Economic implications of a possible US military action in Iran

[Oluwa-btc]

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.  🙂

Kidnapping Maduro so he can sell back the Venezuela oil with the US dollar has been selfish yet effective for the dollar. It actually dropped when it was sold with the Chinese yuan. Do much details I lack but, it is not currently weakened. Bitcoin you mean?! It has thrived during hard times,  it was created for doomsday situations as this.

Fighting the world and fighting China just for the sake of power?! Lol! If you can not go to the market and trade with whoever you want to at your own freewill, are you really free?! That was a bit off topic but Iran having the strait of Hormuz has affected Indians and Europeans who buy oil through that channel. At the same time, Russia has also used this as a good time to limit its oil and gas supplies to Europe. Trump in another way harming his allies all for his one stupidity and fragile ego.

[Robinrex77]

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

If you talk about the economic implications of the consequences, impacts or events currently occurring between As-Israel and Iran, economic activity will certainly experience significant changes in certain indicators.

Maybe we will see a little trace of Iran's specialness towards the outside or global world, in general we can see that Iran is a middle power country where Iran has fossil fuel reserves including gas the second largest natural world in the world and the most strategic route for travel between countries in terms of imports and exports, this can be seen geographically, in fact before the US, Israel accused the nuclear bomb, in fact Iran already had it long ago naturally, namely the Strait of Hormuz, If the Strait of Hormuz is closed, it will clearly trigger the most devastating shock to the global energy market, economy and so on. In fact, the Strait of Hormuz is one of the nuclear bombs for the global economy.

For this reason, we can understand that Iran has an active role globally in terms of the economy. Well, in a situation like this, I think the crypto market is a safe target globally, because Bitcoin is one of the safest digital markets when war occurs, rather than gold. fiat and so on, the risks are not the same as Bitcoin which only requires digital keys and wallets.

Oil prices is the most affected goods, it has skyrocketed for 63.2$ to 94.2$, which is not good for businesses, it has affected the price of goods and transportation,  it has also affected the pulp price of petrol and Diesel globally.

The United Nations need to step in because if this continues we are looking at a possible world war 3, Iran wish to excalate to issue by attacking order gulf Nations for it to be a regional war,
As of today the United States of America are attacking oil facilities and oil storage facilities in iran, which will continue to cause an increase the price of oil product, Iran is a major player in the global oil market. Please our future is at stake let so no to violence.

[Cheema02]

The closing of the Strait of Hormuz means that 1/5 of oil's supply in the world will be halted. And I think each country that's been getting its oil from that point, mostly from Asian countries and European countries will have that inflation to absorb. We're already feeling the increase of the oil prices and that's why most of the gasoline stations here are full and the scheduled increase is no longer followed. Note that these are just buffer stocks that are being sold and not yet from the new supply they're importing from those countries in that Strait. So, with small country like us, we're going to feel the huge inflation rate for this month.

Your point actually visualize the economic threat which may held if Strait of Hurmuz closed for long time because one fifth of global oil trade is going through this route so due to conflict if strait is closed for long days then its may cause global economy and energy sectors and mainly Asian and European countries who depends on gulf oil extremely affected and whould face extreme inflation. You alos mention buffer stocks which reserved by gasoline station may helpful for controlling oil prices temporarily so when high price oil shipments comes then actual impact of prices can by feel in fuel markets. So this expensive oil when using for transport then its implied a great affected on inflation and every thing like electricity and basic goods can go to high prices. So the the learning point is that a geopolitical conflict if related to an important trade route like Hurmuz then its creat great economic pressure globally and hits all type of countries.

[jostorres]

Oil prices is the most affected goods, it has skyrocketed for 63.2$ to 94.2$, which is not good for businesses, it has affected the price of goods and transportation,  it has also affected the pulp price of petrol and Diesel globally.

The United Nations need to step in because if this continues we are looking at a possible world war 3, Iran wish to excalate to issue by attacking order gulf Nations for it to be a regional war,
As of today the United States of America are attacking oil facilities and oil storage facilities in iran, which will continue to cause an increase the price of oil product, Iran is a major player in the global oil market. Please our future is at stake let so no to violence.

I still do not get why though. Makes no sense that price of oil would go up. Did USA buy oil from Iran? Did the Europe? Did the Africans even? Who did? Russia doesn't need it, they have all they want, China doesn't need it. Like who was buying the oil in Iran for the major part that it disrupted the whole operation?

I think this was a bad move and should not be something that can be done all that easily, we need to look at this as just fake increase, like pump and dump, and I think we are going to see it go down a lot more soon enough. Hell with Venezuela not selling to China, and now Iran, I think USA will have access to very cheap oil for a decade or more. So the prices are fabricated and not really that high, shouldn't be and this is probably very short term.