US/Israel/Iran: the Most Global Economic Fragile Area
By Abbati Bako, Global Political Analyst, Alumnus Kent University and Former Student’s mentor @Kent,Uni,UK
The issue of nuclear power of Iran has been on since 1953 during the regime of late Shah Reza Pahlavi. Since then the question has been whether Iran should be allowed to develop nuclear weapons or not? Israel is the only country in the Middle East that possesses nuclear weapons.
Experts reached a consensus that about 48% of global oil has been in the Middle East. And the fact about that was because crude oil is the most important component as far as global economic interplay is concerned. Crude oil is the backbone of the global economy.
The US-Israel-Iran conflict is a complex and volatile situation that’s impacting global economic stability. The Middle East, where Iran is located, holds approximately 48% of the world’s oil reserves, making it a critical region for global energy security.
Key Factors Contributing to Economic Fragility:
Oil Production and Supply:
Iran is a significant oil producer, and any disruption to its production or exports could impact global oil prices. The Strait of Hormuz, a vital waterway for oil shipments, is a key checkpoint, with around 20% of global oil supply passing through it.
Geopolitical Tensions:
The conflict between the US, Israel, and Iran has led to increased tensions, with Iran’s nuclear program being a major point of contention. This has resulted in economic sanctions, military strikes, and counter-attacks, creating uncertainty and volatility in global markets. Today’s attack on Iran by America and Israel can lead to regional war in the Middle East. America and Israel attacked Iran’s different locations killing school children and Iran retaliated by attacking Israel and American interests in UAE, Qatar, Oman, Kuwait and S/Arabia. Hence the global economy will soon change in the next hours and days.
Global Economic Interconnectedness:
The Middle East is a critical hub for international trade, with many countries relying on the region’s oil exports. Disruptions to oil supplies could have far-reaching economic implications, including inflation, reduced economic growth, and increased market volatility.
Potential Economic Consequences:
Oil Price Volatility:
Conflicts in the region could drive oil prices up, impacting global economic growth and inflation. Oil is an essential ingredient in economic growth and development.
Supply Chain Disruptions:
Attacks on shipping lanes or oil infrastructure could disrupt global trade, affecting economies worldwide. This is very dangerous as far as the global economy is concerned.
Increased Military Spending:
Escalating tensions could lead to increased military spending, diverting resources from other critical sectors.
Abbati Bako, abbatibako@gmail.com
