President Trump announced "major combat operations" against Iran this morning. Citing the imminent danger that Iran and it's support groups pose to the United States. Specifically nuclear and long range missile threats. The United States believes Iran or it's support groups have the ability to make a nuclear bomb and the US fears that threat.
Iran has already began retaliating by launching missile and drone strikes toward Israel and U.S. military installations in the Gulf. Explosions have been reported near bases in Kuwait and Qatar
This is the first daylight raid the US has done in this area in a long time.
This is the first public joint operation. The President wants everyone to know this happened.
This morning's strikes are targeting missile factories, naval assets, and leadership compounds.
How does this relate to the June strikes? Where we supposedly setback the Iranian nuclear program 2 years. Those strikes were not as effective as thought. The underground bunkers remained largely intact. So the US is trying to further delay their nuclear program with a longer term operation.
What is the broader picture, relating to the economy?
Is Israel prompting the US to start this conflict to boost their economy to fund the ongoing war with palestine? That's a complicated questioned and very faceted. Short answer no. A large scale war with Iran brings too many further complications and would not be worth it to Israel.
For the United States this means increased economic activity in manufacturing, specifically in Ohio and Florida where munitions and hardware are developed. The other face of this is shipping costs and Oil prices. If the conflict reaches major shipping lines like the Strait of Hormuz oil prices could jump to over $100 a barrel.
I agree that the military action could boost jobs and manufacturing. But it could also raise other costs, like the price of making products and the gas we pay for our cars, since oil prices might go up.
ReplyDeleteI think going forward with this operation, oil prices will be a huge thing to watch. Much of the worlds oil supply comes from the Middle East, so prices could rice substantially. It is interesting to see that we need to go back so soon, as the news coverage on the previous attack was that they were very successful in destroying their nuclear ambitions. This could've been an overoptimistic approach, or we just didn't have enough data before we started putting out statements and news articles.
ReplyDeleteThis choice to be in a war by our president is very interesting to me right now. All these promises that he's been giving about lowering prices seems to contradict his current actions. While an increase in domestic jobs is good, a decrease in world oil supply seems to outweigh any "positives" in my eyes.
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