THE THIRD OIL SHOCK IS COMING
CRUDE OIL AND IRAQI INVASION OF KUWAIT
There was also another, less dramatic price
spike in the early 1990s.
Saudi Arabia find that unacceptable. But at this point, a war is the only thing that could reverse the trend.
There was also another, less-dramatic price spike in the early 1990s. It happened after Iraq invaded Kuwait, triggering the first Gulf War. Oil shot up over 70%, as you can see in the above chart. The Middle East is divided into two basic geopolitical camps. On one side, you have the U.S. and its allies (like Israel and Saudi Arabia). On the other side, there’s Russia and its allies (like Iran and Syria). You likely know that a bloody conflict has been raging in Syria for nearly seven years. It’s the most significant military conflict on the geopolitical chessboard today. The U.S. side, working through its proxies, has been trying to overthrow Syria’s leader, Bashar al-Assad. Meanwhile, Russia and Iran have massively fortified his regime. Assad is still firmly in charge. This has shifted the regional balance of power toward Iran. The U.S., Israel, and
TEAM TRUMPWANTS TO BOMB IRAN
Iran will almost certainly be the focal point of the Middle East’s next regional war. Many people think that war has already started. The U.S. government’s assassination of Iranian general Qassem Soleimani is a watershed moment. I only expect the conflict to escalate from here. Aside from what appears to be the start of an actual war, there have been numerous, unambiguous signs that the U.S. has Iran in its sights. To start, President Donald Trump has staffed up on known war hawks. Mike Pompeo, his
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February 2020
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