Nirmala Sitharaman Warns of Global Economic Risks from US-Iran Conflict
US-Iran war now a systemic tremor, not just a regional conflict: Nirmala Sitharaman

Image: hindustantimes
Indian Finance Minister Nirmala Sitharaman has warned that the ongoing US-Iran war has escalated beyond regional concerns, now threatening the global economic system. She highlighted risks to energy supply routes and emphasized that the world is entering a phase of 'permanent volatility' due to various geopolitical disruptions.
- 01The US-Iran conflict poses systemic risks to the global economy.
- 02Sitharaman described the current global landscape as one of 'permanent volatility'.
- 03Public debt has surged globally, with the US projected to have a debt-to-GDP ratio of 125% by 2025.
- 04India's macroeconomic fundamentals remain strong, with a debt-to-GDP ratio projected to decline.
- 05The UN Security Council is addressing the crisis, with calls for de-escalation.
Advertisement
In-Article Ad
During a speech at the National Institute of Public Finance and Policy in New Delhi, Indian Finance Minister Nirmala Sitharaman expressed grave concerns regarding the ongoing US-Iran war, characterizing it as a 'systemic tremor' that threatens the global economic framework. She noted that the conflict has escalated beyond regional security issues, jeopardizing critical energy supply routes and altering geopolitical dynamics. Sitharaman pointed out that the global economy is facing 'permanent volatility', moving away from isolated shocks to a more unstable environment. She highlighted the significant disruptions caused by recent events, including the COVID-19 pandemic and the Russia-Ukraine war, which have led to trade fragmentation and downward revisions in growth forecasts. Additionally, she emphasized the alarming rise in global public debt, projected to exceed $106 trillion, with advanced economies facing limited fiscal space. In contrast, India maintains a relatively low debt-to-GDP ratio of 81%, with projections for further decline. The US-Iran conflict continues to escalate, with military actions intensifying, raising global concerns about further destabilization.
Advertisement
In-Article Ad
The escalation of the US-Iran conflict could lead to increased energy prices and economic instability, affecting consumers and businesses in India.
Advertisement
In-Article Ad
Reader Poll
How concerned are you about the economic impact of the US-Iran conflict?
Connecting to poll...
More about United Nations Security Council
Bahrain Proposes Revised Security Council Draft on Strait of Hormuz, Avoiding Force Language
economictimes_indiatimes • Apr 7, 2026

Bahrain Takes Unprecedented Diplomatic Action Against Iran at UNSC Amid Ongoing Conflict
The Indian Express • Apr 6, 2026
UAE Supports Bahrain's Call for UNSC Action on Strait of Hormuz Amid Rising Tensions
The Economic Times • Apr 6, 2026
Read the original article
Visit the source for the complete story.




