The economics of war on Iran

[uchegod-21]

I'm of the position that the world stands to lose a lot if America imposes war on Iran.

Oil prices will go up and eventually things will become more expensive all around. Gulf countries which produce a lot of the west's oil will be blocked from exporting and a lot of NATO infrastructure in the area including European soil like Souda in Greece and Akrotiri in Cyprus stands to face a lot of instability.

Some people say that one of the reasons Iran is being attacked is because they're utilizing their oil to incentivize cheap bitcoin mining, landing their costs to mine a single BTC at around 2k USD. Even if the cost analysis is true it's ridiculous and entire country woold be bombed over this.

The economy of my country is heavily connected to the global oil market. One slight issue in the supply of oil, prices of commodities skyrocket. It may lead to increased revenue for the country, but the heavy burden of economic instability falls on the poor masses who then experience increased cost of living during the period. Generally, wars between oil producing regions has a great Impact on the economies of the world, the war between Israel and Iran is not an exemption.

[aylabadia05]

I'm of the position that the world stands to lose a lot if America imposes war on Iran.

Oil prices will go up and eventually things will become more expensive all around. Gulf countries which produce a lot of the west's oil will be blocked from exporting and a lot of NATO infrastructure in the area including European soil like Souda in Greece and Akrotiri in Cyprus stands to face a lot of instability.

Here, I feel that it is true if America forces war on Iran. The most obvious losses will be in the economic sector because countries that have good relations with Iran in the trade sector and that disagree with Trump will make those countries unwilling to help America, such as Spain.

Oil is a resource that will become a major problem.
Trump seems strange and crazy in the war on Iran. He is too arrogant, as if he has not thought things through.

[CageMabok]

...

Here, I feel that it is true if America forces war on Iran. The most obvious losses will be in the economic sector because countries that have good relations with Iran in the trade sector and that disagree with Trump will make those countries unwilling to help America, such as Spain.

Oil is a resource that will become a major problem.
Trump seems strange and crazy in the war on Iran. He is too arrogant, as if he has not thought things through.

Not only is Spain unwilling to help America, but other countries like the UK also don't want to intervene in such a situation because they likely know the losses will be enormous. Even the American parliament and the American people disagree with this war because they don't want it to happen and involve them all in it. And now, oil trade routes like the Strait of Hormuz are becoming unsafe for tankers, which will trigger a rise in oil prices if a country starts running low on oil reserves. So, the effects of this chaos will be far-reaching if the war continues unabated.

[hyudien]

Not only is Spain unwilling to help America, but other countries like the UK also don't want to intervene in such a situation because they likely know the losses will be enormous. Even the American parliament and the American people disagree with this war because they don't want it to happen and involve them all in it. And now, oil trade routes like the Strait of Hormuz are becoming unsafe for tankers, which will trigger a rise in oil prices if a country starts running low on oil reserves. So, the effects of this chaos will be far-reaching if the war continues unabated.

These countries understand that if they intervene, it could trigger World War 3, which is something no one wants.
I've also read in some news reports that nearly half of the America public disapproves of Trump actions, however Trump doesn't seem to be backing down and is continuing his attacks on Iran.
Now, what needs to be done is to have oil reserves or start switching to alternative energy sources for the next few months, if the Strait of Hormuz is closed, oil prices will almost certainly spike, as a result, the cost of goods will also rise, and many countries could face serious oil shortages, considering that approximately 20% of the world oil supply passes through the Strait of Hormuz.

[passwordnow]

Here, I feel that it is true if America forces war on Iran. The most obvious losses will be in the economic sector because countries that have good relations with Iran in the trade sector and that disagree with Trump will make those countries unwilling to help America, such as Spain.

What they'll do next is for sure about sanctioning whichever country is dealing with Iran for their oil and other resources. This is what they've been doing for so long so that their trade partners won't leave them. But those gulf countries that have balls will not adhere to this call if ever the USA starts to implement it.

Oil is a resource that will become a major problem.
Trump seems strange and crazy in the war on Iran. He is too arrogant, as if he has not thought things through.

Not just him, any leader who's wanting to get engaged into war and not peace talks are both arrogant although we know that Iran is just retaliating what has been done on them.

