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US-Iran Conflict in Historical Perspective

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The US-Iran conflict has become critical in wake of US Drone Strike that assassinated Iranian top general Qassem Suleimani since the US considered him the imminent threat to the United States but Trump administration has been heavily criticized by Political Circles.

The political analysts and foreign policy experts are of the view that Donald Trump has committed the extrajudicial killing of General Suleimani and has deliberately escalated the situation with Iran to escape impeachment which is likely to commence as Nancy Pelosi has announced the impeachment managers. The Impeachment Process has already begun.

In a historic perspective, the US has always meddled in the affairs of Iran. The 45 years of hostility towards Iran has sowed the seed of hatred when US and UK agencies orchestrated a plan against a democratically elected secular Prime Minister Mohammad Mossadeq to overthrow his Government since he tried to nationalize Iran’s Oil Industry.

Oil has been the alluring industry for the US and Mossadeq’s attempt to nationalize Iranian Oil cost him his Premiership in 1953.  The Political Analysts call it a historical blunder to meddle in the affairs of Iran.

Later, the US-backed the dictatorial ruler Shah of Iran- Mohammad Reza Pahlavi despite being aware that his regime was incompetent and the rising autocratic Governance model has been weakening.

The streets started flooding with protesters against Shah of Iran’s Regime and he was forcibly ousted by secular and religious forces in 1979, known as the Islamic Revolution.

This growing dissent and turmoil in Iran paved the way for the return of the exiled Islamic Religious leader Ayatollah Khomeini. The referendum was held and Iran was formally proclaimed as the Islamic Republic of Iran on 1s April 1971.

US backing to Shah of Iran resulted in growing hatred and antagonism against America. The angry protesters ransacked the US Embassy in Tehran and made the whole staff as a hostage in 1979. After President Ronald Reagan took the office, the 52 hostages were released by Iran after 444 days in 1981.

US-Iran relations witnessed another Setback when the US secretly shipped arms as the exchange of Iran’s help in the release of US hostages held by Hezbollah militants in Lebanon. This Iran-contra scandal-hit US hard when the benefit such as arms supply channelled to rebellion group in Nicaragua that caused a severe political crisis for American President Ronald Reagan.

Similarly, as Iran has mistakenly downed Ukrainian Passenger jetliner in which 176 passengers were killed, American warship had also shot down an Iranian Passenger plane killing all 290 passengers on board.

Most of the victims were Iranian pilgrims bound for Makkah. Unlike Iran, the US had made a similar statement that the Airbus A300 was downed by mistake considering it a fighter Jet.

This incident had also increased antagonism and hatred against America in Iran.

In the aftermath of the 9/11 incident, in 2001, the US carried out strikes against Taliban in Afghanistan terming Osama bin laden as a most wanted terrorist and for the regime change in Afghanistan.

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Meanwhile, the Iranian opposition group revealed that Iran has been engaged in nuclear Program having set up Uranium enrichment Plan, however, the Iranian Government denied such charges.

American President George W Bush during his union address denounced Iran as part of an “Axis of Evil” along with Iraq and North Korea, thus opening another chapter of conflict.

The UN Watchdog IAEA inspected Iran’s Nuclear Program. Consequently, tough sanctions were imposed on Iran by the US, EU and UN that crippled its economy during the regime of President Mehmood Ahmed Nejad. The economic sanctions devalued Iranian currency that caused abrupt inflation and economic condition became volatile.

The relations between US and Iran grew closer as the moderate and secular president Hassan Rouhani took office and after decades of stiff relations, the ice started melting when US president Barak Obama phoned Hassan Rouhani after three decades.

Following such gesture from the US, the diplomatic channels worked for Iran prompting to sign a long-time nuclear deal in 2015 with great power group containing  US, UK, France, China, Russia and Germany.

Through the deal, Iran agreed to limit its nuclear programme allowing International Inspectors. In return, the crippling economic sanctions were lifted that had affected the country very hard especially its Oil exports -the main source of income for the country to strengthen its economy.

