Iran is threatening to hit oil facilities across the Gulf.
It comes after Israel hit Iran's largest gas field, which makes up about 40 per cent of its known reserves.
Meanwhile Iran's de facto closure of the Strait of the Hormuz continues, strangling this major trade corridor.
So what does this mean for the global economy?
- GUEST: Betsey Stevenson, Professor of public policy and economics at the University of Michigan and a former member of US President Barack Obama's Council of Economic Advisers
