Iran Conflict Erodes Global Trade Order, Reviving Protectionist Economic Theories

The escalating conflict involving Iran is significantly undermining the established global trade order governed by World Trade Organization (WTO) rules. Market analysts suggest that this geopolitical instability is forcing a retreat from modern globalization toward security-focused and self-sufficient economic strategies. This shift is notably reviving centuries-old economic theories, such as mercantilism, at the expense of multilateral open trade frameworks. The dismantling of the WTO structure is expected to trigger high market volatility and a significant flight to safe-haven assets like gold (XAU/USD). Energy markets remain highly sensitive to these developments, with Brent Crude and WTI prices likely to experience substantial upward pressure. As global powers pivot toward protectionism, the long-standing era of stable international trade faces an unprecedented and bearish structural challenge.