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The Economic Times

National / The Economic Times

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The Iran war is dialing US economic danger up to 11

President Trumps strikes on Iran escalate risks for the US economy, compounding existing pressures from overvalued equities, tariffs, persistent inflation, and a fragile fiscal outlook. Rising energy prices, potential disruptions to trade, and geopolitical instability could trigger stagflation and test financial markets. With public debt near record levels and a weakened tariff strategy following the IEEPA ruling, Washington has limited fiscal space to respond. The combination of policy missteps and Middle East tensions raises the likelihood of economic disruption and global market volatility.

4 Mar 2026 4:28 pm