ECONOMIC ASPECTS OF THE CONFLICT BETWEEN THE UNITED STATES OF AMERICA, ISRAEL AND THE ISLAMIC REPUBLIC OF IRAN
ECONOMIC ASPECTS OF THE CONFLICT BETWEEN THE UNITED STATES OF AMERICA, ISRAEL AND THE ISLAMIC REPUBLIC OF IRAN

Summary/Abstract: The conflict involving the United States, Israel and the Islamic Republic of Iran is one of the most significant contemporary geopolitical problems due to its far-reaching economic and security implications for the international community. In addition to its regional dimension, this conflict directly affects global energy security, international trade, financial markets and the effectiveness of economic coercion as a foreign policy instrument. The primary objective of this paper is to examine the economic aspects of conflicts, with particular reference to the application of economic warfare measures, especially economic sanctions, as instruments of political pressure, and to assess their effectiveness from the perspective of economic analysis of law. The study also explores the strategic importance of the Strait of Hormuz for global energy supply, the economic implications of sanctions on the Islamic Republic of Iran and international markets, a well as the role of the United Nations and the Europe-an Union in safeguarding international peace and security through legal and diplomatic mechanisms. The research is based on the application of modeled historical-comparative, statistical as well as descriptive methods, all accompanied by a statistical-economic analysis of the new situation. The analysis includes relevant scientific literature, international legal documents, reports of international organizations and macroeconomic indicators related to inflation, gross domestic product, unemployment, crude oil exports, international trade and energy markets. Special attention is paid to examining the relationship between economic sanctions, geopolitical instability and disruptions in global supply chains, as well as to assessing the legal and economic justification of unilateral and secondary sanctions within the framework of modern international law. The findings indicate that the economic warfare measures imposed on Iran have produced significant economic consequences, including a significant decline in oil exports, reduced economic growth, persistent inflation, depreciation of the national currency, and deterioration of living standards. Yet, despite their significant economic impact, the sanctions have failed to achieve their main strategic goal of changing Iran’s political and security policy regarding its nuclear program. The analysis shows that the effectiveness of economic sanctions depends not only on the severity of the economic pressure, but also on the economic resilience and adaptive capacity of the targeted country. The Islamic Republic of Iran has partially mitigated the impact of the sanctions by substituting imports, increasing domestic production, diversifying trade relations and strengthening economic cooperation with alternative international partners. The research further confirms that any escalation of tensions in the Middle East creates immediate consequences for global energy markets, especially due to the strategic importance of the Strait of Hormuz, through which a significant part of the world’s oil and liquefied natural gas exports are transported. Any disruption to maritime transport in the region results in higher transport costs, increased energy prices, inflationary pressures, greater uncertainty in financial markets, and disruptions to international trade and global supply chains. Consequently, the economic consequences of regional conflicts increasingly exceed the directly affected countries and affect the stability of the global economy. The paper concludes that neither military force nor economic warfare measures alone are sufficient instruments to achieve sustainable conflict resolution. While sanctions can impose significant economic costs on targeted states, they do not necessarily produce the desired policy outcomes and often generate serious humanitarian consequences for the civilian population. Sustainable international stability requires strengthening multilateral institutions, improving diplomatic dialogue, ensuring the consistent application of international law, and developing more effective mechanisms for the peaceful settlement of disputes. The scientific contribution of this study lies in the integration of perspectives from international economics, international law and security studies to provide a comprehensive understanding of the economic consequences of contemporary geopolitical conflicts. The findings can serve as a useful basis for policymakers, researchers, and international institutions concerned with designing more effective and balanced approaches to international economic security and conflict management.

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