Hey everyone, thanks for joining me for this week’s Monday Money. My, do I have a lot to talk with you guys about today! Have you noticed that gas prices are going down? Pretty incrementally at the moment, but they’re going down. Why? We’ll get to that. Another thing I want to chat about is the change the market may face in the coming months, and get your take on it. So, please, stick around for comments, I’d love to hear your thoughts. Anyway, enough potatoes, lets get to the meat!
Have You Heard Of The Nuclear Deal With Iran?
If you haven’t heard of it, chances are, you’ve been living under a rock. But, for those of you who aren’t sure what’s going on there, allow me to explain. Iran has been coming up with plans to create nuclear weapons, and eventually fit them to rockets where they can become “weapons of mass destruction”. This has been going on for some time now. As a matter of fact, the US and UN put their foot down 3 years ago in 2010 putting sanctions on trading.
From then on, Iran was not allowed to trade goods with several of their biggest trading partners. However, about a week or so ago, Iran signed a deal putting minor halts to their operations and agreeing to come to the table and talk out a resolution. In exchange, the strict sanctions that barred trade were removed and Iran is now allowed to once again trade with their biggest trading partners.
So Why Does This Affect the US, We Don’t Trade With Iran
That’s absolutely correct, for more than a decade, we haven’t traded anything other than essential food and medicine with Iran. However, in this case, that doesn’t really matter. The market is a worldwide trading market. Although, we in the US trade very little with Iran, our trading partners trade with Iran quite a bit. In turn, we end up with products, and funding products that come from Iran.
Which Leads Us To Gas Prices
I don’t know if you’ve noticed yet, but I’ve noticed a few cents being shaved off of the price per gallon these days! That’s exciting news. The best news is yet to come though. Iran is a goldmine when it comes to oil. Although we don’t trade with Iran directly, we do trade with foreign oil refineries that are refining Iranian oil.
When it comes to oil, demand will continuously be there, so the prices won’t ever dip too low. However, when there are shortages, the price definitely goes up. Because Iran is now allowed to trade, their oil will be reaching the world market. This goldmine will increase supply quite a bit. So much in fact that by the very nature of supply and demand, experts say the price may go down by more than sixty cents per gallon in the coming months. This, I’m excited for.
So, What Is This Going To Do To Your Investments?
If you’re a smart investor, this is going to make your investments thrive. Just take a look at the industries that are going to really win off of this agreement. First, foreign oil. If you’re not already looking at it as an investment option, you might want to think about it. Also, foreign shipping companies that will be exporting goods from Iran and to the rest of the world. We’re talking about the goods an entire country has to offer. This could be huge for investors if they play their cards right.
Many Are Upset With The Deal
The nuclear deal with Iran has sparked quite a bit of debate among citizens of almost every country in the world. The truth is, Iran didn’t agree to much. Well, they really didn’t agree to anything more than the fact that they would talk, and dial it down just a bit. They still are allowed everything they need to create weapons of mass destruction. However, when you look at what they gain from giving up little, the sides aren’t balanced. They gain everything. All sanctions are lifted. In the world political stance, this puts Israel in a very tough spot.
The deal with Iran is definitely going to do great things for the market. There’s no doubt about that, but have we sold ourselves short. I mean, Iran still has the capacity to build nuclear weapons. Although, this move will be good financially for the world, is it one that will lead to the loss of civilian life? If that’s the case, was it even worth making? What are your thoughts? Let me know in the comments below!