US/Israel/Iran: the World Moving into Economic Tatters and Precarious (3)
By Abbati Bako, abbatibako@gmail.com
The world economy seems to be dangerously moving into meltdown as a result of the current regional war with Iran and Israel backed by the United States of America. As mentioned in my first analysis, if war breaks out in the Middle East that will surely affect the entire global economic interplay.
Hence, Iran is now attacking Gulf Nations and blocking the Strait of Hormuz which is the pass way of 20% of global oil supplies. Iran is now attacking Saudi Arabia, Qatar, Oman, UAE, Kuwait and the rest which they claim are attacking American interests in the Middle East. Take note that Iran alone supplies the world about 20% of global oil and gas (this will favor Russia, Angola, Nigeria and other OPEC Nations to get more money) So, the world is now moving into economic precarity as a result of shortage of oil and gas. As mentioned last week by this writing about 48% of global oil and gas has been deposited in the Middle East. This war will seriously affect the supplies of energy to the world.
Read Also:US/Israel/Iran: the Most Global Economic Fragile Area
The conflict between the US, Israel, and Iran is indeed pushing the global economy towards instability, primarily due to the critical role the Middle East plays in global oil supplies. The Strait of Hormuz, which Iran has threatened to block, is a vital waterway for oil shipments, accounting for approximately 20% of global oil production.
Key Impacts:
Oil Price Surge:
Oil prices could hit $100 or more per barrel if the conflict escalates, driven by supply disruptions and heightened uncertainty.
Global Economic Risks:
Higher oil prices may fuel inflation, impact global economic growth, and lead to increased market volatility especially in the emerging markets of Africa, Asia, Middle East and Latin America as well as in the Eastern European Nations and even in the advanced economies of US and other Northern Global Hemisphere.
Regional Instability:
The conflict threatens regional stability, with potential spillover effects on neighboring countries.
Iran’s Strategic Leverage:
Iran’s location near the Strait of Hormuz gives it significant influence over global oil trade. The country’s threats to block the Strait have already caused oil prices to rise in the global markets.
Potential Consequences:
Higher gas prices for consumers
Increased costs for industries reliant on oil and gas
Potential disruptions to global supply chains.
To be Continued insha’Allah
Abbati Bako, global political analyst
abbatibako@gmail.com
