Trump touts peace in West Asia: How much did Iran war cost the world?

As US President Donald Trump projects himself as a peacemaker in West Asia, the economic cost of the Iran war shows why diplomacy carries a trillion-dollar value for the world. According to the Institute for Economics and Peace (IEP)’s Global Peace Index 2026, the global economy could be missing out on nearly $2.2 trillion due to the difference between a prolonged fragile ceasefire and a renewed escalation of the conflict. The report describes this amount as the economic value of successful diplomacy. The conflict, which triggered major disruption across the Middle East, has hit global energy markets, shipping routes, food…