Trump administration has become a great headache for Iran since Iran’s nuclear deal was abandoned by President Donald Trump and threatened to impose economic sanctions against Iran and against those who intend to buy oil from Iran.

Such a hard attitude instigated the conflict even further since the Iranian Economy was already under heavy recession.

As a result of above the statement, US President Donald Trump re-imposed tough economic sanctions on Iranian Oil in May 2019 while Iran started a pressure campaign against the US.

The series of Incidents happened thereafter such as Explosions hitting tankers in Gulf of Oman and Iran’s shooting down a US drone hovering over Strait of Hormuz. The US claimed the drone was over International waters whereas Iran said that it was over their Territory.

Given the US Sanctions and blame game, Iran started rolling back from its commitments as reflected in the nuclear deal and started Uranium enrichment.

Finally, when US Drone strike assassinated Iranian Top General Qassem Suleimani in Iraq, the Iranian people became united.

Millions of people attended the funeral prayers of General Qassem Suleimani and protested against America in Iraq and Iran.

The analysts said that it was the biggest protest after the 1979 Islamic Revolution in Iran as millions of people participated in the last rituals of General Qassem Suleimani.

Iran announced to take revenge to shun angry protesters that demanded retaliation against US aggression.

Under-Pressure Iran’s Supreme Leader Ayatollah Khamenei approved targeting US Military basis in Iraq by firing dozen Cruise Missiles but there were no casualties.

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Since then, Donald Trump has been heavily criticized for the extrajudicial killing of General Qassem Suleimani. Even Middle East crisis worsened following the Iraqi Parliament resolution demanding US Troops and Allies for leaving Iraq after Qassem Suleimani’s  Assassination. The Iranian Proxies may attack US military basis since Iran has a strong network of proxies in Iraq, Yemen, Syria and Palestine.

Now the Questions arises that will it be a world war-III the answer is “No” since, after strikes, both countries have shown sensibility and restraint as plane tragedy has spread shocking tremors after Iranian Revolutionary Guards claimed the responsibility of mistakenly downing a Passenger Jet carrying 174 passengers in the limits of Tehran’s International Airport. Iran, at first, denied the incident, but after international pressure accepted that the passenger jet was downed by mistake.

Iran has publicly apologized for the mistake and announced compensation for the bereaved families but the Ukrainian and Canadian Governments have demanded a thorough investigation and apologize through diplomatic channels.

Mike Pompeo has also sought help from Pakistan for de-escalation as both countries do not want war. All the world powers have urged both the US and Iran to de-escalate tensions and resolve the conflict through negotiations.

The European Union, UK, Russia, China and other NATO members have started diplomatic efforts to prevent both countries going to all-out war as War will bring miseries and destruction for humanity since both nations are nuclear capacious though Iran has not announced its nuclear capability.

UN and European Union must play their role to engage both parties in negotiation so that Possibilities of World War-III may be averted to save humanity falling prey to destruction, hunger, Economic crisis, homelessness and disease. Negotiations will also pave the way for the lifting of tough economic sanctions against Iran that have crippled the fragile Iranian Economy causing Inflation and Price hike.

Moreover, US-Iran conflict may jeopardize US-Taliban talks for which Pakistan has played a key role to make the deal Possible as Afghan Peace will be beneficial to the whole region including Pakistan. Terrorism emanating from Afghanistan has affected Pakistan very badly especially Economy that has also been volatile owing to corrupt practices of politico regimes and rising debts.

The world must wake up from the slumber to play their role to de-escalate the tensions between US –Iran so that diplomatic relations stalemate may be scrapped and the new chapter of Economic cooperation and relations may be written that will benefit the people of both beleaguered Nations having tumultuous and alienated history causing the existing crisis that has made the Middle East and Gulf Crisis even worse.

