- By: Adnan Wazir, JMC UOP
War is very dangerous for everyone. It mainly affects human lives because, during war, both sides try to damage each other as much as possible. They focus on the most important and sensitive parts of their opponent’s system. For example, if a war occurs between China and America, both countries will try to target each other’s key resources and areas of dependency. Since both are powerful countries, such a war would affect the entire world.
The same situation applies to a possible war between Iran, Israel, and United States. This kind of conflict would have global effects, especially on the United States. America could be affected in several ways, including economic issues, technology disruption, and the petrodollar system. Because of these factors, the whole world could become unstable.
First, it is important to understand the petrodollar system and why it matters. The petrodollar system is based on agreements between the United States and countries like Saudi Arabia since 1974. According to this system, oil is sold in U.S. dollars. In return, the United States provides security to these countries. Since oil is essential for all countries, they need dollars to buy it. This increases the value of the dollar and strengthens the U.S. economy. Countries buy oil in dollars, oil-producing countries receive those dollars, and then they often invest that money back into the United States.
Now, if Iran blocks the Strait of Hormuz for a few weeks, it could seriously affect global trade. This route is responsible for transporting a large portion of the world’s oil, gas, and other important resources. If Iran stops the movement of oil, gas, and fertilizers, global supply would decrease. This would lead to higher prices and shortages around the world.
Iran could also decide to allow only certain countries, such as China, to trade through this route or to buy oil in other currencies like the Chinese yuan. This could reduce the dominance of the U.S. dollar in global trade.
The war would also affect Middle Eastern countries, especially the United Arab Emirates. Due to insecurity and military tensions, investors might withdraw their money from these countries. This would weaken their economies. Increased attacks on military bases and rising instability would further reduce confidence among investors.
As a result, global inflation would rise because the supply of oil, gas, and fertilizers would decrease. Many factories around the world would shut down due to a lack of resources. When factories close, production stops, unemployment increases, and economies suffer.
In conclusion, a war between Iran, Israel, and the United States would not only affect the countries involved but would have serious consequences for the entire world. It would impact global trade, energy supply, economic stability, and human lives.