How would a war with Iran affect oil prices and the economy?

Question

Though not required, if you have sources, please cite them. Thanks!!!

And yes, I know the US does not buy any oil from Iran, but what affect will a halt in their exports have on US oilo prices?

Answer 1

While it's TRUE that Iran doesn't send Oil directly to the US, it STILL has absolute control over who it sends to everyone ELSE. And if we were to Attack Iran for ANY reason, then they could simply cut off THEIR contribution of Oil to the World Market (a not too inconsiderable "contribution"- I might add)- & drive up the price of OIL simply by reducing the available Supply. Since that Supply is pretty much "maxed out" as it IS- you can only IMAGINE what that might do to Oil & Gas prices. Factor in the inevitable "Uncertainty" that happens with ANY kind of military conflict- & I think it's pretty obvious that our Energy costs would go through the ROOF- & our Economy would take a VERY serious hit... None of this is "rocket science" when you think about it. But it certainly gives one plenty of "food for thought"- when it comes to entertaining the Idea of launching any kind of military action against Iran... :(

Answer 2

Oil speculators are the main reason oil is going up. Iran actually sends us very little oil when compared to the amount we get from Canada and Mexico. These speculator are the reason why oil is getting so expensive and it will increase transportation cost across the board. So the the cost has to be paid by someone and the common person will pay for it by paying the increase through higher cost in goods and services. whether or not it causes a recession in a area depend on how much oil money is coming back into your community. For example area like Seattle and new york that don't support the actually production of oil and it product would be ultimately hurt because none of the money are paying is coming back to the community. However places like Houston or Dallas receive a very large return from this industry from the jobs created and all the support these people need. So our area economy is actually very strong and will be with high oil prices.

Answer 3

Oil prices would go through the roof. The powers-that-be at OPEC have a track record of raising prices whenever any goings-on in the Persian Gulf region make them a little nervous. (I have a pet theory that if one of them has an upset stomach the night before a meeting, the price of oil goes up by a dollar a barrel. :-P) Heaven knows how they'd react to a shooting war in Iran!

Answer 4

No. I even have not supported him interior the years he has been in workplace. I knew he replaced into going to be a foul president and he has no longer disappointed. He follows interior the footsteps of Reagan who replaced into very undesirable, George Bush Sr who replaced into undesirable, and this Bush tops all of them. the biggest risk to this united states has been this administration for the reason that 9/11. He has been a risk to civil liberties, alienating us from our buddies interior the international, going to conflict against a rustic that had no nuclear weapons rather of chasing Bin weighted down in Afghanistan, forgetting with regards to the destructive and center classification, and rushing to sign a bill to maintain a recommendations ineffective female alive. This guy has in no way had any classification or decency to do the nicely suited factor and he in no way will.

Answer 5

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this pretty much shows why the world needs better understanding and less war. really the OPEC could just NOT sel any oil and you would see US and many countries shrinking. They've used their power as a kind of economic embargo, as a kind of retaliation agains the war on Iraq basically.