[Iroh]

Of course when a country is in a conflict or a full blown war with another country, the economies of both countries would be affected. Then, if one or both countries involved in the conflict or war is a major supplier of oil to the market, goes on to reduce the volume sold to the markets or pause supply indefinitely, then the economy of countries relying on exports from these countries would certainly be affected. Asides Iran being a major player in the oil business, it has threatened attacks on ships plying the strait of Hormuz, a vital route used by ships. All these causes disruption can actually drive up oil prices. Seeing as we utilize energy(oil) in almost everything, the prices of those service snd products would likely see an increase as well.

[aoluain]

Some people say that one of the reasons Iran is being attacked is because they're utilizing their oil to incentivize cheap bitcoin mining, landing their costs to mine a single BTC at around 2k USD. Even if the cost analysis is true it's ridiculous and entire country woold be bombed over this.

If? Bro, where are you living? They are already in a war against Iran and oil prices are already going up. Things are getting expensive as I am writing, and this war has shown us a lot of things that number always win, no matter how powerful the weapons you have, because Iran had the missiles and they had a lot of them but Israel and the US don't have a lot of interceptors.

The second is, how important oil is for everyone, oil can be declared as the main factor to increase and decrease the prices of products and services too. Because if a plumber is driving to your place via car for his service even, he will charge more you know why.

Oil has become an important part of our lives and without it, everything could halt.

Exactly, the OP is about 5 days behind what is happening, we are already 6 days into the attack on Oran
and fuel prices have already risen multiple times.

Oil is the determining factor regarding the economics of this war, it affects EVERYTHING, not just what
you put in your car but what you put in your mouth too.

Thanks to the US/Israel decision to attack Iran the rest of the world will be affected because about 25%
of the global supply has been affected.

[Cheema02]

I'm of the position that the world stands to lose a lot if America imposes war on Iran.

Oil prices will go up and eventually things will become more expensive all around. Gulf countries which produce a lot of the west's oil will be blocked from exporting and a lot of NATO infrastructure in the area including European soil like Souda in Greece and Akrotiri in Cyprus stands to face a lot of instability.

Some people say that one of the reasons Iran is being attacked is because they're utilizing their oil to incentivize cheap bitcoin mining, landing their costs to mine a single BTC at around 2k USD. Even if the cost analysis is true it's ridiculous and entire country woold be bombed over this.

the current situation of Iran's war affect on world and its acceptable that Iran doesn't affect one country its almost affects the whole world economy. The main reason behinds that is Strait of Hurmuz because its the part of Iran and also the important trade location all over the world especially for oil transportation. So due to conflict oil export from gulf countries almost stuck and for this reason the rices of oil and oil products instantly increased and also basic need stuff may out of reach due to inflation and also due to Iran conflict NATO countries have security risks in this region. For this conflict many reasons are existed and mainly is nuclear concern and also geopolitical tension's and regional power is the basic reason. After all discussion the main thing that is noticeable is the damage faced by many countries and inflation faced by all the world including Iran.

[BRINIRHA]

I'm of the position that the world stands to lose a lot if America imposes war on Iran.

Oil prices will go up and eventually things will become more expensive all around. Gulf countries which produce a lot of the west's oil will be blocked from exporting and a lot of NATO infrastructure in the area including European soil like Souda in Greece and Akrotiri in Cyprus stands to face a lot of instability.

Some people say that one of the reasons Iran is being attacked is because they're utilizing their oil to incentivize cheap bitcoin mining, landing their costs to mine a single BTC at around 2k USD. Even if the cost analysis is true it's ridiculous and entire country woold be bombed over this.

If the war continues for a longer period of time, then we really have to be prepared for inflation to start rising again due to the increase in fuel prices caused by the constraints that are also occurring in the Strait of Hormuz. After all, it seems that more than 20% of oil supplies pass through there. Therefore, if the strait is closed or experiences issues that deter oil tankers from passing through due to security concerns, this alone would inevitably lead to an increase in fuel prices.

Iran is reported to have large quantities of uranium or similar materials. I think this could also be one of the actual targets. Regarding nuclear weapons, I don't know the truth. But let time be the judge. However, to be honest, I would prefer everything to be resolved through diplomacy rather than war.

[jaberwock]

I do not completely understand one part, and if anyone could explain it to me that would be lovely. Why did the price of oil went up? Like a barrel of it went up? Iran may not be sharing their oil with anyone right now because they are at war and not selling oil right now.

But not like USA was getting it from them either, nor Europe. So shouldn't it be possible where at the end of this, the barrel of oil price will go down because Iran il will start to go towards Americans? Why would it be higher now? What could be causing oil to be more expensive when all the oil that is going to west is already keep going there right now without trouble?

