Global Reactions to Israel’s Strike on Iran – Economic & Diplomatic Fallout Explained
Updated: June 13, 2025 – Following Israel’s massive military operation,
Operation Rising Lion, targeting Iran’s nuclear and military assets, the world is reacting with concern and urgency. This article covers all key regional and international responses, the economic impact, and potential future escalation.
Regional and Global Reactions
Reactions from Middle Eastern Countries
- Saudi Arabia: Called for “maximum restraint,” warning of regional war risk.
- UAE: Closed airspace, pushing for GCC emergency diplomacy.
- Jordan & Iraq: Condemned the airstrikes, prepared for humanitarian fallout.
- Lebanon (Hezbollah): Declared high alert, threatening retaliation.
International Community’s Response
- United States: Denied military involvement but confirmed “intelligence support.”
- China & Russia: Condemned Israel’s actions, warned of instability.
- India, Japan: Urged calm; concerned about energy supply and trade.
Impact on Global Politics and Economy
Middle Eastern Countries React to Israel’s Strike
UAE, Bahrain, and Oman have suspended diplomatic progress with Israel. Qatar is proposing an Arab League de-escalation plan.
The United States’ Position on the Israel-Iran Conflict
While the U.S. remains a close ally to Israel, it is urging both nations to return to diplomacy, warning that further Iranian attacks could force American intervention.
European Nations’ Response to the Escalation
France, Germany, and the UK released a joint statement calling for immediate UN-supervised peace talks. Italy shut down its Tehran embassy.
United Nations’ Role and Statements
The UN Security Council has convened a special session, with Secretary-General António Guterres warning of “catastrophic consequences” if the strike leads to a larger war.
Economic Implications of the Conflict
How the Conflict Affects Global Oil Markets
Brent crude surged to $104 per barrel. With Iran threatening to block the Strait of Hormuz, over 20% of the world’s oil exports are at risk. OPEC+ is scrambling to ensure supply stability.
Future of Diplomatic Relations in the Region
Iran’s diplomatic ties with Gulf neighbors are unraveling. Meanwhile, Israel’s normalization with Saudi Arabia has stalled. Regional mediators like Oman and India may play a key role in peace-building.
Implications and Future Outlook
Potential for Escalation and War
If Iran launches ballistic missiles or activates proxies (Hezbollah, Houthis), full-scale war could erupt across multiple borders.
Impact on Civilians and Humanitarian Concerns
- 500+ Iranian casualties (military and civilian).
- Blackouts reported in Natanz and Qom.
- NGOs blocked from entering strike zones due to ongoing military activity.
Diplomatic Efforts and Peace Initiatives
Switzerland and India have offered to mediate. The UN proposes a temporary no-strike corridor to allow aid to reach affected Iranian provinces.
Could This Strike Lead to a Larger Conflict?
Experts warn that if Hezbollah joins the fray or Iranian missiles target Israeli cities, the region could descend into multi-front war within days.
Humanitarian Impact of the Israel-Iran Escalation
UNHCR estimates over 30,000 civilians displaced. Hospitals in Isfahan, Natanz, and Tehran are near capacity.
Diplomatic Solutions to the Tensions
- Reviving the JCPOA Iran Nuclear Deal.
- Establishing a Middle East Non-Aggression Pact.
- Third-party mediation via the UN, India, or Qatar.
Lessons from Past Regional Conflicts
Past conflicts (e.g., 2006 Lebanon War, 2019 Gulf Crisis) show that early diplomacy and international unity are key to preventing extended warfare and regional collapse.
What to Expect Next?
- Continued Israeli strikes on Syria and Lebanon.
- Possible cyberattacks from Iranian-backed groups.
- Global stock market and oil market fluctuations.