All news updates about the Iran war, no matter how it will end, point to a prospect of a steady and general increase in prices, over and above the increase in the price of energy. This could conceivably include shortages of certain essential items (which in fact would by themselves, lead to further prices increases).

The comparisons being made by sundry observers with past crises suggest a scenario of a stronger inflationary spiral than that experienced in the 1970's or shortly after the start of the present century (not to mention the Ukraine war). However it is still too early to decide about this. Actually there are huge economic interests which stand to gain if the prevailing pessimism continues to grow.

The situation is affecting confidence among business decision-makers and commercial corporations. As a result, they will refrain from launching new investments and will slow down projects that are still work in process. Meanwhile, in an economic environment where sentiment about the future has turned negative and given the widespread expectation of price rises, citizens and families are likely to reduce their consumption - they will buy less. This would contribute further to the spread of economic disquiet.

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MILITARY BASES

Some people have expressed surprise at the way by which the Iran war has spilled over into  the Arab Gulf countries which, as states, were not party to the attack on Iran carried out jointly by Israel and the US. Personally, I was surprised by their surprise at this having happened. Was there not the obvious possibility right from the start that Iran would retaliate the way it did?

The people running that country were brought with their backs against the wall, as a substantial number of them were assassinated. They had "nothing" to lose for they knew that the war had been launched with the aim of eliminating them all. They couldn't possibly mount an attack against US territory (it was too far away)... but then they could attack instead the military bases run by the US in countries bordering Iran.

Which is what they did, in line as well with the claim that these countries, by agreeing to host a US military base in their territory, were in reality providing support for the US and Israeli military effort. Right from the start, the chances were huge that unless the Iranian regime collapsed under the first wave of attacks, the war would spread the way it did.

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FROM THE AIR

Whoever in "modern" war controls the skies has the best means by which to inflict losses on the enemy. It's a babaric method of attack, involving planes and missiles despatched to drop bombs on enemy territory... supposedly to target military installations, but in reality to rain explosives no matter where, including residential zones.

In Malta we had an early experience of this kind of attack... in the 1940's, when the war "tactics" of aerial bombing were still being developed. Technological "improvements" since those days have made them more deadly, especially by way of civilian casualties. As happened in Malta though, today as well, aerial bombing by itself provides no guarantee that the country under attack is going to surrender or be defeated.