The highest risk in the present international economy is the
inflation of oil prices. For instance, a barrel of Bent crude increased from
$100 in 2010 to $125 now. The tension between Israel and Iran caused a
significant increased in oil prices in 2008. Furthermore, the global recession
that took place lately was worsened by the escalation of oil prices. Iran
reacted to this by intensifying pressures in the Gulf. Iran’s development of
nuclear weapons was inhibited by the latest attacks on Israeli embassies. In
response to that, fails force was utilized. The US went against Iran by
offering bunker-buster bombs and refueling planes to Israel. The two armies are
also conducting combined military training. The influx of oil prices could
potentially lead to US facing a global slowdown. This could be turned into a
recession if a military conflict occurs, which is highly possible because
tension in the middle east have not been declining.
Presently, oil is now above the 100 barrel. Oil prices will
be pushed much higher, even though there is little growth in advancing
countries and even if there is no military conflict. This might cause a global
recession.
No comments:
Post a Comment