The United States and Israel launched coordinated military strikes on Iran. President Donald Trump described the action as “major combat operations,” and news reports said the attacks targeted Iranian military and missile infrastructure. Iran retaliated within hours, firing missiles and drones toward Israel and at U.S. military facilities across parts of the Middle East, driving fresh warnings from Gulf governments and raising fears of a wider regional conflict.
Although Costa Rica is thousands of miles from the Persian Gulf, the economic and diplomatic aftershocks of a sustained conflict would not stay contained to the region. To understand Costa Rica’s position, it helps to look at its long relationship with Israel. Costa Rica opened an embassy in Israel in 1963, Israel opened an embassy in San José in 1966, and the countries reached a mutual visa exemption agreement in 1968.
That relationship has also expanded on the trade side. In March 2023, Costa Rica and Israel signed a memorandum of understanding and announced plans to negotiate a free trade agreement. Costa Rica’s ties with Iran, by contrast, have been limited.
The most immediate impact Costa Rica is likely to feel from an escalation involving Iran is economic, starting with energy prices. Costa Rica imports oil for transportation and industry, and military risk in or near the Gulf can push global crude prices higher, feeding directly into local fuel costs and, eventually, transportation and consumer prices.
Tourism, one of Costa Rica’s key economic engines, can also take a hit when global uncertainty rises. If the conflict widens or contributes to financial volatility, some travelers may postpone long-haul trips, particularly from major markets. Trade exposure is another pressure point. The United States is Costa Rica’s top goods trade partner, so any shock that weakens U.S. demand or disrupts logistics can quickly show up in Costa Rican exports and factory orders.
Costa Rica also faces a diplomatic balancing act. The country has long presented itself as a champion of diplomacy and peaceful conflict resolution. A prolonged war involving Washington, Israel, and Iran would test how San José publicly navigates neutrality while managing its close ties with key partners.