[Fortify]

I'm of the position that the world stands to lose a lot if America imposes war on Iran.

Oil prices will go up and eventually things will become more expensive all around. Gulf countries which produce a lot of the west's oil will be blocked from exporting and a lot of NATO infrastructure in the area including European soil like Souda in Greece and Akrotiri in Cyprus stands to face a lot of instability.

Some people say that one of the reasons Iran is being attacked is because they're utilizing their oil to incentivize cheap bitcoin mining, landing their costs to mine a single BTC at around 2k USD. Even if the cost analysis is true it's ridiculous and entire country woold be bombed over this.

We're already seeing the fallout of America's ill thought out assassination and attack on Iran, as fuel prices have crept up by 10% when we are barely a few days in. This will feed into every aspect of our lives and drive up inflation in the coming months, the thing that took a few years to get under control since Covid and Russia's invasion of Ukraine. It is one of the dumbest economic moves ever and purely because Trump wants to work for Israel. I have no love for the regime in Iran, but they were already very weak and weren't really a threat to anyone beyond their own people. However now it looks like the only plan that will actually achieve any change is for America to put troops on the ground and lead another war which might last a decade before turning into another quagmire. The way that Trump derides his allies means that it is very unlikely any other nations will be on board to help this time. Honestly, when you think Trump cannot do anything dumber, he achieves it.

[coin-investor]

I'm of the position that the world stands to lose a lot if America imposes war on Iran.

Yes, that's true if the war drags on for months, many economies will collapse because the Middle East controls many countries' oil needs, and if Iran blocks the passage through the Strait of Hormuz, no oil will come from many countries. That's why China and Japan, two big importers of oils wants the war to be stopped.
The US should end the war or declare a ceasefire, or the anger of many countries will turn to the US and Israel. Time is ticking every day, and the world is watching how it proceeds.
 

[Darker45]

As always, wars can only benefit a few. The rest will suffer. Thanks to globalization every conflict affects the rest of the world. My small country that's quite far from where the bombings are happening is now falling short of oil supply. Some gas stations are already closing. The prices of those that are still open have increased a lot. The number of working days have to be cut. The list goes on. While there's always a silver lining, it's not worth it. War is evil.

By the way, it's ridiculous to even suspect the attack is also caused by Iran using its oil to mine Bitcoin.

[bitterguy28]

Trump seems strange and crazy in the war on Iran. He is too arrogant, as if he has not thought things through.

if anything he might have thought things through and he’s being cunning about this. he doesn’t care what the war costs as long as he is able to reap the rewards

[philipma1957]

 The USA has quit every war since Vietnam including Vietnam.

 i give them a push with north and south korea 🇰🇷

but all the ones after they came they killed people and they left.

the only ones that made out are weapons makers that sold weapons

[viljy]

Trump seems strange and crazy in the war on Iran. He is too arrogant, as if he has not thought things through.

if anything he might have thought things through and he’s being cunning about this. he doesn’t care what the war costs as long as he is able to reap the rewards

At the moment, the development of events rather suggests the opposite. There probably wasn't any deep thought, but on the contrary, it looks more like Trump and his entourage were euphoric (after Venezuela) that the military adventure would succeed quickly. Although some economists express the opinion that all this is a plan to pump oil prices in the same way as it was in 1973. Then the United States will be able to devalue the huge national debt. And Trump will blame Iran for the rising oil price.

But this is just one of the versions. And if the United States is defeated in the war, this debt devaluation scheme will not work, because then the petrodollar is highly likely to cease to exist (payments for oil will necessarily be in other currencies, not just dollars). Well, at the current moment, the price increase is unprofitable for Trump.

[summonerrk]

I'm of the position that the world stands to lose a lot if America imposes war on Iran.

Oil prices will go up and eventually things will become more expensive all around. Gulf countries which produce a lot of the west's oil will be blocked from exporting and a lot of NATO infrastructure in the area including European soil like Souda in Greece and Akrotiri in Cyprus stands to face a lot of instability.

Some people say that one of the reasons Iran is being attacked is because they're utilizing their oil to incentivize cheap bitcoin mining, landing their costs to mine a single BTC at around 2k USD. Even if the cost analysis is true it's ridiculous and entire country woold be bombed over this.

My attention was drawn to the news from my news feed that the United States is discussing the possibility of seizing Kharq Island, a strategic oil terminal that accounts for about 90% of Iran's oil exports. It seems that this is probably what this whole military operation was about, because the United States is always a predator that is hungry for oil.
And it is possible that this very good bonus will come in handy for them. Because no one in the world really believes that the United States is going to sow good and change political regimes just because there is some kind of injustice in the rule of these regimes.

