War with Iran inches closer and your finances could suffer

Photo credit: Pixabay, CC0 Public Domain, https://pixabay.com/en/iran-flag-middle-east-grunge-1151139/
Photo credit: Pixabay, CC0 Public Domain, https://pixabay.com/en/iran-flag-middle-east-grunge-1151139/

Iran’s aggressive violations of weapons bans are drawing a sharp response from President Trump, who slapped new sanctions on the terrorist regime and did not rule out military action in the Middle East.

The decision comes after Iran tested new ballistic missiles, which is prohibited under the nuclear deal they signed with then-President Barack Obama.

Iran is also funding Islamic militants fighting a civil war in Yemen.  Those jihadists are firing on Saudi shipping vessels and U.S. naval ships, using weapons purchased by Iran.  They fired on the Saudi ship thinking it was a U.S. naval vessel.

A 2015 report also finds 1,000 U.S. servicemembers were killed in Iraq and Afghanistan by jihadists funded and supported by Iran.

“Iran’s continued support for terrorism and development of its ballistic missile program poses a threat to the region, to our partners worldwide, and to the United States,” said John E. Smith, acting director of the Treasury’s Office of Foreign Assets Control, in a statement. “We will continue to actively apply all available tools, including financial sanctions, to address this behavior.”

If Iran continues to violate its agreements, military intervention may be Washington’s only remaining option.

That could destabilize oil shipments in the Persian Gulf, Arabian Sea and Red Sea, which could depress the world economy and lead to recession in the United States.

Iran would undoubtedly fire on oil shipments in those waters, leading to chaos in world markets.  Global companies will cut back on investment, leading to worldwide job losses.

It’s happened before.  The 1991 Gulf War was followed by a 1992 recession.  The 2003 Iraq War and 2007 “surge” was followed by a 2008 recession.

Are you prepared for a global financial crisis?