Analysis
07:00
If the Islamic republic joins the war directly, all bets are off
by John Rapley
Iran-aligned Houthi fighters in Yemen earlier this month. Credit: Getty
When the Gaza war broke out in October, the contrast with the 1973 Yom Kippur War was stark. Whereas the earlier conflict sent inflation soaring in the West, triggered a global recession and heralded the end of the Keynesian era, this time around the breakout of fighting barely registered in world markets.
Now, as the conflict enters its third month, that second proposition is starting to look dicey. Despite constant diplomatic efforts to prevent Iran or its various regional proxies from entering the conflict, their pace of activity has stepped up. Recently, Iran-aligned Houthi rebels have opted for a new tactic…
