🇮🇷⚔️🇮🇱Economic consequences if war breaks out between Iran and Israel

The recent spike in tensions between Israel and Iran can backfire on the global economy, Marc Ayoub, a Lebanese energy policy researcher, and Rodney Shakespeare, a professor of binary economics, told Sputnik.

🔺The oil market may see the increase in crude prices up to $150 per barrel, especially if Iran blocks the Strait of Hormuz, a narrow channel between the Persian Gulf and the Gulf of Oman. Oil tankers carry around 17 million barrels of oil each day through the Strait.

🔺Yemen’s Houthi-led government, part of Iran's Axis of Resistance, are likely to be part of this "closing" the Red sea and creating further logistics problems for global trade.

🔺The potential conflict is likely to rock the economies of regional players and beyond hitting highly indebted nations of the Global South. A Minsky moment – a sudden, major collapse of asset values – may affect huge areas of the global economy due to high levels of debt – personal, corporation, governmental.

🔺The price of gold may double.

🔺Governments are likely to resort to money-printing in order to stabilize the situation thus fanning inflation. The spike in prices and slowing demand could exacerbate matters further.

International foreign affairs experts are split on what kind of response Iran will resort to: some say that Tehran will respond asymmetrically; others insist that Iran may be forced to retaliate in order to deter Tel Aviv from further provocations.

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