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, which has expanded to include airstrikes in Iraq and a coordinated effort with Saudi Arabia. Saudi Arabia recently joined the US in carrying out airstrikes against Iranian-backed militias in Iraq, killing at least 20 fighters. This regional expansion risks disrupting global energy supplies and prices, potentially triggering a global recession. While the administration announced that 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. Furthermore, Saudi Arabia is planning a military offensive against the Houthi militia in Yemen. This move threatens to collapse a tenuous ceasefire, potentially reopening a conflict that has already caused significant casualties and infrastructure destruction in Yemen.