result of the impact of the war on the economy of the world, including the countries of the region, there will mainly be an increase in energy prices.

So, if the war threatens the Strait of Hormuz and the oil routes, oil and gas prices are likely to rise rapidly.

This will lead to an increase in inflation and a violation of the balance of payments, in particular, for energy importing countries (Turkey, Pakistan, India).

Energy exporting countries such as Azerbaijan may see short-term benefits, but if tensions in the region increase, export routes and investor confidence may suffer.

The war will also disrupt trade routes. Sino-European trade routes (the North-South corridor) passing through Iran may be cut off. Logistics, transit and export revenues of Turkey and the South Caucasus countries will decrease. The war will lead to  weakening of tourism, reduce the flow of tourists to neighboring countries (in particular, to Turkey, the UAE, Jordan).

The tourism sector will suffer greatly if the region is marked as a "dangerous region". A panic in financial markets can lead to currency devaluation, a collapse in stock exchanges and an outflow of investors.

Food prices will rise, which may cause social discontent among the population.

By Elmir Murad