Iran’s involvement in the regional conflict hinders its economic growth efforts, further reduces the value of the Iranian rial, and decreases government income. On February 15th, the Institute of International Finance (IIF) released a report on the Global Economic Fallout of a Regional War. The International Monetary Fund (IMF) has underscored the adverse economic impact of Iran's participation in the Gaza conflict on local and regional businesses. The IMF cautions that if the Gaza conflict escalates, Yemen's economy could shrink by up to 8% in 2024, while Iran and Lebanon might face GDP declines of 5% and 20%, respectively. Furthermore, the potential for trade disruptions in the Strait of Hormuz looms if Iran becomes directly involved in the Gaza conflict.
