The war between the United States, Israel and Iran passed its six-month mark on August 28, leaving a heavy human toll and lasting disruption across global financial markets. What began as a series of strikes in early 2026 has widened into a conflict that reshaped energy prices, shipping routes and investor behaviour worldwide.
The fighting has killed and displaced large numbers of people across the region, according to figures tracked over the six-month period. The war has drawn in the full weight of American and Israeli military power against Iranian targets, and delivered a sustained shock to the world economy.
Oil prices have borne the clearest mark of the conflict. Repeated threats to the Strait of Hormuz, through which roughly a fifth of the world’s oil supply passes, kept crude elevated and volatile through the spring and summer. Each escalation pushed prices higher, feeding through to fuel costs for households and industry.
The disruption to shipping through the strait forced carriers to reroute or pay steep insurance premiums. The pressure on energy costs rippled into daily life and manufacturing across multiple economies, raising input costs and complicating central banks’ efforts to control inflation.
Equity markets swung sharply with the flow of news from the region. Defensive assets drew inflows during periods of intense fighting, while gold gained as investors sought shelter. Bond yields and currency markets reacted to each shift in the military picture and to fears the conflict could close the strait entirely.
The conflict escalated from earlier US-Israeli operations that expanded across the wider Middle East in March. Those strikes marked the opening phase of a campaign that has since hardened into a prolonged war with no clear endpoint.
Six months in, the economic damage is measured not only in oil prices but in displaced populations, disrupted trade and the cost of prolonged uncertainty for governments and companies alike. The strait remains the central pressure point for energy markets.
Diplomatic efforts to halt the fighting have so far failed to produce a durable ceasefire. Markets continue to price in the risk of further escalation as the conflict enters its seventh month.