The global economy could be edging towards a recession as the Iran conflict drags on, former diplomat Sanjay Panda warned, citing mounting economic disruption and uncertainty amid the ongoing war involving the United States and Israel.
Speaking to CNBC-TV18, Panda said, “we have now come to a stage where there is a real economic crisis emerging,” adding that “we might be moving towards a recession” as billions of dollars are being lost daily. The conflict, now in its fifth week, has strained global markets, particularly after the closure of the Strait of Hormuz, a key energy route.
Panda noted that Washington’s mixed messaging reflects a lack of clarity. “Americans are definitely looking for an exit strategy but are a little clueless about how to go about it,” he said, pointing to conflicting signals from Donald Trump on negotiations with Iran.
Omair Anas, Author and Professor at a University in Turkey said the US “maximum pressure” strategy had misfired, with Iran strengthening its bargaining position despite infrastructure damage. He warned that any ground offensive could last “several months or even years,” calling it a potential disaster for the region.
On the economic front, Ajay Dua, Former Commerce and Industry Secretary in Government of India, flagged a hit to India’s exports, with sectors such as basmati rice, petroleum, textiles and gems under pressure. He added that prolonged disruptions could dent GDP and trigger job losses, with early signs of labour displacement already visible in export hubs.
First Published: Mar 31, 2026 8:17 PM IS
