Modern War Strategy and Economic Independence: An Analysis of the US–Israel vs. Iran Conflict from the Perspective of Global Economic Disruption

Authors

  • Joseph Robert Giri Poltekad
  • Kup Yanto Setiono Poltekad

DOI:

https://doi.org/10.55927/fjst.v5i7.116

Keywords:

Modern War Strategy, Energy Geopolitics, Deterrence, Global Interdependence, Global Economy.

Abstract

This study analyzes modern warfare strategies used in the US–Israel versus Iran conflict and their implications for global economic stability. The main problem is the lack of an analytical model that integrates the military, energy geopolitics, and global economic dimensions in a single analytical model. The research gap so far shows the dominance of partial and linear approaches. This study, however, utilizes Clausewitz's theory, structural realism, deterrence, and complex interdependence with a system dynamics approach. Previous studies tended to be sectoral, while this study is integrative. A qualitative explanatory methodology with causal loop diagrams was used, based on data from OPEC, the IMF, and the IEA, and expert interviews. The results demonstrate a non-linear relationship through feedback mechanisms between conflict, supply chain disruptions, and global inflation. The analysis confirms that deterrence serves as a systemic balancing element. This study concludes that modern warfare functions as a global economic and political instrument. The novelty of this study lies in its non-linear integrative model. This research contributes theoretically and practically, with implications for energy independence policies and national defense strategies to address an increasingly complex spectrum of threats

References

Allon-Pineda, J. C. S., Ocampo, J. C. G., & Santos, E. R. D. (2025). Second-round effects and asymmetry in oil and food price shocks to inflation. Latin American Journal of Central Banking, 100180. https://doi.org/10.1016/j.latcb.2025.100180

Biddle, S. (2004). Military power: Explaining victory and defeat in modern battle. Princeton, NJ: Princeton University Press.

Blanchard, O. J., & Galí, J. (2007). The macroeconomic effects of oil shocks: Why are the 2000s so different from the 1970s? NBER Working Paper, 13368. https://doi.org/10.3386/w13368

Bohi, D. R., & Toman, M. A. (1996). The economics of energy security. The Energy Journal, 17(1), 1–18. https://doi.org/10.5547/ISSN0195-6574-EJ-Vol17-No1-1

Buzan, B. (2003). Regions and powers: The structure of international security. Cambridge, UK: Cambridge University Press.

Clausewitz, C. von. (1989). On war (M. Howard & P. Paret, Eds. & Trans.). Princeton, NJ: Princeton University Press.

Cohen, A. (1998). Israel and the bomb. New York, NY: Columbia University Press.

Colgan, J. D. (2014). Oil, domestic politics, and international conflict. Energy Research & Social Science, 1, 198–205. https://doi.org/10.1016/j.erss.2014.03.005

Christopher, M., & Peck, H. (2004). Building the resilient supply chain. International Journal of Logistics Management, 15(2), 1–14. https://doi.org/10.1108/09574090410700275

Eisenstadt, M. (2017). Iran’s military power: Capabilities and intentions. The Washington Institute for Near East Policy.

Forrester, J. W. (1961). Industrial dynamics. Cambridge, MA: MIT Press.

Goldsmith, J. L., & Posner, E. A. (2005). The limits of international law. New York, NY: Oxford University Press.

Graham, S. (2010). Cities under siege: The new military urbanism. London, UK: Verso.

Gray, C. S. (2003). Maintaining effective deterrence. Carlisle, PA: U.S. Army War College Press.

Gray, C. S. (2014). Strategy and Defence planning: Meeting the challenge of uncertainty. Oxford, UK: Oxford University Press.

Guiora, A. N. (2014). Modern geopolitics and security: Strategies for unwinnable conflicts. Boca Raton, FL: CRC Press.

Hamilton, J. D. (2011). Historical oil shocks. NBER Working Paper, 16790. https://doi.org/10.3386/w16790

Ivanov, D. (2020). Predicting the impacts of epidemic outbreaks on global supply chains: A simulation-based analysis. Transportation Research Part E: Logistics and Transportation Review, 136, 101922. https://doi.org/10.1016/j.tre.2020.101922

International Monetary Fund. (2026, April). World economic outlook: Global economy in the shadow of war. https://www.imf.org/en/publications/weo

Kalyvas, S. N. (2006). The logic of violence in civil war. Cambridge, UK: Cambridge University Press.

Kaye, D. D., Nader, A., Roshan, P., Soltani, M., & Yarhi-Milo, K. (2011). Israel and Iran: A dangerous rivalry. Santa Monica, CA: RAND Corporation.

Kementerian Pertahanan Republik Indonesia. (2015). Buku putih pertahanan Indonesia. Jakarta: Kementerian Pertahanan RI.

Keohane, R. O., & Nye, J. S. (2012). Power and interdependence (4th ed.). Boston, MA: Pearson.

Kilian, L. (2009). Not all oil price shocks are alike: Disentangling demand and supply shocks in the crude oil market. American Economic Review, 99(3), 1053–1069. https://doi.org/10.1257/aer.99.3.1053

Kreps, S. E. (2016). Drones: What everyone needs to know. New York, NY: Oxford University Press.

Narang, V. (2014). Nuclear strategy in the modern era: Regional powers and international conflict. Princeton, NJ: Princeton University Press.

Norheim-Martinsen, P. M., & Nyhamar, T. (2019). International military operations in the 21st century: Global trends and the future of intervention. London, UK: Routledge.

Prakoso, L. Y., Suhirwan, & Prihantoro, K. (2020). Sea defense strategy and urgency of forming maritime command center. Jurnal Pertahanan, 6(2), 200–211. https://doi.org/10.33172/jp.v6i2.721

Reach, C., Blanc, A. A., & Geist, E. (2022). Russian military strategy: Organizing operations for the initial period of war. Santa Monica, CA: RAND Corporation.

Schelling, T. C. (1966). Arms and Influence. New Haven, CT: Yale University Press.

Simatupang, T. B. (1981). Pelopor dalam perang pelopor. Jakarta: Pustaka Sinar Harapan.

Sovacool, B. K. (2011). Evaluating energy security in the Asia Pacific: Towards a more comprehensive approach. Energy Policy, 39(11), 7472–7479. https://doi.org/10.1016/j.enpol.2011.09.008

Sterman, J. D. (2000). Business dynamics: Systems thinking and modeling for a complex world. Boston, MA: McGraw-Hill.

Trading Economics. (2026). Crude oil – Price, chart, historical data and news.

Waltz, K. N. (1979). Theory of international politics. New York, NY: McGraw-Hill.

Walt, S. M. (2018). The hell of good intentions: America’s foreign policy elite and the decline of U.S. primacy. New York, NY: Farrar, Straus and Giroux.

Yergin, D. (2011). The quest: Energy, security, and the remaking of the modern world. New York, NY: Penguin Press.

Published

2026-07-28

Issue

Section

Articles