[B-BossMan]

I'm of the position that the world stands to lose a lot if America imposes war on Iran.

Op, this particular thread actually reminds me of something, that this era of economy challenges  that we are in now, while the Iran 🇮🇷 and Israel 🇮🇱 war as become something else, I just thought it that, once USA in stands for Israel and imposes war on Iran, I knew definitely many countries may face some challenges on thier economy for a while.

Oil prices will go up and eventually things will become more expensive all around. Gulf countries which produce a lot of the west's oil will be blocked from exporting and a lot of NATO infrastructure in the area including European soil like Souda in Greece and Akrotiri in Cyprus stands to face a lot of instability.

As of some weeks back we didn't hear any news on fuel price shoot up, which everyone was happy and I know most of us that understand the economy of the country would definitely expect the fuel price increases, I got angry toady  due the price increases, because I bought fuel yesterday at the normal rate N920,som sell N950, N960 and suddenly the prices increases to N1,080, N1,200 in my state presently.
I just hope the price of goods/foods remains the same, if not, people must face or feel the negative impacts of the hardship. When the fuel price was at the rate of N920,N950 the price of Foods were dropped to some certain level and everyone were happy and there was a less difficulties on financial challenges or hardship. We pay things get better soon.

Sources:

https://bestsales.ng/fuel-price-in-nigeria-today/

https://www.legit.ng/business-economy/energy/1700256-n1000litre-nnpc-releases-latest-petrol-prices-abuja-lagos-states-nigeria/

[Olatundespo]

I'm of the position that the world stands to lose a lot if America imposes war on Iran.

Oil prices will go up and eventually things will become more expensive all around. Gulf countries which produce a lot of the west's oil will be blocked from exporting and a lot of NATO infrastructure in the area including European soil like Souda in Greece and Akrotiri in Cyprus stands to face a lot of instability.

Some people say that one of the reasons Iran is being attacked is because they're utilizing their oil to incentivize cheap bitcoin mining, landing their costs to mine a single BTC at around 2k USD. Even if the cost analysis is true it's ridiculous and entire country woold be bombed over this.

America and Israel have imposed war on Iran, which is now in its second week. The damage to the war is already enormous and the damage to Iran is much greater because its air defense system is almost ineffective. Iran is far behind in terms of power and its infrastructure and oil fields are suffering a lot of damage. It is using US bases in neighbour countries to attack Iran and in that context, it is attacking US bases in those countries with missiles. Overall, most countries in the Middle East are in the hot cauldron of war. The Strait of Hormuz is practically closed and there is instability in the oil market and a negative decline in the capital market. If no effective steps are taken to stop the war, a more severe financial crisis will intensify around the world.

[Cryptomultiplier]

I'm of the position that the world stands to lose a lot if America imposes war on Iran.

Oil prices will go up and eventually things will become more expensive all around. Gulf countries which produce a lot of the west's oil will be blocked from exporting and a lot of NATO infrastructure in the area including European soil like Souda in Greece and Akrotiri in Cyprus stands to face a lot of instability.

Some people say that one of the reasons Iran is being attacked is because they're utilizing their oil to incentivize cheap bitcoin mining, landing their costs to mine a single BTC at around 2k USD. Even if the cost analysis is true it's ridiculous and entire country woold be bombed over this.

My attention was drawn to the news from my news feed that the United States is discussing the possibility of seizing Kharq Island, a strategic oil terminal that accounts for about 90% of Iran's oil exports. It seems that this is probably what this whole military operation was about, because the United States is always a predator that is hungry for oil.
And it is possible that this very good bonus will come in handy for them. Because no one in the world really believes that the United States is going to sow good and change political regimes just because there is some kind of injustice in the rule of these regimes.

The interference of the U.S in the affairs of almost every country of the world is something that baffles me most times, because am sure they are always up to something in the background of things to gain while going to war or threatening to start a war with any country.
The price of oil, the dip of Bitcoin, the inflation of food prices, are all consequences of this war Iran war and if it continues so, the world stands to lose a lot.

Some call this the 'third Gulf war' and it is surely going to affect the world because of the large outflow of oil supply which is affected and is causing a global inflation to become the order of the day.
Crypto investors in Iran as reported, have moved out a lot of their holdings making it also a capital flight strategy as a means to save their wealth.