US/Israel/Iran and the Consequences: Oil Price from $72 to $100 Within Days (2)
By Abbati Bako,Global Political Analyst, and Alumnus Kent University, UK’s European University
In my last analysis on the Middle East crises between America/Israel confronting Iran the writing said it in a clear term that the crises can lead to inflation and economic melt down, precarity in the world of more than 8.4B population which formally in 1950 the population was only 3.5B of which Africa was 250M of which today’s population reaches 18% of global population with debts of about $600B (my country Nigeria’s population in 1960 was 35M of which today’s population reached more than 237+millions).
Hence, economic precarity and unproductive population has been the root causes of security challenges in both Africa and my country Nigeria. Our leaders in Africa must wake up against security challenges. If India and China have similar populations with Africa (18% of global population) and they both have only one leader (Modi and Xi) why should Africa have 56 leaders not one? African leaders must know this ASAP.
The escalating conflict between the US, Israel, and Iran is pushing oil prices towards $100 per barrel, with potential far-reaching economic consequences. The Strait of Hormuz, a critical waterway for global oil shipments, is at the center of the tension, with around 20% of global oil production passing through it.
Key Impacts:
Oil Price Surge:
Analysts predict oil prices could hit $100 per barrel if the conflict escalates, driven by supply disruptions and heightened uncertainty. Hence, it’s now reality. This writing understands that if this regional war persists for a long time; the price of oil in the world can reach as high as $150 per barrel and inflation will severely hit the world. Nigeria and other oil producing nations will gain out of the crises.
Inflation and Economic Risks:
Higher oil prices may fuel inflation, impacting global economic growth and potentially leading to increased costs for consumers in both developed and under developed nations (Western Hemisphere and Southern Hemisphere of the world).
Global Market Volatility:
The conflict is causing market instability, with potential effects on shipping, insurance, and energy sectors.
Regional and Global Implications:
Middle East Stability: The conflict threatens regional stability, with potential spillover effects on neighboring countries especially Africa and Asia.
Global Energy Security:
Disruptions to oil supplies could have significant implications for global energy security and economic stability.
OPEC+ Response:
The OPEC+ group has agreed to increase production by 206,000 barrels per day, aiming to mitigate potential supply disruptions. Oil is the backbone of global economic interplay. Without oil within 3 weeks global economic development and growth will crumble especially in economic emerging markets like Nigeria and other economic emerging markets in Eastern Europe, Middle East, Asia and Latin American nations whereby World Bank/IMF ten prescription areas are under inflammation.
To be continued insha’Allah
Dr. Abbati Bako, Political Strategy and Communications Consultant and PhD,. Scholar in Globalization Policy @Skyline University, Kano Nigeria and former Electoral Commissioner @Kansiec Kano State and former Adviser to Governor Dr. Abdullahi Umar Ganduje on public affairs
