US inflation jumps to highest level in almost two years

[PostQuantumBTC]

They said Iran has no right to block the Strait of Hormuz, but Iran has a plan and it happened all over the world, the war also affected the US.

Trump said I told them to come and let us open the Strait, that they did not answer. He said United States does not depend on the Strait but see what is happening in the US now as inflation in the US accelerated last month to its highest rate in nearly two years.

The war in Iran significantly caused the inflation.

https://www.bbc.com/news/articles/cde56g80xp5o

[Dunamisx]

With the way things are going now, once there's a serious issue with one, others too will be affected indirectly, this is why we all suffer the cost of the oil price hike, as some cant be selling high and we choose to sell low, everyone is taking advantage of the other, but as to why US is being affected with inflation rate hitting the highest over few years.

Maybe things weren't planned to go as they already met them at the cause of the war, they have already wasted a lot of resources at the cause of this war, plus the USD dominance may be reducing gradually in the global economy as bitcoin is serving as an alternative already to countries that will not support the US.

[letteredhub]

There is no nation in this contemporary world that can be rest assured to survive and operate on its own when the others are being affected by a global situation. It's just in a matter of time before they get affected directly or indirectly. Perhaps this was what Trump was forgetting from the very beginning when he was boasting about the sufficiency of the US economy and thinking that what ever economic crisis and inflation the war may cause the US economy would be exempted. You can't be arrogant and think that you'll think straight at same time.

[Fortify]

Anyone could have predicted this would happen, we had two very recent examples of supply shocks - Covid and and Russia's invasion of Ukraine where there was a similar outcome. If 20% of the worlds supply of oil, a critical resource, suddenly evaporates then it will ripple throughout supply chains into a rise in cost for the remaining 80% in circulation. There are also lots of other things that come out of the region, like fertilizer, which will push up prices for food and it's just generally a massive artery for trade that has become severed. The root source of this whole problem is Trumps America and Israel trying to bully it's neighbors while stealing land. We are all in for a bumpy rollercoaster until Trump picks the next disaster to create, because he is only an expert at making problems.

[Fiatless]

The world economy is interconnected and interrelated. The US might not depend on the Strait of Hormuz for oil or gas suppliers, but it depends on other countries for other products. China, Japan, India and South Korea depend on that passage. And the US depends on these countries for many suppliers. These countries will increase the prices of these goods they supply to the US because of the hike in oil prices. This increase in the price of imported goods would cause inflation in the US.

[EarnOnVictor]

One thing you need to understand about the economy is that some effects may not replicate their actual cause, players actions and inactions distort the effect. Trump was right about his accessments, but economics doesn't always respect that, and he should have taken actions to cushion the effect immediately through subsidy or increase the supply to lower the WTI price or stabilise it at prewar levels. An ordinary rumour could send a shockwave in the economy if not tackled, even before the reality, let alone a war that directly involves the US.

Ordinarily, the US dependence on what is passing through the Strait of Hormuz is very low compared to what is happening. But in the end, the increased WTI prices will have ripple effects in the US economy.

[goldkingcoiner]

The world economy is interconnected and interrelated. The US might not depend on the Strait of Hormuz for oil or gas suppliers, but it depends on other countries for other products. China, Japan, India and South Korea depend on that passage. And the US depends on these countries for many suppliers. These countries will increase the prices of these goods they supply to the US because of the hike in oil prices. This increase in the price of imported goods would cause inflation in the US.

Come to think of it, the USA heavily relies on Taiwan for semi-conductors. If that source were to disappear in one day, the effect would be very heavy. The EU has shown what happens to countries that rely too heavily on a single foreign country for their key needs. They become desperate, as the US is now, and they start creating conflicts where there was none, just to secure another key source.

[Shadiq]

If you analyze the ongoing war carefully, you will see that Iran's main goal was to weaken the United States economically. The ongoing war was over the economy. We have seen how Iran gave conditions for oil ships to pass through the Strait of Hormuz, and even attacked US bases in different countries, all of these were to weaken the United States economically. I think Iran has been successful in this war so far. They have already put the United States in an economically unstable situation. Along with that, they have also put the world economy in an unstable situation.

[akamit]

The world economy is interconnected and interrelated. The US might not depend on the Strait of Hormuz for oil or gas suppliers, but it depends on other countries for other products. China, Japan, India and South Korea depend on that passage. And the US depends on these countries for many suppliers. These countries will increase the prices of these goods they supply to the US because of the hike in oil prices. This increase in the price of imported goods would cause inflation in the US.

This is the point that gets missed in most of these discussions. People hear "the US doesn't depend on the strait" and think that settles it, but the supply chain doesn't work that way. When your trading partners take a hit, you feel it eventually through the goods they export to you. It's indirect but it's just as real.

The semiconductor angle brought up by @goldkingcoiner is a good example too. One pressure point in the wrong place and the ripple goes much further than most people expect.

[Mhizlove]

In a way the world economy is connected somehow the war might be happening in one country but it will affect others too. When there is an issue in strait of Hormuz, the world market always shakes and even before every other thing the fear has already move the price up and we all know  that once the price of oil is up it will won't affect only one place, this also makes the cost of transportation, food and good will be very high and even though some countries will always say that they don't depend on it still feels it through global prices, it may happen in a small area but it at the end it affects nationwide

[Ambatman]

It's quite normal for inflation to be at it'd highest during war
Since the government would have to print more and engage in policy
That would help them generate more funds to finance it.
War is nothing good
And the citizens are the ones that usually bear the burden
Price of goods has been increasing as a result of the scarcity in oil
Affecting my country that isn't remotely related to the war.

