- Looked from any angle, it’s becoming increasingly clear that the US-Israel-Iran war has not only commenced at the most inopportune time but also largely driven by misconceptions, ill-advice, and irrational perceptions determined by no less than an elephantine ego of the President of the USA. That Donald Trump is unpredictable at the best of times is stating the obvious. The global community has come to realise this fact after a series of debilitating tax tariff measures thrust on us by the whims and fancies of the president. Things have come to such a pause now that any measures forthcoming from the maverick, petulant, and impetuous Trump do not cause any surprises anymore. However, the whole world is suffering from the ongoing conflict is obvious.
PC: The Economic Times
- The most visible sign of distress emerges from the critical energy supply shortfall witnessed by the universe in differing ways. Despite unfettered efforts at making Trump see the reason behind the futility of raging a war by acceding to peace talks and eventual ceasefire, things haven’t headed in the way that would offer comfort to all concerned. In simple words, whether Trump’s war on Iran is over or paused, it hasn’t stopped affecting ordinary people’s lives. Americans are paying $4.4 per gallon of petrol, up from $2.9 in Feb. The increase is enough to derail the budgets of poorer households. And now, for the first time in 25 years, a US airline has shut down, unable to balance its books after jet fuel doubled in price. This is the scenario in the USA. Think about others.
PC: Dollar Flight Club
- Mind you, Spirit Airlines was no ordinary carrier. It filled a disappearing niche as an ultra-low-cost airline. Reports say a family trip on Spirit costs up to $1,000 less than on major US airlines. For many, it was the difference between travelling and staying put. Why did Spirit perish? Because it could not raise fares, its typical customer does not have the purchasing power. Many businesses across the world are in the same predicament, if not crisis. Just last week, India raised commercial LPG prices by 48%. LPG fuels not only kitchens but also factories making ceramics and many other things. If a ceramic factory must choose between making economy and premium sinks amid the ongoing supply crunch, it will obviously choose the latter, because margins are higher, and premium buyers have more elastic budgets.
PC: News24
- On the other hand, for poorer customers, even necessities like food can become unaffordable. There are so many stories of migrant workers packing up and leaving because gas to cook food has become unaffordable. That’s a key difference between the US and Asia, and even Europe, right now. The US is hurting from a price shock, but there’s no supply crunch. In fact, US natural gas prices are at a 17-month low due to oversupply. But India, say, has been buffeted by both high prices and tight supply. The people going hungry will be the world’s poor. Thus, it’s meaningless to argue, as Trump has, that hostilities terminated on April 7, when the blockade of Hormuz continues to take a toll on ordinary people’s lives. A better sense should prevail upon Trump.
