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.

[Abiky]

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.

The USA doesn't import oil from Iran. Only from the "Gulf States". By this, I mean countries like the UAE and Saudi Arabia. With the "Strait of Hormuz" closed, it's expected that the price of oil would increase. Fortunately for Americans, the US already has control of the largest oil reserve in the world. All it needs is to start drilling in Venezuela, and it will be "riding off into the sunset".

For other countries, it would be "hell to pay". Especially the EU, China, and some Asian countries. Maybe they'll decide to buy oil from Russia instead? It would be a way to circumvent the "Strait of Hormuz". But perhaps, this is not a viable option. The longer the US-Israel-Iran war takes, the worse it will be for the global economy. Let's hope the conflict ends soon.

[jostorres]

The USA doesn't import oil from Iran. Only from the "Gulf States". By this, I mean countries like the UAE and Saudi Arabia. With the "Strait of Hormuz" closed, it's expected that the price of oil would increase. Fortunately for Americans, the US already has control of the largest oil reserve in the world. All it needs is to start drilling in Venezuela, and it will be "riding off into the sunset".

For other countries, it would be "hell to pay". Especially the EU, China, and some Asian countries. Maybe they'll decide to buy oil from Russia instead? It would be a way to circumvent the "Strait of Hormuz". But perhaps, this is not a viable option. The longer the US-Israel-Iran war takes, the worse it will be for the global economy. Let's hope the conflict ends soon.

Now THAT makes sense. I did not understand the whole reason behind it, because normally they are not getting their oil from Iran, which is why it did not made any sense to me at all why they would have a higher oil price. I think Venezuela situation didn't happen as good as they wanted, something about quality of oil there or something, I do not know much about that either.

If a strait is a problem, can't they just figure something about that out? Like protect it or something? Not sure how any of that works but if they could, that would not be a bad idea at all. Cheaper gas prices is something we all need, and if they can do something about it quickly, that would be great for all of us.

[davis196]

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.  🙂

It's been almost two weeks since the USA and Israel attacked Iran. The Bitcoin price is sitting at sixty nine thousand dollars. The oil prices went thru the roof, but there was a short term price drop. The global financial markets didn't crash, but the overall sentiment isn't optimistic.
Venezuela has the biggest oil reserves, but that doesn't mean anything, since the oil production in that country is relatively small and it cannot be drastically increased in a short time frame. The high oil prices will hit the global economy, if the war continue. The US economy isn't immune to high oil prices and to global recessions. I don't believe that the crypto prices will "pump" this year(even if the war with Iran comes to an end).

[AmaGold70]

I think the fight between US and Iran will rather boost the US dollar instead of to weaken it. The reason is because the US has a more stable economy and investors will invest more using dollar in other to reduce inflation . More also US being one of the nation with the highest oil reserves, their energy sector will hardly be threatened .
In the path of bitcoin and other cryptocurrencies, I believe their will be a significant impact, leading to cryptocurrency price drop and will likely recover when the war be over.
Any time their is war more especially in countries with significant Bitcoin and other cryptocurrency holding, the price is affected because most people holding cryptocurrency will like sell them, some will use it as donations to help those who are more vulnerable to the fight and such activities use to have bearish impact on the price of bitcoin and other cryptocurrencies.

[beerlover]

I am not 100% convinced even right now that we are going to see boots on dirt. I get that the flying by and dropping bombs, and missiling and blowing things up could happen, that is what we have seen so far and I am pretty sure that we are going to keep seeing that. But I do not think we will see soldiers actually going in and start killing people and fighting of the regime.

The reason? Because this time USA is not against some weak civilians with AK's or anything, it's an actual army, and the results may not be as good as they think it will be. Don't get me wrong, they can win, they can destroy the whole place and just win, but it would come at a cost that they will not be ok with losing that much in exchange, don't think so.

[Cryptohygenic]

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?

As it stands, since the US has launched the attack on Iran, the global economy system has been dripping like a leakage of pocket or wallet where incomes becomes insufficient to fill the bag because business is not as usual like when the state of economy could encourage more investors for partnerships.
The US government has also made too big budgets for this fight following how well prepared they portrays with their military equipments being positioned.
Some analysts has also stated that the US would remain firm of their economy surging while the warfare is being funded with the Venezuelan oil since they had also captured the president.

And what about crypto? Do you think the market will crash? Or will prices "pump" shortly thereafter?

Currently bitcoin price is doing well even though it has not spike long term bullish pump.

[aioc]

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?

But the world will pressure Trump to stop the attack if no oil passes on the Strait of Hormuz, Iran is not fighting to win the war; they are fighting to make the war costly not only for the US but also for the world.

They are trying to prolong the war because they know that the world is losing its reserves, and once they start to feel the effects on their economy, the tide will turn against the US.

[Agbamoni]

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.

Perhaps this was his plan all along. First seizing the Venezuelan oil, and then pushing his attack on Iran. However, whether it was the US plans or not, seizing the Venezuelan oil has helped solve the problem of the petrol hike in the country. Today, the price dropped a bit, but the Iranian minister has promised an attack on other areas that will increase the price to $200.

[Cookdata]

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.

The US and other body regulate the oil, remember what they did in Venezuela? They want a man that will listen to what they say that's why they have to removed Maduros and installed another a puppet that will bend to their will. However, who decides the price now isn't about US anymore, the price is determine by the forces of demand and supply. With less supply and increase in demand, expect the price to shoot up but this one is orchestrated with speculations with what is going in strait of Hormuz.

During war, you should be ready for any price, a price of oil can trade in country A for 100 bucks and trade in country B for 120. Demand is what determines the price, until all this is settled, if Donald Trump and Iran comes to a conclusion and says there is no more war, both parties sign a treaty not to engage in war again before stability will return to the global markets and economy will go back to normal, for now until then the speculation continues.

[Abiky]

Now THAT makes sense. I did not understand the whole reason behind it, because normally they are not getting their oil from Iran, which is why it did not made any sense to me at all why they would have a higher oil price. I think Venezuela situation didn't happen as good as they wanted, something about quality of oil there or something, I do not know much about that either.

If a strait is a problem, can't they just figure something about that out? Like protect it or something? Not sure how any of that works but if they could, that would not be a bad idea at all. Cheaper gas prices is something we all need, and if they can do something about it quickly, that would be great for all of us.

The US tried to protect the "Strait of Hormuz", but it ultimately failed. Especially when Iran decided to put mines in it. Each boat attempting to cross the strait, would be at risk of being destroyed by mines. The US might as well ship its own oil to countries who need it the most. It might also ease sanctions/restrictions against Russia, as a temporary measure for the global economy.

If nothing is done, I'm afraid the price of a barrel of oil will continue to go up during the duration of the war. Perhaps, this is a calling for countries to abandon oil altogether and start looking for alternatives? I mean, many were saying EVs and solar/nuclear energy are the future. Why not start building the infrastructure at a large scale? "Where there's a will, there's a way". Here's hoping for the best.