Demand Destruction

[Furball808]

There is now an agreed ceasefire between Iran and US but is the war actually close to ending or are we being lulled into false safety in the meantime? In this ceasefire, contrary to what may be the expectations, people are busy. Nations are trying to secure oil supply. Traders are speculating whether this ceasefire will hold. Private companies may take this time to secure profits. Other countries may also try to negotiate with Trump and prolong this ceasefire. It's a very complex situation we are in and the recession is still looming over us.

What does actually the future look like if this crisis continues? Right now the oil supply is limited which is not proportionate to its demand, bumping up oil prices. But this goes on for too long and the demand will eventually drop. Not by choice, but by necessity. People will travel less. People will use energy less. All of that just to avoid having to pay so much for oil. What happens after that? The economy slows down. People start looking for alternative energy sources. Is demand destruction a good thing? Yes and no. Yes, because the prices will eventually go down if the demand slows as well. No, because slow economy means people will be losing their jobs as businesses cut down.

I am not trying to inflict fear but I am just thinking of how significant US's decisions are to the rest of the world. It's crazy that US has this much effect on the world. What we are experiencing now is something history books will be studying. The global economy will never be the same after this.

[_act_]

There is now an agreed ceasefire between Iran and US but is the war actually close to ending or are we being lulled into false safety in the meantime?

Nobody can know this question but it was China that made Iran to cease fire just few minutes of the threat that Trump made to about to happen. It is very possible that United States are only trying to play smart but let China know that they can have a better deal with Iran. Which could likely might have been the reason Iran accepted to start a peace deal meeting with United States in Pakistan.

People start looking for alternative energy source

Crude oil is still very important. The Europeans and the West in general has looked for alternative energy sources but this war let other people know that crude oil is still very important. It is what people are using. Expect this not to change over decades.

[Zlantann]

I am not trying to inflict fear but I am just thinking of how significant US's decisions are to the rest of the world. It's crazy that US has this much effect on the world. What we are experiencing now is something history books will be studying. The global economy will never be the same after this.

Donald Trump is unpredictable, so we don't know his next line of action. For now, nations would begin to scramble for suppliers because this ceasefire is very fragile. There is still a large number of US soldiers and weapons stationed in the Middle East. So the war can restart at any time. For now, countries will take advantage of these few days. They will start diversifying their supplier to other oil producing counties outside the Middle East.

The global oil and energy market will begin to readjust. But there will still be uncertainty until there is a permanent ceasefire.

[Mhizlove]

This kind of situation shows how the world economy connects, with little tension in one region can shakes prices everywhere around the world especially oil, with all this happening the markets and countries will always adjust over time and it can happen through alternative energy, policy changes and through new suppliers. We all know that it can only cause short term pressure, but again it's shows that the economy adapts so it's not time for us to fear but it's how businesses and countries will learn how to reduce dependence and just focus on finding balance

[Nightwatchmare]

Demand destruction has to do with a permanent decline in consumer demand for a product which is driven by sustained high price. Some of this aspects of demand destruction are triggered by prolonged period of excessive price. Another thing is behavioural shift, when consumers change their preferences by switching to substitute products. For example, buying electrical car because of high gas price.
Lastly, long term impact, the reduction in demand is permanent.

[Fortify]

There is now an agreed ceasefire between Iran and US but is the war actually close to ending or are we being lulled into false safety in the meantime? In this ceasefire, contrary to what may be the expectations, people are busy. Nations are trying to secure oil supply. Traders are speculating whether this ceasefire will hold. Private companies may take this time to secure profits. Other countries may also try to negotiate with Trump and prolong this ceasefire. It's a very complex situation we are in and the recession is still looming over us.

What does actually the future look like if this crisis continues? Right now the oil supply is limited which is not proportionate to its demand, bumping up oil prices. But this goes on for too long and the demand will eventually drop. Not by choice, but by necessity. People will travel less. People will use energy less. All of that just to avoid having to pay so much for oil. What happens after that? The economy slows down. People start looking for alternative energy sources. Is demand destruction a good thing? Yes and no. Yes, because the prices will eventually go down if the demand slows as well. No, because slow economy means people will be losing their jobs as businesses cut down.

I am not trying to inflict fear but I am just thinking of how significant US's decisions are to the rest of the world. It's crazy that US has this much effect on the world. What we are experiencing now is something history books will be studying. The global economy will never be the same after this.

We're in a very volatile moment right now, but the thing is.. Israel has been trying for years to lure the American military into the region against Iran and now they've achieved it. Trump is a puppet being manipulated by Netanyahu to give him cover for yet more illegal land grabs in Lebanon. Israel is trying to expand their land all the time and often instigating fights against their neighbors to do so. Iran doesn't help the situation either quite frankly, by stirring up problems and having such a repressive religious government, frankly if both of these countries wiped each other out the world might be a safer place. I feel for all the innocent people, who don't want war and don't support these extreme leaders in power, but they are trapped by the geography of where they were born.

[abhiseshakana]

We're in a very volatile moment right now, but the thing is.. Israel has been trying for years to lure the American military into the region against Iran and now they've achieved it. Trump is a puppet being manipulated by Netanyahu to give him cover for yet more illegal land grabs in Lebanon. Israel is trying to expand their land all the time and often instigating fights against their neighbors to do so. Iran doesn't help the situation either quite frankly, by stirring up problems and having such a repressive religious government, frankly if both of these countries wiped each other out the world might be a safer place. I feel for all the innocent people, who don't want war and don't support these extreme leaders in power, but they are trapped by the geography of where they were born.

I believed that every stated decision based on geopolitical interest and national security but i remembered moslem believe, middle east will be the center of conflict in the end of times. There are narrative that is widely discussed in my country is that Israel will be more brutal because many signal show that Israel's collapse is imminent. I am not discussing the truth of the narrative but the effect of the end times narrative on the conflict in the Middle East.Fear of destruction or loss of existence create a survive at all costs policy for many nations, even perceived threats can drive defensive action which apprear aggresive. These narrative intensify the tension become mor emotional, difficult to compromise and every party see it as somehing inevitable. When someone see conflict as fate, how we can stop it.