The economics of war on Iran

[fuguebtc]

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.

This is inevitable. Because rising oil prices will lead to increased transportation and production costs. This will lead to increased prices for goods/food, and ultimately, the people will be the ones to bear the negative consequences.

With oil prices surging, inflation will rise again and we will soon feel the real impact of this war on our daily lives. So let's all prepare for the difficulties ahead because the war will not end anytime soon.

[sana54210]

Spain situation is a bit different, I am not Spanish, so I have no clue and some Spanish person here would be able to enlighten the subject a lot more. However, they are basically saying, we would help on defensive side, but not on offensive side. It means, they are not going to help out USA and Israel on attacking Iran, they are not going to bomb a nation, that's not something they are willing to do.

However, Iran also sends missiles to other nations, specially places like Cyprus , so Spain is saying that for the missiles sent from Iran, they are willing to defend nations. So, they are not "in favour of Iran" or anything like that, they are not, they are just not willing to be on the offensive side of the war.

[AprilioMP]

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.

It is impossible for the global economy not to be affected by the US-Israel war with Iran. Crude oil is a major factor disrupting the economy because the Strait of Hormuz is a key point along the route. Only two countries can enter and exit, namely China and Russia, if I am not mistaken in naming the two countries that have good relations with Iran in many sectors.

As for Bitcoin, I have been monitoring it since the war began, and there has not been much movement.
Strangely, Trump has not learned from the Vietnam War. In many sectors, not just the economy, Iran is superior to the US. That is why many other countries also support Iran, even though they do not openly declare their allegiance to Iran.

[Franctoshi]

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 effect or the negative impact of the war between the US, Israel and Iran is already hitting us here, the pump price of PMS here already gone up almost double of its price and the snow ball effect has begun, where prices of goods and services are again  skyrocketing. This is indeed a global effect not only Iran that is feeling the hit, other countries too after the shortage in the supply of crude oil that caused its price to rise.

[barbara44]

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

They have to justify 1 trillion dollars to military every single year. That's literally the only reason, if they had universal healthcare, they could have capped the price of drugs, and what hospitals could charge, and use that 1 trillion dollars a year on covering everyone for free, add the insurance people are paying already, we would have an entire USA population, not paying a cent more than what they are paying now, in fact paying LESS than what they are paying now, and would get healthcare.

Yet, they instead spend that money on military budget, so for the government to tell people "I am sorry that your brother died because he couldn't get insulin he needed, but military needs that money" they have to be in a war constantly.

[aylabadia05]

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

Contradictory. His decision does not reflect what is actually needed by Americans in particular and the world's citizens in general.
War does not bring “benefits” in quotation marks if that is what it is intended for. There are only losses on many sides. Look at how much war costs. Human lives are lost, even innocent civilians.

Enough of this. This discussion is purely political, and I'm not particularly interested in such nonsense.

[Bitcoin.com97]

You see that oil price , you are right it will affect the oil price and global economic impact , oil supply will definitely hurt the economies worth wide , war is not a good thing , it reduces growth, lives will also be affected, and it’s not only going to be the both country , others are going to suffer for  it , imagine supply of phone is pending, the available once are high , so many things has beginning to increase drastically, let their peace , enough of war here , war there , we need growth , lives and properties are going down, it’s really bad.

[Mate2237]

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.

I don't think that, the reason why Iran is been attacked is because of their cheap mining cost when it comes to Bitcoin, due to cheap energy supply in the country. We all know the reason why Iran is been attacked by Israel and the United States of America, there relationship with America has not been the best in recent times due to their perceived nuclear program and the potential security threats that they pose to Israel.


This war is about interest and that is what we all should take note of. This war will cost a lot on the both sides because wars is one thing that is funded with a lot of money.

[coupable]

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.

There are direct factors contributing to the rise in the barrel price under the current circumstances of potential global war. Let me list some of them:
- America and Israel target oil refineries and drilling sites in Iran which causes the reduce in daily production. Without to mention sanctions imposed on iran oil exportations already before the war.
- Iran responds to the attack by targeting drilling sites and oil tankers in Gulf States which are great oil producers, which also forces them to reduce production.
- Threats from iran to close Strait of Hormuz which about 20% of global oil transportation goes through.
- Threats from iran to close Bab el-Mandeb Strait which about 16% of global oil transportation goes through.
- International sanctions imposed on iran oil exportations already before the war.
- Expensive cost to produce and export oil from other resouces like Venezuila.

This great reduce in global oil production would directly result to a great jump on oil prices that reached 109$ today.

[Cookdata]

The effect or the negative impact of the war between the US, Israel and Iran is already hitting us here, the pump price of PMS here already gone up almost double of its price and the snow ball effect has begun, where prices of goods and services are again  skyrocketing. This is indeed a global effect not only Iran that is feeling the hit, other countries too after the shortage in the supply of crude oil that caused its price to rise.

I was home throughout the weekend when I read that strait of Hormuz will be partially block and there will be scarcity of fuel and other hydrocarbons but I was skeptical it was going to be manipulation of prices by the marketers to make money during this war but on seeing how oil well are bombed in Iran, then the reality begin to show that there will be scarcity of oil for sure. To comfirm it, I went to get gasoline today while going for work and the new sale price shocked me.

It's going to be on record that the president that campaign there will be no war was the first country that initiated this horrible war that is affecting us all in every part of the world. There will be no one left out except for countries that has oil wells and big refineries to settle their consumption otherwise we all going to buy this hydrocarbons at expensive prices.

[HyperCodexV]

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.

Well, since the war is already happening as we speak, the economic consequences are already starting to show rapidly. Whenever there is conflict in that region, oil prices usually react quickly because the Middle East is very important for global energy supply. If the fighting continues or spreads beyond the level at which it is now, then it could make oil even more expensive and that will without a doubt affect prices of many things around the world.

For Bitcoin mining aspect, even if Iran benefits from cheap energy for mining, it’s very unlikely that something like that alone would be the real reason behind such a conflict. Because wars usually happen because of bigger geopolitical and strategic interests.

[STT]

Iran has declared any country that expels US and Israel diplomats will be allowed to sail ships past their shoreline.   Its never simple but an excess of politics and war is bad for business by everyone, nobody is winning here.

Only thing you can really be sure of is when politics declines in volume then the rest of humanity can continue to exist once more and business can resume for the health of nations.
   Bitcoin does have some relation to energy, I see it as some alternative to the need to transport energy as BTC can consume energy locally and transmit the results in some sort of efficient commerce but it is hard to see this as helpful during a war especially so BTC isnt gaining here either.