How Iran Could Upend the Global Economy (Level 1)

The war in Iran is growing fast. This war is causing big problems for the world economy. There are three main risks. First, the war changes energy prices. Oil and gas cost much more now. Iran stopped ships from passing through a very important waterway. Many countries buy oil that travels through this water. Now, some countries are keeping their oil and will not sell it to others. Second, the war makes food more expensive. Making food needs energy. Also, farmers use special plant food called fertilizer to grow crops. A lot of this fertilizer comes from the Middle East. Because of the war, fertilizer is hard to get and costs more. Third, there is a risk to money and banks. High prices for food and energy cause inflation. To stop inflation, banks make borrowing money more expensive. This can hurt businesses and cause a money crisis.