War affects everyone, so even the threat of war is making the world nervous. In the financial sector, anxiety could drive up the prices for things like oil or gold. Trump’s war cry against Iran is definitely creating the atmosphere for drastic change, and the following should help you see what is going on.
How Did America and Iran Get Here?
Trump is a proud individual, which is probably one reason why his impeachment is gnawing at him. He tries to diminish its importance, but the reality is he’s going to go down in history as an impeached President of the United States.
Couple his wounded ego with an attack against a US-Iraqi base that killed an American, and you’ve got a recipe for an over-the-top response. Here is where Iran’s questionable history worked against the country.
Trump was given a number of ways to respond to this attack, and one of those ways included killing General Qassem Soleimani. He could have chosen diplomacy. He could have chosen sanctions, but this President decided to go for blood even if it threatens to destabilize Iran, and it threatens the lives of Americans who might have to die at war.
What is Happening With the Oil and Gold Market?
Destabilization and uncertainty can fluctuate stock markets at a pretty alarming rate. There is no telling what could happen.
Sure, gold is relatively stable since it doesn’t depend on the stability of any country, so the chances are that gold will stay relatively close to its current gold price, or it might rise if the problems between the US and Iran escalates any further.
The US is a finance juggernaut, so something happening to the American dollar could scare anyone. This fear sometimes drives gold prices up since people are eager to protect their money during times of crisis.
Of course, the Middle-East is a big oil provider, so this recent event has definitely scared up oil prices. Right after the attacks, the oil prices surged just a bit. America’s oil prices went up, but it was China where the prices went up the highest compared to other countries.
The oil surge was short-lived because several Republican officials have been able to convince Trump to diffuse the situation that could end up starting a new war. Iranian leadership hasn’t backed down completely, and their talks of retribution are at an all-time high, but Trump’s newfound love for peace is helping to diffuse a problem he technically created.
Gold prices haven’t gone down even though the President of the United States is trying to seek peace with Iran. This is probably because nothing is certain just yet. Many people are too worried to stop investing in gold. Several Americans are suffering economically at the moment, which is one reason many are feeling anxious about what Trump is doing to the American dollar.
There is no telling what is going to happen between America and Iran, but hopefully, it is beneficial for the people in both countries.