Middle East is on fire! The impact of the US-Iran failure to peace that you must know

Illustration of the impact of Iran's failure to achieve peace (antaranews)

YOGYAKARTA - The world's hope for peace in the Middle East suddenly disappeared after a long negotiation in Islamabad ended in a stalemate. This uncertainty triggered great concern about the impact of the US-Iran failure to achieve peace, which is predicted to shake global security and economic stability to an extreme in the near future.

Reported by Business Insider, Vice President JD Vance announced the failure of the deal after the delegations of the two countries did not find a common ground during 21 hours of talks.

For this reason, the world must be prepared for serious consequences, given that President Donald Trump immediately responded with a policy of a total blockade in the Strait of Hormuz.

US-Iran Impact Fails to Peace

The following are some points related to the impact of conflict between the US and Iran that could occur due to the failure of peace:

Escalation of Military Conflicts in the Middle East Region

The United States' decision to deploy the Navy to blockade the Strait of Hormuz marks a new phase of highly risky military tensions. This is not just a diplomatic threat, but a real action that could trigger a physical clash between the two countries' fleets in the waters.

Many analysts assess that this situation is a "lose-lose scenario" for the entire world. If the escalation continues to increase, it is not impossible that we will see the deployment of ground troops in the coming weeks which will further complicate the geopolitical atmosphere.

World Oil and Energy Price Shock

The Strait of Hormuz is the world's energy lifeline, carrying around 20 percent of global liquid oil and natural gas supplies.

Well, this blockade automatically cuts off the main distribution line, which directly results in a spike in the price of aircraft fuel and gasoline globally.

Read also: US-Iran Negotiations Stall, Fuel Prices Hold, Indonesia's Burden Not Gone

Patrick De Haan of GasBuddy warned that fuel prices would not improve as long as these lines were under military control and blockade. The spike in oil prices was even predicted to reach more than 7 percent shortly after the announcement of the blockade was made public.

Impact on the Rupiah Exchange Rate and Domestic Economy

For those of you who are involved in the investment world, this peaceful failure is a dangerous signal that could trigger a "crash" in the stock market.

Former JPMorgan market strategist Marko Kolanovic said that markets, which had previously strengthened due to false expectations of peace, would now be sharply corrected.

Risk-off sentiment will dominate, where investors tend to withdraw their capital from emerging markets to seek safer assets. This will certainly put great pressure on the exchange rate of the rupiah and the stability of Indonesia's domestic economy in the midst of a global supply storm.

The Future of Nuclear Diplomacy is in Danger

The failure of these negotiations is believed to have its roots in Iran's nuclear ambitions, which have not reached an agreement with Western demands.

Then, without a structural ceasefire framework, the hope of seeing a stable Middle East is becoming increasingly slim for all of us.

This tension shows that diplomacy is on the brink, and the risk of an open conflict is now more real than before.

The world can only wait now whether this is the beginning of the collapse of the global security system or just a pause before new negotiations.

Aware of the magnitude of the impact of the US-Iran failure to achieve peace on daily life, you certainly need to continue to monitor foreign economic and political movements. Don't let this rapidly changing global policy have a negative impact on the financial and business planning you are currently running.

Get in-depth information and other sharp analysis regarding this Middle East crisis only at the trusted source. Immediately visit the VOI main page to get the most accurate foreign news updates and economic developments every minute.