After the hard-hitting scansions by Donald Trump in response to downing the US drone by Iran last week is just making things tough for the countries. As a result, the oil prices are raised to a three-week high.
Here is what political and economic analyst; Shabbir Raziv has to say about the increasing tensions between the nations, he says the United States understands the situation of rising oil prices, “a dramatic impact on the global economy.”
It is solely due to the downing of US drone over the Strait of Hormuz and what he says could be serious damage.
He said “From a purely economic angle, it will have a huge impact” he also sated the data that between 25 to 40 percent of global oil passes through the 29km-long of Hormuz between Oman and Iran.
“We really haven’t come out of the 2008 financial crisis... but as soon as the oil crisis shoots up it will have a significant impact. Some economists are saying that if there is a full-blown crisis in the Gulf region, prices could go to $150 and even $300 per barrel.”
“Now if that happens, one can imagine what the impact is likely to be on the global market. The stock markets will come crashing down; all kinds of other challenges will be faced by the global economy. And certainly, Europe is in no position to sustain that kind of increase or hike in the oil price.”
“Overall, I think just a purely economic and financial situation will be catastrophic for Japan, India, Europe, and many other countries if this situation is taken to its full-blown conclusion as the hawks in Washington wanted it to be,” he said.