[slapper]

The people who decide to go to war don't pay the price. They make the call. And I am not only waving an accusing finger at one side. The price is somewhere different. It is the burden of the individual who pays higher prices of gas. On the small business owner who sees their shipping bills soar. On families that are doing real-time calculations regarding their ability to afford the same grocery run that they did two months ago.

The same administration that launched Operation Epic Fury way back in late February is now outraged that Iran used the Strait.  What? What did we expect in this? Iran lacks air dominance, lacks the type of conventional force projection that the US possesses. But they do control twenty-six percent of the seaborne oil traffic of the world and they have long known that that is their leverage. You strain hard enough against a person with the geography on his back, he employs the geography.

The entire idea of the Iranian strategic posture is the asymmetric warfare. They do not have to win traditionally. All they should do is to ensure that the cost of fighting them is high enough to make it a political issue to whoever is fighting them. The Strait is closed, oil spikes, inflation statistics are released, consumer confidence plummets. Then a military war has become an economic fear that millions of average Americans experience at the gas pump and in their wallets.

Oil does not give a damn about your home production statistics. The local manufacturers market at international prices. As the world price increases, your national price increases. The only decoupling mechanism that can be used to decouple with global oil prices is to stop consuming oil, which no one in power appears to want to discuss.

[Lembo69]

Yes, it is true that inflation is happening due to the war, the Strait of Hormuz has been opened and they have declared a 14-day ceasefire. But it is not known whether there is any possibility of inflation being controlled at all, but many ordinary families are under pressure due to inflation, they are suffering more than the war in terms of human life and their livelihood. Will the 14-day peace agreement between Iran and the United States be able to curb inflation again? In my personal opinion, what the Iranian government is doing is doing the right thing, for one reason only, we have all seen how Israel has taken the lives of innocent Palestinians, while the Palestinians were innocent. The Strait of Hormuz has opened, and now it is possible to easily import and export almost all kinds of products  in the market, so it can be assumed that inflation will decrease to some extent.

But think about it, their war is going to start again soon, and they will become desperate to take each other's lives again. This war with Iran is justified, but they are also putting pressure on other countries because their war is causing an energy crisis. The people of the world now want peace, not war. So I think they should stop this war altogether. They should be bound by a peace agreement.

[fuguebtc]

If you analyze the ongoing war carefully, you will see that Iran's main goal was to weaken the United States economically. The ongoing war was over the economy. We have seen how Iran gave conditions for oil ships to pass through the Strait of Hormuz, and even attacked US bases in different countries, all of these were to weaken the United States economically. I think Iran has been successful in this war so far. They have already put the United States in an economically unstable situation. Along with that, they have also put the world economy in an unstable situation.

The United States initiated the war, and Iran was the invaded nation, suffering heavy losses in terms of both human lives and economic damage. Is it accurate to say that Iran is trying to undermine the US economy?

But perhap you are also partly right to say that Iran won this war because they prevented Trump from achieving his goal. The United States has suffered unexpected losses and is now in a dilemma. And this is the consequence of those who like to invade other countries.

[CONVOAI]

In the current situation closing or keeping the Strait of Hormuz open is not just a matter of the will or power of a country because this waterway is one of the most important energy transport routes in the world. Everyday a huge amount of oil and gas passes through this route to different countries on which the economies of many countries are directly dependent. If a country makes a unilateral decision here it's impact is not limited to that country or region but rather oil prices in the world market may increase and supply crises may arise and its impact also affects the daily lives of ordinary people such as increasing transportation costs product prices etc. For this reason looking at the issue very simply as the fault of one party does not capture the whole reality rather it is a complex international issue where many aspects of security economics and politics are involved and without increasing tensions it may be more effective to find a solution through diplomatic negotiations, international cooperation and mutual understanding because as the conflict escalates almost all countries will have to bear its negative impact in the end.

[Don Pedro Dinero]

The war in Iran significantly caused the inflation.

https://www.bbc.com/news/articles/cde56g80xp5o

That’s what was be expected. Trump thought the operation in Iran would be like the one in Venezuela, but it has backfired on him. The conflict has led to a rise in oil prices, and this is affecting prices across the board. Now the main macroeconomic problem is the risk of stagflation – economic stagnation coupled with inflation.

[viljy]

Rising inflation in the United States is a natural result of Trump's policy. Of course, the population may not like it. As there are more and more opponents of Trump, this drop in the president's rating only benefits them. I don't think he will hold his position until the end of his presidential term. The funny thing is how much his pre-election statements are at odds with his current actions.

[el kaka22]

Well I guess Trump did not consider the full angle of it. He thought that it would be missiles vs missiles, military vs military. That's not how wars are operated these days, if Iran could hit USA with missile they would, but it's far away enough that it is not worth it, just destroying their economy is enough.

Mind you, strait was open before USA decided to attack Iran, and the whole "weapons of mass destruction" thing was used in Iraq too, and turns out they had none. Iran studied Iraq war carefully, knew that it is not going to win military vs military, so they did what they should, which is hit USA where it hurts, at gas prices.