Forgot Your Password?

New to The Nation? Subscribe

Print subscriber? Activate your online access

.nation-small__b{fill:#fff;}

Trump’s War Is Destroying the Global Economy

Spiraling financial chaos might be the only thing that can force the president to pull back from this conflict.

Donald Trump at Dover Air Force Base in Dover, Delaware, on March 7, 2026.

Donald Trump’s war against Iran is already turning out to be a military, diplomatic, environmental, and humanitarian disaster. But none of this seems to matter to the president, who has been remarkably complacent and dishonest about the crisis he has caused. Last Sunday, in a video about the death of US soldiers, Trump said, “And sadly, there will likely be more [deaths] before it ends. That’s the way it is. Likely be more.” Asked if Iran could possibly retaliate with attacks on US soil, Trump said, “I guess.” He added, “Like I said, some people will die. When you go to war, some people will die.” When asked about the bombing of a primary school in Minab that killed at least 165 people, mostly children, Trump simply lied, saying, “That was done by Iran.” In fact, all available evidence overwhelmingly points to US guilt in the atrocity.

As a narcissistic authoritarian, Trump is naturally indifferent to the human costs of war. Nor does he show any concern for how his reckless aggression is alienating US allies in the region and around the world. As Iran has proven surprisingly resilient in hitting back at US military bases and allies, Trump has thrown out any regard for the rules of war, with horrific strikes on oil depots making the air above Tehran and other cities unbreathable.

But if human misery has no effect on Trump, the economic shock caused by his war is another matter—not because Trump cares about the suffering caused by a sputtering economy, but because he understands that economic chaos is a political problem for him. In the past, Trump has shown that while he is happy to ignore Congress or other outside critics, he pays attention to the stock market. It was a steep market correction in the spring of 2025 that first convinced Trump to temper his initial aggressive push for steep tariffs.

The White House has good reason to worry now. On Sunday, the price of crude oil surged to $110 a barrel (and then went down slightly). This is nearly 50 percent higher than it was before the war. Analysing this surge and the sharp fall in stock market futures around the globe, The Wall Street Journal argued that the war is “unleashing the most severe energy crisis since the 1970s and threatening the global economy.”

This is why, in typical Trump fashion, the president is trying to wave away the economic impact of the war. In a Truth Social post on Sunday, he tried to be blasé about rising oil prices, writing, “Short term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, is a very small price to pay for U.S.A., and World, Safety and Peace. ONLY FOOLS WOULD THINK DIFFERENTLY! President DJT”

It’s hard not to read this as a case of whistling past the graveyard. Trump knows very well that one of the major reasons he won the 2024........

© The Nation