US vs Iran, effects on economy

sevenhills

Drivers are already feeling the effects of climbing oil prices, with growing tensions between the US and Iran set to push them higher, according to the RAC.
"Prices at the pump have already increased by about a penny a litre," said Simon Williams, who tracks fuel prices for the company.


I was surprised that the UK stock market did not decline on the news of USA air strikes. Arms companies shares may increase. If there are more troubles, is there likely to be more uncertainty and slowdown in the UK. We are a close friend to the USA, likely winners and losers?

Thrugelmir

Little interest in the trade spate between the USA and China yet Iran causes the roof to cave in. That's social media for you. More interesting story.

Herzlos

Anyone with shares in defense contractors selling to the US will be doing pretty well - war is good business.


I'm not sure anyone else will really notice economically beyond a bit of fuel price increase due to disruption in the Middle East.

sevenhills

I have bought some shares in Shell, it may be all over, but they look good anyway. One of my other shares increased by 40%+ so the money was there.

LHW99

1p per litre is hardly noticeable IMO when there are differences of perhaps 6-10p per litre between supermarket garages and others, particularly those on motorways.

MaxiRobriguez

Probably no impact.

Iran's actions overnight look like a de-escalation to me. Public act of 'revenge' by targeting the US bases allows their government to beat their chest in front of their supporters but it's been done in such a way with limited damage, no casualties and witihin international law that means America does not need to escalate further nor does it have the moral/legal ground necessarily to do so. What is likely to happen (albeit, the Trump factor makes it hard to predict anything) is that both sides stand down from public confrontation and Iran returns to it's favoured Proxy attacks.

Impact on world economy and markets negligible, which is why Europe is flat this morning and US markets look set for a small gain.

On the other hand, a return to the trade war will cause a far bigger problem as markets have priced in a (happy) conclusion to not just phase 1 but beyond.

Thrugelmir

MaxiRobriguez wrote: »

Iran's actions overnight look like a de-escalation to me. Public act of 'revenge' by targeting the US bases allows their government to beat their chest in front of their supporters but it's been done in such a way with limited damage, no casualties and witihin international law that means America does not need to escalate further nor does it have the moral/legal ground necessarily to do so.

Appeases public feelings in the aftermath of the funeral. Future responses will be more subtle and less newsworthy.

Socajam

We in the West are such short term thinkers and Iran fully knows that.  Why strike now whilst the iron is hot, allow the iron to go cold and then strike
Waiting 3, 5 or even 10 years means nothing to them. Whilst we will forget it and move on, this will forever be ingrained in their minds

[Deleted User]

Oil dropped below $59 last week