Ceasefire in Iran
It’s Saturday here in the U.S. and there are supposed to be negotiations going on in Pakistan over the Iran War. Iran is saying that the attacks on Lebanon have to stop and sanctions on Iran have to be lifted or they won’t talk. The U.S. says that the Strait of Hormuz needs to be opened or they won’t talk. So now I guess they are in talks about talking. That’s diplomacy for you!
The damage to the global economy will not be cured by these actions. Both sides are saying that they won the war, which I guess is typical in this type of situation, but in this case, I think both sides lost. The U.S. says they won because the military threat of Iran has been reduced. Iran says they won because, well, because they still exist, and they control the Strait of Hormuz which means that they have power over the global economy.
Current Status
Inflation is high and prices are going up. Alot of that is because shipping costs are up (with gas prices so high). But it’s also because the Strait of Hormuz is also where farmers get their fertilizer from. Chip manufacturing uses helium that travels through there. I’m sure there are many other things as well. Many supply chain operations are disrupted. They are also talking about Red Sea disruptions which could create even more pressure. What a mess.
Iran has other problems
For quite a while now, Iran has been running out of fresh water. Their reservoirs have been drying up, and the rivers that feed them have been reduced to very low volume. The whole region has been suffering under drought and if this war hadn’t happened, they would already be in trouble from that situation. They have been building dams to try to save as much as possible and redirect water to places where it is needed. But that won’t help if there just isn’t any flow from the mountain waters. We don’t hear much about that with all the missiles being fired off.
Effects on the Market
It has been an up and down year so far. Investors seem to be shifting their focus back and forth between defensive stocks and defense companies. They seem to shift to health care and staples and then to companies that make bombs and drones and stuff. Tech has seen a big drop, and it’s all getting very confusing. I feel that where I am placed right now, I just will hold the place I am at and see what happens. I’m saving my cash to be ready if things drop. Besides, my food bill and gasoline bills are going up too! Thank goodness I have solar power for my electricity.
