An all-out war between Israel and Iran could have far-reaching consequences for countries around the world and the global economy. Israel and Iran have been engaged in conflicts by proxy for years, but the recent escalation of tensions has raised concerns about the possibility of a direct war. Both countries have formidable militaries and a war could draw in the United States and Gulf States, potentially inflaming the regional conflict. The economic fallout of a war could be devastating, with the potential for disruptions in the global oil supply leading to surging gas prices and economic recession. There is also a risk of miscalculation, as the longstanding framework of deterrence between Israel and Iran appears to have collapsed.