Donald Trump’s violation of the Iran Agreement may have just edged us to the brink of World War 3.
And that will mean a spike in gold prices.
The US President has been angling for a fight over Iran’s Uranium program even before being sworn into the Oval Office. Trump’s decision to pull out of the agreement and pose sanctions at “the highest level” has aggravated tensions in the Middle-East.
Trump’s decision has drawn significant criticism from world leaders. The Presidents only supporter is Israeli leader, President Benjamin Netanyahu. Without America’s involvement in the Iran nuclear agreement, there is an opportunity Iran and Israel to call the shots – against one another.
And there is history.
The Iran-Israel conflict
For more than a decade a power struggle has been brewing in the Middle-East. Israel has accused Iran of expanding military force throughout the region and has labeled its neighbor as a threat to existence.
Hours after the US announced it was pulling out of the Iran deal, Iranian soldiers were killed after an airstrike on a Syrian army base. Tehran is pinning the blame on Israel.
Tension between the two neighboring countries is already at an all-time high. Iran military Commander, Major General Mohammad Ali Jafari has previously warned an Israeli attack will bring an end to the Zionist regime.
Iran say Israel is bitter about their failed attempts to quell Hezbollah and Hamas. Following the most recent incident in Syria, Irans top military brass reinforced their intention to retaliate, even if a military response unleashed “a global war.”
“War may break out”
Speaking on a state-run TV channel in Iran last month, Brigadier General Hossein Salami remarked that Iran will wipe Israel off the world’s geographical history.
Israeli Head of State, Benjamin Netanyahu has also declared Israel is prepared to defend itself…”whatever the consequences.”
Iran has geopolitical ambitions to dominate and control the Middle-East. Furthermore, they have sufficient military power to achieve those ambitions.
And if they breach the sanctions of the Joint Comprehension Plan of Action (JCPOA) and enrich uranium, they will have nuclear weapons at their disposal as well.
US military chief, General Jack Keane declared there is no political solution, adding the Israelis and the Saudis are spoiling for a fight with Iran.
Tensions increase between US and Russia
The Kremlin has also taken a swipe at Trump’s decision to bail out of the Iran Agreement, calling the deal dead if the Americans pull out. Vladimir Putin has accused Trump of alienating the Iranian people.
Some political commentators believe America’s failure to back its allies in the Iran deal could play into Russia’s hands and reinforce accusation that the US is not trustworthy. Putin added, he is fine with Trumps decision because Russia is on the side of the international community.
The United States on the other hand look like outsiders.
Another conflict in the Middle-East will have a negative affect on the global economy. Oil prices will soar and push up inflation on home soil. In the US, equities will fail, whilst taxes and inflation will rise.
The future does not look bright for the global economy. The only way to hedge against inflation and protect your financial future is to invest in gold.