Former diplomat Sanjay Panda has raised concerns that the global economy may be approaching a recession due to the ongoing conflict in Iran, emphasizing the growing economic disruption and uncertainty as the war involving the United States and Israel continues.
In an interview with CNBC-TV18, Panda stated, “we are at a point where a significant economic crisis is unfolding,” warning that “we could be heading toward a recession” as billions in losses accumulate daily. The conflict, now entering its fifth week, has put considerable pressure on global markets, particularly following the closure of the Strait of Hormuz, a vital energy corridor.
Panda observed that the inconsistent messaging from Washington indicates a lack of direction. “The Americans are clearly seeking an exit strategy, but they seem uncertain on how to proceed,” he added, referencing mixed signals from Donald Trump regarding negotiations with Iran.
Omair Anas, an author and professor at a Turkish university, remarked that the US’s “maximum pressure” approach has backfired, with Iran fortifying its negotiating stance despite suffering infrastructure damage. He cautioned that any ground offensive could extend “for several months or potentially years,” describing it as a possible catastrophe for the region.
Economically, Ajay Dua, the Former Commerce and Industry Secretary in India, indicated that India’s exports are likely to be affected, particularly in sectors like basmati rice, petroleum, textiles, and gems. He noted that prolonged disruptions could negatively impact GDP and lead to job losses, with early indicators of labor displacement already apparent in export centers.
First Published: Mar 31, 2026 8:17 PM IST
