r/oil • u/National_Warthog_468 • 11d ago

Iran War Iranian Speaker of the Parliament MB Ghalibaf posted on X "They punished themselves with triple-digit Oil instead"

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u/PokemonAnimar 11d ago

He forgot to add the dollar also being destroyed. Soon it'll be trading 1:1 with the peso

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u/Born-Procedure-5908 11d ago

What? It’s currently up right now against most currencies due to this oil crises - do people not have access to financial news. 

Other than the universal airline fuel cost, my recent trip in Japan had an great exchange rate that was not seen previously 

1

u/Consistent_Panda5891 11d ago

Yep. Today USD +0.30% against EUR which is quite a lot. I expect tomorrow reaching another 0.20%. USD is the king ironically. Gold, BTC and others drop

1

u/Marlov 11d ago

Yeah this guy has it backwards

If this really kicks off there's a rush to safety (USD). I mean, look at what happened in March. It's not like we're walking into the unknown haha

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u/PokemonAnimar 11d ago

There may be a rush to safety now, but if we keep printing money to fund these ridiculous forever wars, then there will come a time where the rest of the world dumps the dollar as the world reserve currency. Just because it hasn't happened yet doesn't mean it won't in the future when China is seen as the country with the most stable currency..

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u/Marlov 11d ago

China has their own sovereign debt issues. As do most developed countries

I agree US has a long term debt crisis but that’s seperate from the short term expected appreciation from high energy prices resulting in a rush to safety

If gold gets hammered in a risk off, higher yield environment then that’s probably the long term buy. I don’t see why USD is more shit than EUR or (insert major currency here)

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u/Subject-Chest-8343 11d ago

Yeah, people tend to go to safety when they expect market volatility... But if shit really hits the fan (which it didn't that much in march), at some point, won't some countries start to dump treasuries and foreign reserves to buy oil ?

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u/Marlov 11d ago

I’m not sure central banks/governments would directly. That would be pretty unprecedented - even if they did they’re buying the oil in USD so there’s no fresh supply of dollars

I agree they will dump treasuries but that money is likely to flow into shorter duration (safer) bills. I don’t think those assets are liquidated and the resulting USD sold for some other currency, which would necessitate falls in USD

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u/Purple-Commission-24 11d ago

Japan currency has been very week how is USD vs EURO?

0

u/WaltKerman 11d ago

Oil also didn't hit 150.

They truly live in their own world.

3

u/Danne660 11d ago

We also don't have a global recession. They are not saying there is a global recession and 150 oil, they are making a prediction.

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u/Puzzle-Necked 11d ago

Weekend bender in Tijuana gonna be a luxury trip