Iranian economy sucks wind

The excitement increases between the US and Iran – and the economy breaks even further after the US withdrew from Iran's nuclear agreement last year and restore sanctions.

On Friday, US naval boats were led to the Persian Gulf, days after four oil tankers, including two associated Saudi Arabia, were targeting an apparent sabotage action outside the United Arab Emirates, according to officials in the region, and a Saudi pipeline was attacked. of Iranian-backed Houthi rebels from Yemen, reports reported.

The United States has also ordered non-essential staff outside Iraq and has sent several military assets to the region.

This is a "high-risk situation" for the world's oil market, said Phil Flynn, a senior energy analyst at The PRICE Futures Group and a FOX Business contributor, on Friday.

For Iran's economy, the damage is far since the United States has launched a great form of economic warfare against the Isles Republic of Iran, "said John Hannah, a former national security advisor to Vice President Dick Cheney, during an interview with FOX Business & # 39; Neil Cavuto.

FOX Business takes a look at the Middle Eastern country in the midst of a recession that economists say could be very soon to grow.

Economic Growth is Contracting 6 per cent after entering almost 4 per cent in 201[ads1]8, as tracked by the International Monetary Fund, compared with the US economy at a rate of 3.2 per cent in the first quarter of the year, according to the Department of Commerce.

Runaway Inflation

When the economy shrinks, prices are skyrocketing, with an increase of over 32 percent. Higher inflation makes it more expensive for consumers to buy goods and earn In the US, inflation has been persistently below 2 percent range, the preferred level of the Federal Reserve.


Soaring Unemployment

Iranian youth has been given an economy that has few jobs. Unemployment is currently around 12 percent, according to (which the US has the strongest labor market for more than 50 years). Unemployment fell to 3.6 percent from April, while employers created a robust 263,000 new jobs. To date, there are more job openings, 7.5 million than there are available workers to fill these roles. Last check on 5.8 million Americans was in the labor market.

Iranian oil is contaminated

Oil, the lifeblood of the Middle East, can help Iran limit its economic spiral – or even reverse it. But Trump lowered the oil boom by not renewing exemptions to buyers of Iranian crude when they expired on May 2.

This means that any country that continues to import Iranian oil will be subject to US sanctions.

The Associated Press contributed to this report.

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