Given the situation in Lebanon, Syria and Iraq, world leaders especially EU and UN must come forward to save the humanity falling prey to World War III that will be disastrous and destructive owing  Nuclear Technology. The world cannot afford to see tragedies like Hiroshima and Nagasaki

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Crypto

Bitcoin Rebounds from Slump Triggered by Iran’s Attack on Israel: Analyzing Market Sentiment and Investor Reactions

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Introduction

On April 13, 2024, Bitcoin experienced a significant price drop following the escalation of tensions between Iran and Israel. The attack on Israel by Iran led to a sharp decline in the price of Bitcoin, causing concern among investors and market analysts. However, the cryptocurrency market has shown resilience, with Bitcoin rebounding from the slump, indicating a potential recovery in the market. In this blog article, we will analyze the impact of the geopolitical event on Bitcoin’s price, market sentiment, and investor reactions.

Impact on Bitcoin Price

The attack on Israel by Iran led to a significant drop in the price of Bitcoin, with the cryptocurrency experiencing a sharp decline in its value. According to CoinMarketCap, the price of Bitcoin dropped from $25,987.73 to $24,427.20 within a few hours of the news. This decline can be attributed to the uncertainty and fear among investors, as geopolitical events can have a significant impact on the global economy and financial markets.

Market Sentiment

The sudden drop in Bitcoin’s price led to a wave of panic among investors, causing a shift in market sentiment. According to data from CoinMarketCap, the market sentiment for Bitcoin shifted from “Neutral” to “Negative” within hours of the news. This change in sentiment can be attributed to the fear of potential economic instability caused by the geopolitical event.

Geopolitical Events and Bitcoin

Geopolitical events have a significant impact on the cryptocurrency market, particularly on the price of Bitcoin. In recent years, we have seen how events such as the Russia-Ukraine conflict, the COVID-19 pandemic, and the ongoing US-China trade war have affected the cryptocurrency market. The attack on Israel by Iran is just another example of how geopolitical events can cause volatility in the market.

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Investor Reactions

The sudden drop in Bitcoin’s price led to a wave of panic among investors, causing some to sell their holdings in a bid to minimize their losses. However, other investors saw this as an opportunity to buy Bitcoin at a lower price, believing that the cryptocurrency would recover in the long run. This divergence in investor reactions highlights the inherent volatility of the cryptocurrency market and the importance of understanding market sentiment and geopolitical events.

Recovery and Future Outlook

Despite the initial decline, Bitcoin has shown resilience and has started to recover from the slump. As of the time of writing, the price of Bitcoin has rebounded to $25,537.95, indicating a potential recovery in the market. However, the long-term outlook for Bitcoin remains uncertain, as the cryptocurrency market is heavily influenced by geopolitical events and market sentiment.

Conclusion

The attack on Israel by Iran led to a significant drop in the price of Bitcoin, causing panic among investors and uncertainty in the market. However, the cryptocurrency has shown resilience and has started to recover from the slump. As we move forward, it is essential to monitor geopolitical events and market sentiment to understand the potential impact on the cryptocurrency market.

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China

Navigating the Economic Transformation: China’s Future Depends on Microeconomic Policies

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Introduction

China’s economic growth has been a significant global phenomenon, with its rapid expansion driving global trade and shaping the global economy. However, as China enters a new phase of its economic development, it faces challenges that require a shift in focus from macroeconomic stimulus to microeconomic policies. This article explores the importance of microeconomic policies in China’s future economic growth and the implications for businesses and markets.

I. The Limitations of Macroeconomic Stimulus

  1. Temporary Boost: Macroeconomic stimulus, such as government spending and monetary policy, can provide a temporary boost to the economy. However, it does not address the underlying structural issues that hinder long-term growth.
  2. Amplifying Economic Shortcomings: Macroeconomic stimulus can exacerbate economic imbalances and inefficiencies, leading to a more significant correction in the future.

II. The Importance of Microeconomic Policies

  1. Structural Reforms: Microeconomic policies focus on structural reforms that address the root causes of economic challenges. These reforms can include labor market reforms, regulatory changes, and infrastructure investments.
  2. Encouraging Business Transformation: Microeconomic policies can create an environment that encourages businesses to transform and adapt to changing market conditions. This can lead to increased productivity, innovation, and competitiveness.

