Advanced International Journal for Research

E-ISSN: 3048-7641   •   Impact Factor: 9.11

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Volume 7 Issue 2
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Global Economic Consequences of Contemporary Geopolitical Conflicts

Author(s) Dr. Ashutosh Khatawkar
Country India
Abstract Geopolitical conflicts historically exert profound impacts on the global economy through disruptions in trade routes, commodity markets, financial stability, and supply chains. The ongoing Russia–Ukraine war and the recent escalation involving the United States, Israel, and Iran have intensified global economic uncertainty. Of particular concern is the disruption of the Strait of Hormuz, a strategic maritime chokepoint responsible for transporting a significant portion of global oil and liquefied natural gas (LNG). This paper examines the macroeconomic consequences of these conflicts, focusing on energy markets, global trade systems, financial markets, inflation, and economic growth. Using secondary data, economic reports, and geopolitical risk analysis, the study evaluates how war-driven disruptions propagate through international markets. The research finds that energy price volatility, supply chain fragmentation, food security concerns, and financial instability are the most immediate outcomes. The closure or restriction of the Strait of Hormuz alone threatens nearly one-fifth of global petroleum supply, creating a potential shock comparable to the oil crises of the 1970s. The paper concludes that prolonged geopolitical conflict may accelerate structural changes in global trade networks, energy diversification, and geopolitical alliances.
Keywords Geopolitical conflict, global economy, Russia-Ukraine war, Strait of Hormuz, energy markets, global supply chains.
Field Sociology > Economics
Published In Volume 7, Issue 2, March-April 2026
Published On 2026-03-10
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E-ISSN 3048-7641
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