The fragile hope that diplomacy might pull the Middle East back from the brink is fading fast. Fresh Iranian attacks on Kuwait, renewed US military strikes near the Strait of Hormuz and the collapse of momentum in negotiations have underlined a dangerous reality. Economists warn that world economy is becoming increasingly hostage to a geopolitical confrontation that neither side appears ready to resolve.
What began as a regional conflict has evolved into a global economic threat. Oil markets remain on edge, commercial shipping through one of the world's most important energy arteries is still severely disrupted and policymakers from Washington to Brussels are warning that the economic costs are rising with each passing week.
