The War Economy on the Ukrainian and Israel–Iran Fronts: The Geo-economic Gains of the United States

Introduction

The first half of the 2020s witnessed two hot conflicts that profoundly shook world politics: the war launched by Russia against Ukraine and the Israel–Iran conflict that recently broke out. Although these two fronts lie in geographically different regions, they are interconnected in terms of international balances and economic interests. The United States (US) in particular is a key actor in both crises. While the US supports Ukraine against Russia together with its allies in Europe, in the Middle East it stands alongside Israel in confronting Iran.

Behind these conflicts lie not only military objectives but also geo-economic interests. A wartime environment requires states to make calculations across a broad field, from energy policy to arms sales and from financial systems to international alliances. The US, thanks to its capacity for global power projection, is making significant gains from these crises through energy, the arms industry and the dollar-based monetary system.

This article examines the impact of the war economy on energy markets, the reshaping of the security architecture in Europe and the Middle East, the effects of NATO enlargement on the US arms market and the strategies for preserving the global dominance of the dollar. All of these topics are assessed in a holistic manner in the light of developments on the Ukrainian and Israel–Iran fronts. In addition, with particular emphasis on the aspects that closely concern the Muslim peoples of the Middle East, the article examines what these developments mean from the perspective of the Islamic world.