If you are tired of paying high gas prices, things could be getting much worse over the next few months according to Matt Badiali, a leading natural resource expert. Badiali lists America’s withdrawal from the Iran deal as the reason for his predictions.
Because Matt Badiali has more than two decades of experience in the global energy market, many people are taking his warning seriously. You will soon learn everything you need to know about this issue and several of the most likely outcomes. This information will give you the opportunity to prepare for an uncertain future so that it does not catch you off guard.
Ending the Iran Deal
President Donald Trump recently announced that he is ending the Iran deal, an agreement Iran made with the U.S. in 2015 in exchange for the removal of trade sanctions. Trump believes that the deal is flawed and offers no long-term benefit, and the sanctions will likely return unless Iran can reach a new agreement with U.S. diplomats. Rather than instantly imposing new trade bans, Trump plans to do so in stages over the next few months to give the market time to prepare. In a bold move, Trump also stated that the U.S. will no longer do business with any nation that violates the new sanctions.
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— Matt Badiali (@MattBadialiGuru) August 10, 2018
Why Placing Sanctions on Iran Could Cause Problems
When you look at the number of oil barrels Iran has exported over the past few years, you will see why imposing new sanctions could disrupt the global market. Iran has exported an average of 2 million barrels of oil per day since January 2017. Sanctions that prevent Iran from trading with the largest nations in the world will have a major impact on the global economy.
As a former geology teacher at the University of North Carolina, Matt Badiali understands how fragile the natural resource market can be. He has combined his knowledge as a talented geologist with his skills in investing to predict what the next three to four months have in store for the United States and its allies.
No Margin for Error
Although Trump’s sanctions could remove millions of gallons of oil from the global market, some experts disagree with Badiali, saying we have nothing to fear. Those who disagree with Badiali’s assessment protest that the market has 900,000 extra barrels of oil per day. The problem, though, is that restricting Iran’s ability to trade removes the margin for error.
Once Iran is out of the game, anything else going wrong will cause the price of oil to skyrocket, and not everyone is prepared to deal with that problem. Other countries responsible for the oil trade need to maintain peace and avoid disruption. Once Iran stops trading oil, one mishap would be enough to destabilize the global economy in ways most people would not expect.
When people sit up and take notice, many of them wonder if anything can be done to prevent these predictions from coming true. The status of Iran as a trader of natural resources is the only thing over which the U.S. has any control. If we have any hope to avoid the problems resulting from the sanctions, it’s by finding ways to save the Iran deal and allowing Iran to continue its participation in the energy market. Since no plans are currently in place to achieve that goal, preparing for what is to come is the only option we have.
— Matt Badiali (@MattBadialiGuru) August 9, 2018
Economic Consequences in the U.S.
Most people expect fuel prices to spike once the U.S. implements the sanctions, but the impact of Trump’s decision has consequences most people would not expect. Oil fuels the nation and powers almost everything we do. Parents need gasoline to get their children to school and report to work, and manufacturing plants need fuel to keep their factories operational.
An increase in oil prices means the cost of living will also skyrocket, and this situation could devastate the market and cause many businesses to fail. These issues will impact everyone from corporate executives to the average consumer. Recovering from such a mess could take years.
If the rising oil prices make the cost of living go up, not all businesses will survive the added expenses. Companies that rely on businesses that fail could find themselves in a compromising position, sparking a chain reaction. Other nations have already criticized Trump’s decision to impose trade sanctions on Iran, and the U.S. runs the risk of losing some of its major supporters. While these statements remain speculation, they could become a reality in a short period unless we find a way to keep the Iran deal in place.
An Interesting Opportunity for Investors
While the possible fallout of placing sanctions on Iran could devastate many people, it also creates an interesting opportunity for investors. Savvy investors can anticipate the price of oil spiking and make wise investments that could offer lucrative returns in a short period.
When the U.S. removes Iran from the energy trade, it will open the doors to other companies that strive to fill the gap. Those who wish to capitalize, though, must remember they will be doing so in an unstable economic environment. The possible hazards and fallout offset the potential gains for many people.
Trump’s move to place old and new sanctions on Iran’s oil trade will remove the safety buffer and likely destabilize the energy market. When we lose a major player in the fuel industry, it leaves the U.S. and its allies vulnerable to a range of threats. Any tension in the Middle East could then throw the entire system off balance before most people have time to react.
Those who follow Badiali’s advice are bracing for the fallout to which they could soon be exposed, but some investors are hoping for a silver lining. Nobody can say for sure how the next few months will unfold. But listening to the advice of a proven expert is the most reliable option. No matter where you stand on the issue, the outcome of these sanctions will likely have an overwhelmingly negative impact.
Click here to learn more about Matt Badiali.