© AP Photo / Gerald Herbert
Donald Trump’s ultimatum-style approach to revisiting nuclear talks with Iran sparked a new escalation of tensions. It comes against the backdrop of the US President's tariff and trade war with Europe, China and other countries.
Retaliation by Iran to any military attack by the US could choke off oil routes such as the Strait of Hormuz and Bab al-Mandeb in the Red Sea, crippling the woorld's supply, energy expert Dr Mamdouh G. Salameh told Sputnik.
“This would immediately impact 20 mbd of oil and 77 million tons of Qatari LNG passing through the Strait of Hormuz,” noted the international oil economist.
Brent crude oil price could initially surge to $110-$115 a barrel.
The same would apply to LNG prices, with Europe getting hit the hardest.
Global economic growth could be cut by 2%-3% if the disruption lasts 2-3 months.
A conflict with Iran amid a tariff war that the US is unlikely to win could set off an inflation spiral that would impact every American household, added the pundit.
Dr Mamdouh G. Salameh clarified that:
The US is highly dependent on imports, importing $4.0 trillion worth of goods in 2024
The US manufacturing sector has been shrinking for years hitting 10% of US GDP in 2024 compared with 30% for China.
The Federal Reserve upwardly revised its target for US inflation in 2025 from 2.5% to 2.7%.
It also downgraded its target for the US growth rate in 2025 from 2.1% to 1.7% blaming the revisions on Trump’s tariffs.
https://sputnikglobe.com/20250401/trumps-hot-war-with-iran-could-trigger-inflation-apocalypse---expert--1121723225.html
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