Who hurts most as Iran war hits global economy?

Economic Impact of the Iran War - The prolongation of the Iran war risks creating an unprecedented crisis in energy supplies, impacting the global economy [1] - Some countries are more exposed to the economic impact of the conflict, particularly in Europe and emerging economies [2] G7 Economies - Germany's industry-heavy economy is vulnerable to rising energy costs, with manufacturing activity recently contracting for the first time since 2022 [3] - Italy has a significant manufacturing sector and high reliance on oil and gas in its energy consumption [4] - Britain's electricity production is heavily reliant on gas, with rising gas prices leading to potential interest rate hikes and high borrowing costs [5] - Japan sources around 95% of its oil from the Middle East, facing inflationary pressures from a weak yen and reliance on imported raw materials [6] Emerging Economies - The Gulf region is experiencing direct economic hits, with forecasts predicting economic shrinkage due to the conflict and disruptions in oil exports [7] - India imports about 90% of its crude oil, with economists trimming growth forecasts as the rupee hits a record low and food items face rationing due to rising gas prices [9] - Turkey is bracing for geopolitical uncertainty and potential refugee influx, with its central bank facing inflationary pressures [10][11] Fragile Economies - Sri Lanka has implemented public holidays and restrictions to manage energy costs, affecting public services and transport [12] - Pakistan has increased petrol prices and closed schools, with government departments facing fuel allowance cuts [13] - Egypt faces surging fuel and food costs, a potential drop in Suez Canal and tourism revenues, and challenges in debt repayment due to currency depreciation [14]