The ongoing conflict holds phenomenal importance for the global economy. For the first time in the history of world, a general has been assassinated directly by another government. This is in itself a signal and a brake on the global economy. This might be painful for America, which has a colossal dream of being a great America economically and is also an economic model for other countries. The assassination of Qasem Soleimani, the hero of the Muslim world, will have several impacts on America because it might foster uncertainties and cause disruptions. Ayatollah Khamenei, Iranian supreme leader, has shown signs of revenge for the death of the general. This war will not remain between two countries but it will also affect the global economy.
An attempt, however, is made here to highlight some defining economic trends which are used in the world with the aim of prospering. The unscrupulous step by American President Donald Trump has pushed the world to think about the economy again, for every country has seen harmful effects of world wars in the past. America has not only put itself in quagmire but it has also paralyzed the whole world after assassinating Qasem Soleimani.
It is possible that preposterous deeds speak a language of its own, not necessarily requiring words for interpretation. This is, of course, an old concept and there are myriad of examples of how nations created economic quagmires and pushed themselves into pages of history because of violations and using redundant powers on less-powerful nations.
Revenge from Iran might disturb the global economy. If some serious steps are taken by Iran, it will affect the American economy.
Combat breeds combat. Consider this: if Iran seals off the Strait of Hormuz, a sea route between Iran and Oman, it could put a leash on thirty percent of oil supply to America. The halt of oil supply to America could interrupt American economy. American president has created aggravating situation for American economy and also obstructed the path to great America. And let us consider another option. Iran could close sea routes using Strait of Hormuz, and if it seals off completely, the world would witness asphyxiation of oil supply. This revenge could destroy the global economy and have catastrophic results.
On global level, the death Qasem Soleimani has harmed the world business and market. It has already affected oil prices and also gold prices. It has completely disrupted Japan’s marketing sectors. The growing popularity of technological gadgets has been lessened and companies have abnegated themselves from making more technological advancements. American public and opposition party has fallen prey to confusion, and the attention has been diverted from economy to war.
Indeed, in the USA, economic strength is admired, although Trump administration has destroyed that admiration. It is also claimed that Trump assassinated Qasem Soleimani, but he has also destroyed the hope for American public. In the coming future, there could be an economic coalition between different countries and it could isolate America. According to special reports, this year might be the annus horribilis for America because of its warmongering nature.
This step by Donald Trump has pushed the whole world into economic crisis. There are various ways for Iran to trigger full-blown crisis for America on economic level. Strait of Hormuz is quite important for Iran. If it only seals off the Straits of Hormuz, it will affect the whole world and can have unprecedented ramifications for America.
The assassination of Qasem Soleimani has alarmed the economic sector. The global economy is feeling asphyxiated after this incident, and is making the world to think about how to rescue the economy.
The writer is a student of economics at the University of Balochistan.
Disclaimer: Views expressed in this article are those of the author and Balochistan Voices not necessarily agrees with them.
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