Crude oil prices, which have already triggered austerity measures across Asian countries, could see a sharp rise in the coming days as US President Donald Trump weighs the possibility of serious military strikes on Iran after multiple rounds of diplomatic engagements have failed.
Mediators from Pakistan have so far managed to prevent the resumption of military strikes, but Trump’s growing frustration with Iran could push the two countries back into conflict.
While the United States is engaged in a struggle for dominance, Iran is fighting for survival, raising the risk of widespread destruction across the region, including its bitter rival, Israel.
Economically, the war has already caused losses exceeding $500 billion in its first phase. Economies in Asia are witnessing a serious slowdown, with rising inflation in food, energy, medicines and other essential commodities putting additional pressure on the common man.
According to market analysts, prices of essential commodities could surge further in the coming days if the ongoing deadlock continues or if fresh conflict breaks out between Iran and the United States.
Experts believe crude oil prices could jump from $104 to $130 in a short span of time.
Meanwhile, the odds of another round of military confrontations between the US and Iran are quite high, clearly reflected in Pakistan’s recent decision to deploy armed forces in Saudi Arabia.
While regional countries have begun revising their military doctrines after the Saudi-Pakistan strategic agreement, there are indications that Qatar and Kuwait could also seek similar pacts in the coming days. However, a resumption of hostilities would be enough to push several oil- and energy-importing nations into recession.
Also read: Intense negotiations on between Iran and US to end deadlock
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