Iran May Be Key to U.S. Economy Stability

[pennypinch]

The situation in the Middle East affects the economy in the United States greatly. You may think the biggest factors that determine the state of the U.S. economy are the housing market and losses from large banks. But these aren't the only things that factor in.

At the beginning of this week, oil prices eased a bit and stocks raised in part due to some calming in Iran. But, news this morning that they have test-launched ballistic missiles has oil prices climbing and stocks falling again. We cannot afford any disruption of oil production in the Middle East.

Some experts are stating that oil could move to $150 per barrel if tensions flare more between Iran and Israel. They say if the United Stated jumps in crude could climb to $200.

Chief investment strategist for Raymond James Financial, Jeffrey Saut says oil demand is easing as the economy slows but Irans decision to test the missles didn't help.

Obviously, high oil prices have harmed the United States economy.

Kurt Karl, chief U.S. economist with Swiss Re, said oil prices are hurting small businesses and consumers and it will show up in the next several months. He said he thinks oil will remain between $135 to $150 the rest of this year but there is a 10% to 15% chance oil could raise to $200 a barrel.

Partly due to oil prices, 73,000 jobs have been lost per month so far this year. If oil prices are not stabilized, we could start to see that number raise to 200,000 per month.

Experts say if war with Iran is averted, consumers and investors may be able to let out a sigh of relief.

[moneysense]

The economy is in bad enough shape right now. People are going to have an extremely hard winter this year with oil prices what they are now. How are people going to be able to heat their homes if oil prices keep climbing?

And the job losses per month are entirely out of hand. These people are really going to suffer if a comprable other job cant be found to replace the lost one.

I was under the impression, all this time, that there were no missles in Iran. But, since that is not the case, and they have test fired them, what does that have to do with oil prices rising?

[pennypinch]

My understanding is that there is some sort of clause that Iran is not supposed to have this type of weapon. With all of the turmoil going on, I am sure this is a great concern to many countries, including the United States. The reason this affects oil is because if it would be necessary for us or other countries to go to war with them, oil production would be greatly affected. The Middle East is where we get most of our oil.

[dimetime]

This is startling news, I too was under the impression that Iran had no missles.Seeing this news is disturbing enough, yet to add that the loss of jobs may increase is even worse. People are already suffering through great hardships, and the indication that oil prices may increase will cause people to suffer even heavier losses. There has to be something that can be done. The people are already having alot of trouble making ends meet, if prices of oil continue to rise, and the number of jobs decreases, what will happen? I do hope that there is no war, and that the price of oil is soon stabilized.