US-Iran Conflict Evolving Into Economic War: Masood Khan
ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 4th Sep, 2026) The US-Iran confrontation is increasingly turning into an economic war, with prolonged tensions posing serious risks to the global economy, said former Ambassador of Pakistan to the United States, China and the United Nations, and former President of Azad Jammu and Kashmir, Sardar Masood Khan.
According to a press release issued here Friday, while commenting on the deteriorating situation between Washington and Tehran, Sardar Masood Khan stated that military tensions were escalating while Pakistan and other regional countries continued diplomatic efforts to prevent a full-scale war.
He expressed his view that the surge in international oil prices following the latest attacks could fuel inflation, prompt central banks to raise interest rates, slow GDP growth, and undermine the viability of major projects.
Khan warned that if the Iranian situation continued to deteriorate, the consequences would extend well beyond the region. “As the Iranian situation aggravates, global economic viability will also become a question mark,” he observed, pointing to the wider impact of energy prices, financial conditions, and geopolitical uncertainty.
He highlighted that Pakistan, along with other regional countries, was pursuing diplomatic efforts as military tensions intensified, while both Washington and Tehran appeared keen to avoid a full-scale war and seek mutual understanding.
Khan noted that the United States was increasingly relying on economic instruments rather than sustained military action and referred to the reported pressure on Iran’s banking sector, cryptocurrency, and aviation as part of a broader strategy aimed at weakening the Iranian economy and putting pressure on its political, military, and ideological leadership.
He characterized the confrontation as a prolonged struggle involving military, economic, and political dimensions. Iran, he said, was already facing severe economic pressures, while the continuing conflict was also creating political costs for the United States and President Donald Trump.
Emphasizing the economic dimension of the conflict, he stated that its effects were not confined to Iran. Rising energy prices, disruption to shipping, and higher insurance costs could affect countries across Europe, Asia, and the Gulf, including Pakistan.