SUBSCRIBERS

America’s war, America’s recession

Why the US is particularly poorly positioned to weather a food and energy-price shock

    • The precise magnitude of the shock the US will face as a result of its war of choice in Iran is difficult to predict, given the array of factors at play.
    • The precise magnitude of the shock the US will face as a result of its war of choice in Iran is difficult to predict, given the array of factors at play. PHOTO: REUTERS
    Published Wed, Mar 25, 2026 · 01:51 PM

    [WASHINGTON] There is no good time for an economy to face an energy and food-price shock, but some moments are worse than others.

    And for the US today – with its strained credit market, stretched equity-price valuations, unsustainable public finances and inflationary import-tariff policy – now is about as bad as it gets.

    The precise magnitude of the shock the US will face as a result of its war of choice in Iran is difficult to predict, given the array of factors at play.

    Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

    Share with us your feedback on BT's products and services