Why Trump and Stock Markets Are Wrong About the Iran War
War-caused economic problems are mounting, can't be solved quickly, and will soon become unignorable
Iran responded on Sunday to President Donald Trump’s latest peace proposal with demands of its own. The United States asked Iran to agree in principle to forfeit its nuclear program and reopen the Strait of Hormuz while it negotiates the details. Iran rejected that, asking the U.S. to pay war reparations and acknowledge Iran’s sovereignty over Hormuz, by which Iran is blocking around 20% of the world’s oil and gas supply. With both countries acting like they have the upper hand, a war-ending deal is impossible.
Trump has insisted Iran has been “defeated militarily” and reassured that “as soon as the war is over, which will not be too long, you’re going to see oil prices drop.” Wall Street has appeared similarly confident. For example, JP Morgan’s latest guidance said, by June, oil shortages will “force the reopening of the Strait of Hormuz, one way or another … following a clear and credible announcement ratified and confirmed by both sides.”
But no politicians or bankers have explained how this will happen, and their complacent insistence that it will work itself out delays the hard choices necessary to resolve the war. Resource shortages are growing, and…
Read the full article for free at MS.NOW here: https://www.ms.now/opinion/trump-wall-street-iran-war-stalemate