Global recession fears as Trump’s Iran war just weeks away from tipping point: ‘We are living on borrowed time’

The global economy is weeks away from recession due to the energy crisis caused by Donald Trump’s war with Iran, according to financial experts.

Nearly 80 countries have already implemented emergency fuel rationing as oil prices threaten to rise above $180 per barrel. This increase is due to the closure of the Strait of Hormuz, the narrow waterway through which about one-fifth of the world’s oil passes.

Economists and traders predict another big rise in energy prices unless the war ends soon. The average price of a gallon of gasoline in the US has risen to $4.50.

This will lead to wider fuel rationing, industrial closures and a sharp slowdown in global growth, according to the Financial Times. JPMorgan predicts oil stocks in advanced economies could approach ‘operational stress levels’ by June.

‘[If the Iran war] “It will not end in the coming weeks and it is not possible to reopen the Strait of Hormuz, I am afraid that an economic recession may be on the table in the world,” EU commissioner for transport Apostolos Tzitzikostas said in a statement to the press.

The approaching summer makes the situation worse. Demand for air conditioning and holiday travel is forecast to sharply increase consumption of crude oil, gasoline, diesel and jet fuel by next month.

Global fossil fuel stocks are decreasing at the fastest pace in history. Australia has pledged $10 billion to increase its supply of fuel and fertilizer reserves, while France says it will ‘change the scope and scale’ of its economic support to protect itself from these negative effects.

“We take this outcome very seriously,” Paul Diggle, chief economist at fund manager Aberdeen, said when asked about rising inflation and a possible recession. ‘We’re living on borrowed time.’

Economic fears come as Trump warns Iran that ‘the clock is ticking’ to reach a peace deal amid reports the president is preparing to resume military strikes.

Nearly 80 countries have already implemented emergency fuel rationing as oil prices threaten to rise above $180 per barrel

The approaching summer also makes the situation worse. Demand for air conditioning and leisure travel is forecast to sharply increase consumption of crude oil, gasoline, diesel and jet fuel by next month

“The Clock is Ticking for Iran and they better act fast or there will be nothing left of them,” Trump wrote. ‘Time is Important! President DJT.’

Trump will meet with his top military advisers in the Situation Room on Tuesday to discuss next steps after rejecting the regime’s latest offer to end the war.

Iranian media reported on Sunday that the Trump administration had offered no meaningful concessions in response to the Iranian regime’s latest overtures, raising fears that the talks could collapse.

Trump had previously stated that the fragile ceasefire was based on “major life support” and described Iran’s counter-offer as “completely unacceptable.”

Fossil fuel shipments through the Strait of Hormuz have ground to a halt since the start of the war two months ago.

Iran’s deployment of speedboats, unmanned aerial vehicles and naval mines makes transporting oil by US-backed tankers dangerous.

Meanwhile, Trump imposed a naval blockade on all Iranian ports in an attempt to force the regime back to the negotiating table.

Negotiations stalled after Trump demanded that Iran end its nuclear program and transfer its entire enriched uranium stockpile to the United States.

A woman carries an Iranian flag during a pro-government campaign in downtown Tehran, Iran, Sunday, May 17, 2026.

Tehran, on the other hand, wants more control over the Strait of Hormuz and refuses to hand over its uranium reserves.

Wall Street pulled back on Monday as fears of a deepening energy crisis weighed on investors.

The Dow Jones Industrial Average fell 290 points and the S&P 500 fell 0.39 percent.