Mahmoud Ahmadinejad
سپاه پاسداران انقلاب اسلامی
The world is paying the price for America’s war
Conflict with Iran hurts American wallets, but it’s far more devastating for people in the global south.
There’s little doubt that the standoff between the United States and Iran imposes economic costs on Americans.
The price at the pump is up by more than a third since the start of the war, and economists project inflation rising and growth slowing.
According to a recent poll by Ipsos, six out of 10 Americans disapprove of the conflict, and a majority believe US military action in Iran will have a negative impact on their personal financial situations. (Only 1% believe the war will have a positive impact on personal finances, and less than a quarter of Americans surveyed think the conflict has been worth it.)
Meanwhile, a poll conducted across six countries in the global south shows seven out of 10 respondents “very concerned” about the cost of living.
The heightened sensitivity to events in the Gulf can be explained in part by the fact that, unlike the United States, a majority of the world’s nearly 200 countries are net importers of energy.
Asia, in particular, accounts for 40% of the world’s energy demand, making its countries particularly sensitive to price shocks.
Developing economies often lack the fiscal room to subsidize energy for their citizens, who in any case earn far less than Americans do and disproportionately suffer when energy prices spike. Additionally, just as a strong dollar helps American importers, it hurts countries that have to spend more rupees or pesos to buy commodities traded in US dollars.
The oil-rich Gulf economies are usually well-positioned to navigate a global economic shock, but they are, of course, particularly mired in the current conflict. In contrast, the US is geographically blessed with no adversaries nearby. Put together, Washington’s unique advantages mean that its citizens have so far suffered less than most other people around the world.