Iran crisis: Is global recession imminent?

As if tariff isn’t enough to put the world on notice of possible economic disaster, missiles and drones rained in Iran and the Gulf Region to make certain that recession is imminent.

- Fidel O. Abalos

Let us be clear though that a war per se in certain regions may not necessarily lead to a global recession. Take the case of the Russian invasion of Ukraine. Yes, it resulted to oil prices breaching US$120.00 per barrel on March 8, 2022 or just twelve (12) days after. Then, European benchmark Brent North Sea oil reached US$133.18 while New York-traded West Texas intermediate hit US$123.64.

This was not difficult to understand though. With the brutal sanctions from the West in effect, Russia’s oil deliveries were disrupted. Kudos though to Iran for scaling up its production, oil prices stabilized a bit. Had it not for its output augmentation, probably, prices could have soared higher.