The ongoing West Asia conflict could trigger a severe global economic crisis unless emerging economies intervene to push for an end to hostilities, economist Jeffrey Sachs warned in an exclusive interview with CNBC-TV18.
Sachs, Professor at Columbia University, said the war sparked by the United States and Israel’s joint operations in Iran risks escalating far beyond the region, with potentially devastating consequences for global trade and energy markets.
“This war will not end in four weeks. This war will create an economic catastrophe unless the BRICS countries say to the United States and Israel: you have to stop,” Sachs said. “You have no right to ruin the whole world economy.”
The conflict, which erupted after US and Israeli strikes in Iran last weekend, has already raised fears of disruption to global energy supply chains. The West Asia region accounts for a significant share of global oil exports, and any escalation could impact shipping through critical routes such as the Strait of Hormuz, a key artery for crude supplies to Asia.
Sachs argued that the crisis could have far-reaching economic implications for major Asian economies, including India and China, which depend heavily on imported energy. “Israel has caused a sharp economic crisis in Asia now, and the crisis will get worse unless the countries of the world stand up and tell the United States and Israel: stop this war,” he said.
According to Sachs, the conflict could become prolonged despite claims from the US administration that the military campaign would be short-lived. He dismissed suggestions that the war could end quickly, saying political messaging from Washington should be treated with caution.
“We shouldn’t listen to Trump about any of this,” Sachs said. “These people are propagandists. They are not offering serious analysis.”
He added that the Gulf region could face serious risks if the conflict spreads, noting that energy infrastructure across the region remains vulnerable to drone and missile attacks. Oil fields, refineries, ports and tankers could become targets if hostilities intensify.
Sachs also cautioned that countries hosting US military bases may find themselves exposed rather than protected in the event of a wider conflict. “The US is like a magnet drawing bombs and drones right to their countries,” he said.
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Calling for a diplomatic resolution, Sachs said the conflict could end quickly if the United States and Israel halted their military operations. He urged major emerging economies to use their collective influence to push for de-escalation.
“The war could end today if Israel and the United States ended their aggression,” Sachs said, adding that voices from India, China, Brazil, Russia and other BRICS nations would be crucial in pressing for peace.
The warning comes at a time when markets are already bracing for volatility in oil prices and supply disruptions as tensions in West Asia continue to escalate.