President Trump's expanding war against Iran risks a global recession as Saudi Arabia joins the conflict.
The administration announced that the conflict against Iran is escalating across the Middle East, involving at least five other countries. President Trump launched the war in late February, and it has expanded to include airstrikes in Iraq and Saudi Arabia. Saudi Arabia joined the user's military efforts, carrying out airstrikes against Iranian-backed militias in Iraq, killing at least 20 fighters. This expansion risks disrupting global energy supplies and prices, potentially triggering a global recession. While President Trump said the US and Saudi militaries coordinated with the Iraqi government, Iraqi leaders denied having prior knowledge. The conflict has also impacted the Saudi economy, with the kingdom's GDP decreasing by nearly 5% in the second quarter of 2026. Saudi Arabia is also planning a major military offensive against the Houthi militia in Yemen. This move risks collapsing a tenuous ceasefire and reopening a conflict that has already killed hundreds of thousands of people. The administration's war against Iran continues to be brokered by Pakistan and Qatar, but peace negotiations have shown little progress.