Economic implications of a possible US military action in Iran

[Abiky]

Have you ever wondered what will happen to the global economy if US President Donald Trump orders a strike on Iran? What impact will it have in the value of the US Dollar? Will such action strengthen the "greenback"? Or weaken it? And what about crypto? Do you think the market will crash? Or will prices "pump" shortly thereafter?

The US now controls the biggest oil reserve in the world (via Venezuela), so maybe the US has nothing to lose by engaging against Iran?

What do you think? Your input would be greatly appreciated. Thanks in advance.  🙂

[Charles-Tim]

Bitcoin price has fallen slightly already, but which we are all expecting as that is how bitcoin would be when the war started, but that will be the effect as bitcoin price will rise back. If bitcoin fall more, know that it is not caused by the war. Such war only has short term effect on bitcoin price that may not even last more than few hours.

Oil price will rise.

United States dollar will not fall. The currency did not fall even during world war two.

Edit:
Let us see what the stock will do on Monday and how bitcoin react market to it.

[Fortify]

It is a great unknown really and depends on the scale of the action. If it's similar to last year where they hit a few targets and back off, there could be few repercussions from Iran because it's already in a weak political place at the moment because of the way it's been handling internal repression. If it turns into a full scale invasion then Iran might try to cause damage in the gulf waters, which could cause shipping issues until it is over. There are a lot of US military targets - boats and airfields, in the region which might be targeted and if any of them receive substantial damage then it could escalate into a full war and likely an invasion by America. For a president who claimed a peace trophy (from Fifa?) a few months ago after being turned down by the Nobel peace prize, it sounds about right. If it grows into a bigger war it will have a knock on affect on the stock market, causing a small correction if it spills out of the region.

[Alpha Marine]

United States dollar will not fall. The currency did not fall even during world war two.

I don't believe the US currency will fall, but the situation now is differnt from WW2. While Europe was buring, the US was still intact. They provided supplies for the rest of Europe, mening their currency was the dominate during that time. This is a differnt scenario where they are in direct conflict with another country.
The reason the US dolla will not fall is because the country would not be attacked directly. The proof of this is that the US dolla fell against major currency after 9/11 attack. If Iran's attack where directly on US soil and not military bases, the currency would have fallen.
Also, if the US truly has control of Venezuelan oil now, that mean oil prices going up might favour them.

That being said, "it would not fall" doesn't mean it will not drop at all. The US dollar has already see a slight drop recently and it will still drop but it won't be a significant drop.