The economics of war on Iran

[Smartvirus]

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. L

It’s the blue print that is always associated with war, not only the court at war suffers. The rest of the world would always feel its impact and I’m slowly but surely feeling the impact of the demonstration at Iran right here in my nation. Over the past few days, the price of gas has gone up as, though we are an oil producing state, 70% of the gas and petroleum products used here is imported and with the oil wells in Iran gradually closing down, there is certainly a hike in price and that’s the rate we’ve got to buy at now. War is no good for anyone, not at all.

[Akbarkoe]

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 implication if the war continues and the US continues to interfere will result in many parties being tied to other countries in terms of geopolitics and blocks as well as trade associations such as BRICS, in addition to mining it will also have a very big impact on many countries other than European countries, Asia is also included, especially Japan which relies on oil imports from the Gulf countries which are more than 60% for the country, this will trigger energy paralysis and make all food and service prices increase rapidly, as conveyed by Iranian officials they said that they could make oil prices up to $ 200 / barrel if they close the strait.

[STT]

They export even industrial gas which means the use of medical equipment could become restricted.  Even the chip industry relies on these, reminds me of the Ukraine breakdown also.

The main observation I have is gold remains high so dollar itself is not strong in this scenario and prices will not easily decline.  They have released strategic oil reserves but it cant replace such an important areq and oil price is not especially in decline.

[UmerIdrees]

They export even industrial gas which means the use of medical equipment could become restricted.  Even the chip industry relies on these, reminds me of the Ukraine breakdown also.

The main observation I have is gold remains high so dollar itself is not strong in this scenario and prices will not easily decline.  They have released strategic oil reserves but it cant replace such an important areq and oil price is not especially in decline.

The war with Iran will have the direct impact on the global world and not even a single county can remain uneffective by it. The reason is the oil. Yes, the Iran supply almost 20% of the oil to the world and this means that there will be short term clear oil shortage that will result in oil prices spike. Also there are countries who depends 100% supply from Iran too.

This will bring inflation globally because we know that when oil prices are increased, it have a direct impact on the goods and therefore the inflation increase too.

[free-bit.co.in]

The war with Iran will have the direct impact on the global world and not even a single county can remain uneffective by it. The reason is the oil. Yes, the Iran supply almost 20% of the oil to the world and this means that there will be short term clear oil shortage that will result in oil prices spike. Also there are countries who depends 100% supply from Iran too.

Iran and the Middle East are not the only global suppliers of oil and gas. Russia, Canada, and the US are also major oil producing countries in the world. The impact of the Iran conflict could be global, but at the same time, some countries will benefit from higher oil prices. Not all countries are negatively affected, oil producing nations not located in conflict zones are benefiting greatly.

Furthermore, Iran does not supply 20% of the world's oil. To be precise, about 20% of the world's oil is transported through the Strait of Hormuz. And no country imports 100% of its oil from Iran, and 80% of Iran's oil is exported to China. This is because Iran is under US sanctions, and very few countries dare to trade with Iran except for China, Russia, and India.

[viljy]

Another prediction of Zhirinovsky (a deceased Russian politician) about an Israeli attack on Iran and oil at $200 per barrel is coming true. Although it seems that he did not foresee the participation of the United States. So far, only China and India can export oil from the Persian Gulf (starting today). Iran has increased its oil exports. No other Gulf country can export oil and gas either. And it will be indefinitely long. Of course, it is not surprising that the consequences of this will affect the entire global economy.

[sokani]

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.

Aside from the hike in oil price, the war also has a negative effect on international shipping. The Strait of Hormuz is a strategic maritime route that connects the Gulf countries to Asia. To avoid being attacked, ships are forced to avoid the strait and to take a longer route, which takes more time and consumes much fuel. As a result, to ship goods between these regions, it now costs more than it should.

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 war has nothing to do with Bitcoin mining. The reason for the war is to destroy Iran's capability of obtaining a nuclear weapon. However, we know the US also has other hidden agendas. For example, to control Iran's oil.

[StaticVelvet]

I don’t think Bitcoin mining would ever be the real reason for a war. Geopolitics is usually about energy, trade routes, and political influence, not crypto mining. Still, cheap energy has made some countries attractive for miners in the past. 

[Swordsoffreedom]

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 war has nothing to do with Bitcoin mining. The reason for the war is to destroy Iran's capability of obtaining a nuclear weapon. However, we know the US also has other hidden agendas. For example, to control Iran's oil.

If I remember correctly, Iran ranks only 7th or 8th among the world's largest oil producing countries, and accounts for only about 3-3.5% of the total global supply. I think that amount of oil isn't attractive enough for the US to launch an attack on Iran

They have a much larger purpose, and I think their goal is to protect the petrodollar empire. Because once Iran possesses nuclear weapons, US allies and interests in the region will be threatened and could even collapse. If the United States loses influence in the Middle East, it mean its petrodollar empire will also be shaken

As we all know, the US became a superpower and has maintained that status to this day thanks to the petrodollar system. Therefore, they will not hesitate to defend it at all cost.