#global-economy

#global-economy

The GCC has made itself structurally indispensable to the global economy. This did not happen by accident. It is the result of decades of deliberate sovereign intent.

The most senior officials from the US Federal Reserve, the European Central Bank, and the Bank of England are expected to take part in a desktop stress test to respond to another Lehman Brothers-style collapse.

In less than 36 hours since the blockade was implemented, U.S. forces have completely halted economic trade going into and out of Iran by sea. This blockade has effectively brought Iran's economy to a standstill, as it relies heavily on international maritime trade.

The war in the Middle East will have certainly a huge impact for the Swiss exports because it represents 10% of the total Swiss watch exports, so it's quite substantial.

"This is a system shock," says Nigel Green, CEO of deVere Group. "You have a material energy supply disruption and a structural shift toward fragmentation."

The Iranian choke hold on the Strait of Hormuz evidently had a lot to do with it. By cutting off roughly one-fifth of the world's oil supply over the past five weeks, Iran's blockade of that narrow waterway caused an energy crisis and fears of a global recession that the White House could not abide for long.

The so-called 'petrodollar' system wasn't well understood for most of this time, but a secret deal between Henry Kissinger and Saudi Arabia ensured the dollar would remain the dominant reserve currency.

"We worked hard," WTO Director-General Ngozi Okonjo-Iweala said, adding that the US and Brazil in particular "need more time" to work out their differences over the agreement to impose levies on cross-border online orders.

"It's like a storm closing in on us, and every week brings a new cloud," said John Aylieff, WFP's country director in Afghanistan. "The latest big, dark cloud is the Iran crisis."

The ongoing conflict between the US and Israel against Iran is creating significant challenges for Gulf Arab nations, which are already feeling the economic strain from rising tensions and instability in the region.

By the end of next week it will cost at least $150 more. Sony cites 'pressures in the global economic landscape' for the decision. As sympathetic as one might be to the plight of the modern day tech company in these unprecedented times, some would argue that Sony hasn't really offered anything this generation that makes the PS5 so invaluable it feels worth the extra $150 from what it cost in 2020.