The Rest Is Money 182. Are Iran and Israel About To Trigger A Global Economic Crisis?
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Jun 18, 2025 Leaders of the G7 are more divided than ever, leaving global strategy in disarray. The calmness in markets about the Israel-Iran conflict raises eyebrows. Discussions delve into potential scenarios that could drive oil prices sky-high while stock markets plummet. The Straits of Hormuz emerge as a critical point for oil transport amidst military tensions. The economic implications of these geopolitical dynamics could trigger significant market reactions, highlighting the precarious balance of global economic stability.
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G7 Disunity on Israel-Iran Conflict
- The G7 leaders showed unprecedented disunity over the Israel-Iran conflict at the summit.
- This division undermines coordinated efforts to secure peace and manage global impacts effectively.
Straits of Hormuz - Global Oil Chokepoint
- The Straits of Hormuz is a critical chokepoint for around 20% of global oil shipments daily.
- Disruption there could trigger a severe global economic shock due to surging oil prices.
Markets React Calmly to Conflict
- Market impact from the Israel-Iran conflict so far has been muted, despite initial fears.
- Investors respect Israel's precision in targeting and doubt Iran's retaliatory capacity.