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MIDDLE EAST ON THE BRINK: How US-Iran War Drew Israel, Shook Global Markets and Threatens World Stability


The renewed military confrontation between the United States and Iran has developed into one of the gravest geopolitical crises in recent history, with Israel playing a central role in a conflict that has stretched far beyond the borders of the three countries and placed the entire Middle East on edge.

Recent fighting has seen repeated U.S. strikes on Iranian military targets, while Iran has retaliated with missile and drone attacks against American interests and regional allies across the Gulf, raising fears that the conflict could spiral into a full-scale regional war.

What began as a long-running rivalry over Iran’s nuclear programme, regional influence and security concerns has evolved from years of proxy warfare, covert operations and diplomatic standoffs into direct military confrontation.

For decades, Washington has accused Tehran of pursuing nuclear weapons capabilities, supporting armed groups including Hezbollah in Lebanon, Hamas in Gaza and the Houthis in Yemen, and threatening American allies in the Middle East. Iran has consistently denied seeking nuclear weapons, insisting its nuclear programme is peaceful and that its regional alliances are necessary for its national security.

Israel has remained one of the strongest advocates of military action against Iran, arguing that Tehran’s expanding missile arsenal and nuclear ambitions pose an existential threat to the Jewish state. Israeli intelligence operations, targeted assassinations of Iranian military figures and repeated strikes on Iranian-linked facilities in Syria and elsewhere significantly heightened tensions long before the current conflict erupted.

The war reached a dramatic turning point on February 28 when a coordinated U.S.-Israeli air campaign struck high-value military and strategic targets across Iran.

Among those killed was Iran’s Supreme Leader, Ayatollah Ali Khamenei, whose death was later confirmed by Iranian authorities after days of speculation. The unprecedented strike marked the first time in the Islamic Republic’s history that a sitting Supreme Leader was killed in a foreign military attack, triggering nationwide mourning and dramatically escalating hostilities.

Also killed were several of Iran’s most senior military and security officials, including Defence Minister Aziz Nasirzadeh, Islamic Revolutionary Guard Corps (IRGC) Commander Mohammad Pakpour, former Supreme National Security Council Secretary Ali Shamkhani, Chief of the General Staff Mohammad Bagheri and a number of senior intelligence and nuclear programme officials.

The coordinated strikes dealt a devastating blow to Iran’s military command structure and prompted Tehran to vow what it described as “historic retaliation” against both the United States and Israel. Analysts say the deaths of Khamenei and several senior commanders transformed a long-running shadow conflict into one of the most dangerous open wars in the Middle East in decades.

The situation deteriorated further as Washington and Tel Aviv expanded attacks on key Iranian military installations and strategic infrastructure. Iran responded with waves of missile and drone strikes against U.S. positions and allied interests, while Israel remained on high alert amid fears of broader retaliation.

Beyond the three principal actors, several countries have become directly or indirectly involved. Bahrain, Qatar, Kuwait and Saudi Arabia have assumed strategic importance because they host American military facilities or lie close to critical energy routes. Jordan has intercepted missiles crossing its airspace, Iraq has continued to witness attacks by Iran-backed militias on U.S. forces, Lebanon has remained volatile because of Hezbollah’s activities, while Yemen’s Houthi movement has threatened international shipping in the Red Sea.

Pakistan and Qatar have also participated in diplomatic efforts aimed at reducing hostilities, although repeated mediation attempts and ceasefire understandings have collapsed amid mutual accusations of violations.

At the heart of the crisis lies the Strait of Hormuz, through which a significant proportion of the world’s oil exports passes. Iranian threats to disrupt maritime traffic, coupled with attacks on vessels and military responses by the United States, have repeatedly rattled global energy markets.

Oil prices have surged amid fears of supply disruptions, driving up fuel costs and inflation across many economies while increasing pressure on governments already struggling with economic uncertainty.

President Donald Trump has defended the U.S. military campaign as essential to protecting American forces and allies, safeguarding freedom of navigation and preventing Iran from advancing its nuclear ambitions. His administration argues that sustained military pressure could force Tehran back to the negotiating table under terms more favourable to Washington and its regional partners.

Critics, however, contend that Israel’s long-standing campaign against Iran significantly influenced Washington’s decision to deepen its military involvement. While U.S. officials reject suggestions that America was drawn into the conflict primarily on Israel’s behalf, analysts remain divided over the extent of Israeli influence on the administration’s strategic calculations.

Contrary to suggestions that Washington stands to benefit from the conflict, the war has also imposed significant costs on the United States. Military operations have consumed tens of billions of dollars, American service personnel have been killed and injured, while rising oil prices have contributed to higher fuel costs and mounting economic pressure at home.

The humanitarian consequences have been devastating. Military strikes have destroyed critical infrastructure, displaced thousands of civilians and heightened fears of a wider regional catastrophe. International organisations and world leaders continue to warn that any further escalation could overwhelm already fragile states grappling with conflict, economic hardship and humanitarian crises.

Analysts caution that the repercussions extend far beyond the Middle East. Prolonged instability threatens global trade, aviation, maritime transport, insurance, investment flows and food supply chains. Developing nations that rely heavily on imported fuel remain particularly vulnerable to soaring energy prices, while financial markets continue to react nervously to every major military development in the region.

Despite intermittent diplomatic initiatives, prospects for a lasting ceasefire remain uncertain. The conflict has evolved into a complex struggle involving military power, nuclear diplomacy, regional influence and global economic interests, making it one of the defining international security crises of the decade.

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