US sanctions on Iran will destroy world prosperity

World
Europe

00:59

The White House has reimposed economic sanctions against Iran. The Americans have also threatened to cut business ties with any country trading with Iran. China Radio International (CRI) commented that the country’s policy is like a black hole that will pull in and destroy economic growth.

The US is aiming to end Iran's oil exports which will lead to an increase in global oil prices. Bank of America Merrill Lynch Group predicted that global oil prices will soar to 120 US dollars a barrel.

However, the effect of the American sanctions would not be limited to Iran's domestic economy. Two major French car groups, PSA Peugeot Citroen and Renault, had to suspend their business in Iran and analysis said the reduced sale volumes have been reflected in the global market and have directly affected the real economy.

VCG Photo

The US economy will backfire inevitably. BMW, as the leading US car exporter, was affected due to increased costs. The company had to increase prices in a way that is likely to reduce sales. Analysis said “stagflation” will arise from the global trade tension and the ensuing stagnation and inflation will lead the global economy into recession.

The US is home to the world's largest economy, and it considers itself the world's only superpower, but the White House has injected a tremendous amount of instability into the global economy. Great power comes with great responsibility, and the world expects America to be a positive force in the world, and not a black hole that destroys prosperity.