Scott Lucas: Trump’s Iran War Limbo Catastrophic for Global Economy and Your Cost of Living

But make no mistake, this limbo comes with catastrophic consequences to the global economy and to our cost of living.

Thanks to the so-called memorandum of understanding, which Trump has signed, the Iranian regime has been given the key to controlling one of the world’s most important energy chokepoints, the Strait of Hormuz.

As you may have become more aware since this war began earlier this year, any disruption to the strait immediately affects oil and gas flows, shipping routes, and market confidence worldwide. Thus, it affects energy prices, inflation, and the stability of the global economic system.

We discussed in detail what makes the situation especially dangerous this time is its nature as a prolonged limbo of attacks, retaliation, and stalled negotiations, with all sides claiming some sort of advantage over the other.

Of course, as one may expect, the markets respond badly to uncertainty, let alone prolonged chaos.

Brent crude rises, transport costs climb, and the pressure spreads far beyond the Middle East, affecting businesses and consumers across the world, as well as the U.S., directly — something that Trump and his supporters cannot escape.

A key point from the discussion is that Iran has actually strengthened its hand by turning the Strait of Hormuz into leverage and by surviving the pressure campaign. Instead of appearing weakened, it can now present itself as resilient and politically stronger at home. Furthermore, they appear to be empowering the Houthis in Yemen, who may have the ability to shut yet another critical choke point at the Red Sea: the Bab al-Mandab Strait.

As a bonus point, the conversation also touches on how this crisis could become an imminent crisis for the GOP, as energy prices and instability continue to rise. With the death of Republican Senator Lindsey Graham, who played a critical role in defending Trump within the GOP, will we witness a potential retaliation against Trump?

Join the conversation now and tell us what you think.