The U.S. Started the War. The Rest of the World Is Feeling the Effects.

War in the

Middle East

U.S.-Iran Talks

Israel-Lebanon Truce

Strait of Hormuz

Generals Running Iran

Timeline of War

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The U.S. Started the War. The Rest of the World Is Feeling the Effects.

In just eight weeks, much of the global economy has been knocked sideways. America has mostly been spared from the tumult.

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A farmer in Vietnam preparing plastic containers of diesel he had just purchased.

Credit...

Linh Pham for The New York Times

By

Patricia Cohen

and

Ben Casselman

Patricia Cohen is the global economics correspondent in London. Ben Casselman, the chief economics correspondent, is based in New York.

April 27, 2026,

5:02 a.m. ET

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The fallout from two months of war in Iran is shuttering textile mills in India and Bangladesh, grounding airplanes in Ireland, Poland and Germany, and prompting energy rationing in Vietnam, South Korea and Thailand. The only country, it seems, that has been relatively spared from the economic chaos is the one that started the war: the United States.

While warning signs of a recession are flashing across countries in Asia and Europe, the United States is likely to outperform most of the world’s advanced economies. Growth is steady and unemployment low. “It’s still hard to bet against the U.S. economy,” the Royal Bank of Canada

said

last week.

The United Arab Emirates, one of the world’s richest countries, with sovereign wealth funds that total more than $2 trillion, has asked the United States for a

financial lifeline

in the wake of missile-damaged gas fields and a halt to shipping in the Strait of Hormuz.

In just eight weeks — less time than it takes to age a traditional English fruitcake — the global economic outlook has been knocked sideways.

The worst economic pain will be felt in

poor countries

, where consumers cannot afford higher energy prices, and governments cannot afford to provide aid to offset the costs. And as financing tightens, the cost of desperately needed borrowing for these countries increases.

Image

Vehicles lining up for fuel in Dhaka, Bangladesh, earlier this month.

Credit...

Mohammad Ponir Hossain/Reuters

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