Global Economic Impact: The Winners, the Losers, and the Fragile

From the G7 energy shock to the collapse of remittances in emerging markets, a deep dive into the nations facing the most acute economic risks from the ongoing Iran conflict.

By: AXL Media

Published: Mar 21, 2026, 10:16 AM EDT

Source: Reuters

The G7: Industrial and Energy Vulnerabilities

The world's most advanced economies are facing a "rekindled nightmare" of the 2022 energy crisis, with high import dependence driving fresh inflationary spikes.

Germany: The manufacturing sector, which only recently stabilized, is highly exposed to costlier energy and a global slowdown. Budget shortfalls limit the state's ability to provide further stimulus.

Japan: Extremely vulnerable, sourcing 95% of its oil from the Middle East, with 90% transiting the blocked Strait of Hormuz. A weak yen is compounding the cost of imported daily necessities.

United Kingdom: Electricity prices are spiking due to heavy reliance on gas-fired power. With 10-year gilt yields at their highest since 2008, the UK faces the highest borrowing costs in the G7.

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