Iran has warned global markets to prepare for oil at US$200 per barrel , escalating rhetoric as attacks intensify and shipping through the Strait of Hormuz remains effectively frozen. While oil prices have retreated from recent highs near US$120, Tehran’s message underscores the growing risk of a prolonged energy shock. Key Takeaways Iran warns oil could surge to US$200 per barrel Strait of Hormuz remains blocked, disrupting 20% of global oil flows 14 merchant ships reportedly struck since conflict began IEA expected to propose record 400 million-barrel reserve release Markets currently betting conflict may be contained Oil Market on Edge Iran’s military command said oil prices depend on regional security — warning the world to prepare for US$200 crude if instability persists. The Strait of Hormuz, a narrow chokepoint along Iran’s coast, normally handles: About 20% of global oil shipments A significant share of global LNG trade So far: At least 14 ships have reportedly been struck...
The recent surge of all the prices of the commodities has make me recall about the same situation that has happened globally three years back. Back then, the price of the crude oil surge beyond USD100, the same thing that what we are seeing now.
The surge of the crude oil price and other commodities can have serious effect to a lot of things especially in business. Cost of the raw materials used for manufacturing will increase, subsequently impact their earnings until these companies passed the cost to the consumers - which I assume asap.
Nevertheless, global inflation is real and it is going to stay for quite some time, so we better get used to it until the Fed decided to stop printing the money......or put it in this way, until the US economy recovers.
None of us would want to have reduced purchasing power, but it will happened. There are several things that we can do to cope with the global inflation, rising prices of the goods, properties and many more.
The first to to do to cope with the global inflation is by spending smart. This means that you still continue to buy the NEEDS, while eliminating the WANTS from the shopping list. One good way is to buy goods in bulk in hypermarket like Tesco and share with family or friends and then pay according to the portion that you requires. This can be done by taking turns to do groceries during the weekends. Buying goods in bulk usually turns out to be cheaper. Not only we can save from the groceries, we get savings from less car usage, petrol and car maintenance cost.
Next, we can try increase our income by a lot of ways....rental income, free lance jobs, dividend income, FD income. This is where invest wisely comes in as FD usually is not enough to offset the inflation, so it is not wise to put all the savings in FD. Just save enough for emergency use in FD, and invest in either properties for rental income or dividend stocks, as these two can give you something to offset the inflation.
In summary, to cope with global inflation, we need to spend smart and invest wise. There are a lot more examples from smart spending and invest wisely, but I think this post is long enough, so maybe I will just leave it for the next post.
The surge of the crude oil price and other commodities can have serious effect to a lot of things especially in business. Cost of the raw materials used for manufacturing will increase, subsequently impact their earnings until these companies passed the cost to the consumers - which I assume asap.
Nevertheless, global inflation is real and it is going to stay for quite some time, so we better get used to it until the Fed decided to stop printing the money......or put it in this way, until the US economy recovers.
None of us would want to have reduced purchasing power, but it will happened. There are several things that we can do to cope with the global inflation, rising prices of the goods, properties and many more.
The first to to do to cope with the global inflation is by spending smart. This means that you still continue to buy the NEEDS, while eliminating the WANTS from the shopping list. One good way is to buy goods in bulk in hypermarket like Tesco and share with family or friends and then pay according to the portion that you requires. This can be done by taking turns to do groceries during the weekends. Buying goods in bulk usually turns out to be cheaper. Not only we can save from the groceries, we get savings from less car usage, petrol and car maintenance cost.
Next, we can try increase our income by a lot of ways....rental income, free lance jobs, dividend income, FD income. This is where invest wisely comes in as FD usually is not enough to offset the inflation, so it is not wise to put all the savings in FD. Just save enough for emergency use in FD, and invest in either properties for rental income or dividend stocks, as these two can give you something to offset the inflation.
In summary, to cope with global inflation, we need to spend smart and invest wise. There are a lot more examples from smart spending and invest wisely, but I think this post is long enough, so maybe I will just leave it for the next post.
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