Global economy in the shadow of the Middle East crisis

May 18, 2026 - 21:50

Hamshahri analyzed the surge in energy prices and the global economic crisis, writing that rising geopolitical tensions in the Middle East and the jump in energy prices have now become one of the most significant threats to the US economy.

This threat has not only put pressure on the country’s financial markets but has also increased the likelihood of the Federal Reserve returning to tighter monetary policies and raising interest rates again. Alongside the US, the global economy has also been directly affected by recent developments. The recent meeting between Donald Trump and China’s President Xi Jinping ended without any major agreement, and there was no sign of Beijing’s willingness to help reduce regional tensions. Analysts believe that if the Middle East crisis continues and disruptions in energy routes persist, a new wave of inflation could push major world economies into a new phase of instability—affecting not only financial markets but also global trade and economic growth.

Farhikhtegan: A country or an American military proxy in the region?

Farhikhtegan criticized the miscalculation of the Arab states of the Persian Gulf regarding Iran’s power. The paper wrote that these governments have repeatedly experienced the impact of Iran and the resistance front—once during the war in Yemen, once during the maximum pressure campaign, and again during the recent Ramadan War. Evidence suggests that despite the risks, these states continue to pursue adventurism. The root of this miscalculation, the paper argues, lies in their disbelief: they cannot accept that a superpower like the United States has failed against Iran and the resistance front on the battlefield. They assume Washington simply did not use its full power. Before the Ramadan War, they did not believe Tehran could strike all these states simultaneously. Those who fail to learn lessons eventually wake up when it is too late. The Arab states of the southern Persian Gulf—especially Kuwait—are now exposed to this pattern of misjudgment.

Etemad: An emerging power moving toward a superior position in the global structure

Etemad interviewed Nozar Shafiee, an international relations expert, about Trump’s trip to China. He argued that Iran’s case is no longer a regional issue or a limited dispute but has become a subject of global-level analysis—particularly regarding the role of a regional power confronting a superpower and its impact on global hegemonic dynamics. On the issue of Iranian oil, one of the key topics between US and Chinese leaders, Beijing did not back down. Despite US pressure to halt Iranian oil purchases, Chinese companies continue buying and even actively seek ways to bypass sanctions. Trump has even hinted at possible exemptions for China from certain sanctions. Politically, this indicates that China, as an emerging power, is gradually moving toward a superior position in the global system, while the United States—at least in some areas—is experiencing a gradual decline in influence and power.

Arman-e-Emrooz: Trump shows signs of growing frustration 

Arman-e-Emrooz analyzed the deadlock between Iran and the United States, writing that Trump has shown signs of growing frustration with the ongoing 11‑week crisis. However, he is not inclined to soften his tough diplomatic stance toward Iran. This reduces the likelihood of a quick agreement and raises concerns that the crisis may continue indefinitely, occasionally entering dangerous phases of escalation. During Trump’s trip to Beijing, he largely avoided harsh rhetoric against Iran because he was focused on managing relations with China, a key partner and buyer of Iranian oil. Some analysts argue that if Trump truly seeks a way out of the crisis, he should moderate his tone overall. Others say Trump wants to project a dangerous and unpredictable image to pressure Tehran into concessions on nuclear and other issues. But former US officials who have negotiated with Iran believe this approach is unlikely to succeed.

Siasat-e-Rooz: One should not show mercy to a delusional America 

Siasat-e-Rooz examined US conditions for reaching an agreement with Iran. The paper wrote that newly revealed details of US demands show Washington still behaves like a savage, trying to force Iran into submission. According to the article, Iran will restrain the US. The paper argues that the United States and Israel are driven by delusion, which is why they insist on unreasonable demands. Iran, it says, will not accept these conditions. What the US failed to achieve in two imposed wars against Iran, it now seeks through deceptive negotiations and diplomacy. Trump’s threats, the paper claims, are meant to instill fear and force Iran to comply. But if another war occurs, the situation will be different this time, and there will be no room for tolerance or appeasement.
 

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