III. The Role of Businesses in China’s Economic Transformation

  1. Adapting to Market Changes: As China’s economy evolves, businesses must adapt to new market conditions and consumer preferences. This may involve shifting from traditional industries to more innovative and technology-driven sectors.
  2. Embracing Innovation: To prosper in the new economic environment, businesses must embrace innovation and technological advancements. This can include investing in research and development, adopting new technologies, and fostering a culture of innovation.
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IV. Implications for Markets and Investors

  1. Changing Market Dynamics: As China’s economic focus shifts from macroeconomic stimulus to microeconomic policies, market dynamics will change. Investors should be prepared for a more volatile and uncertain market environment.
  2. Opportunities for Investors: The shift to microeconomic policies presents opportunities for investors in sectors that benefit from structural reforms and business transformation. These may include technology, healthcare, and environmental sectors.

Conclusion

China’s future economic growth depends on its ability to navigate the complex transition from macroeconomic stimulus to microeconomic policies. This requires a focused effort on structural reforms, business transformation, and a shift towards innovation and technology. As China embarks on this transformation, businesses and investors must adapt to the changing market conditions and seize the opportunities presented by the new economic environment.

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Economy

Understanding the Latest Inflation Figures: Causes, Consequences, and the Fed’s Response

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woman calculating her receipts

Introduction

Inflation, the rate at which the general level of prices for goods and services is rising, has been a topic of concern for economists and policymakers alike. Recently, the US inflation rate has risen to 2.5%, according to the Federal Reserve’s preferred measure, the Personal Consumption Expenditures (PCE) index. This figure is in line with economists’ expectations but remains above the central bank’s target of 2%. In this blog article, we will delve into the causes of this inflation rise, its impact on the economy, the Federal Reserve’s response, and the potential future implications.

Causes of Inflation:

  1. Supply Chain Disruptions: The COVID-19 pandemic has caused significant disruptions in global supply chains, leading to increased demand for goods and services.
  2. Fiscal Policy: Government spending and tax policies can influence inflation by increasing the demand for goods and services, leading to higher prices.
  3. Monetary Policy: The Federal Reserve’s actions, such as adjusting interest rates, can impact inflation by influencing the supply of money and credit in the economy.

Impact of Inflation on the Economy:

  1. Consumer Prices: Inflation directly affects the prices consumers pay for goods and services, potentially reducing their purchasing power.
  2. Interest Rates: Central banks, like the Federal Reserve, may adjust interest rates to control inflation, which can impact borrowing costs and economic growth.
  3. Economic Stability: High and persistent inflation can lead to economic instability, as businesses and consumers struggle to predict future prices.

Fed’s Response to Inflation:

  1. Interest Rate Adjustments: The Federal Reserve has the ability to adjust interest rates to control inflation, which can impact borrowing costs and economic growth.
  2. Communication: The Fed communicates its monetary policy decisions and future expectations to the public, which can influence market expectations and economic behavior.
  3. Inflation Targets: The Fed has set a target inflation rate of 2%, which it aims to maintain over the long term.
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Future Implications of Inflation:

  1. Monetary Policy: The Fed’s response to inflation will depend on its assessment of the current economic situation and future expectations.
  2. Economic Growth: High and persistent inflation can negatively impact economic growth, as businesses and consumers may reduce spending and investment due to uncertainty.
  3. Policy Coordination: Central banks, governments, and international organizations may need to coordinate their policies to address inflation and promote economic stability.

Conclusion
The recent rise in US inflation to 2.5% is a cause for concern, as it remains above the Federal Reserve’s target. Understanding the causes of this inflation, its impact on the economy, and the Fed’s response is crucial for policymakers and investors alike. By addressing these issues, we can work towards maintaining economic stability and promoting sustainable growth.

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