The president of Yardeni Research warns that geopolitical tensions could develop into a shock that hurts everyday Americans.
In a new interview with Jimmy Connor, Ed Yardeni says the war in the Middle East is not only choking oil supply, but also materials used in fertilizer production.
According to Yardeni, America could experience “food shock” as farmers struggle to get their hands on the necessary materials during planting season.
“The problem is, the longer this lasts, the more it’s not only going to impact oil prices, but also food prices, because a lot of the materials that are necessary for producing fertilizer have been blocked from getting through the [Strait of Hormuz]. And fertilizer stock prices have already soared on expectations that that’ll be the case. And this is the worst possible time to have a problem with the supply of fertilizer, because this is when farmers plant. So we could have this oil price shock go into a food shock. Again, much will depend on how quickly this thing ends. I think it’s going to be tougher than a lot of people thought, including the administration.”
Yardeni believes that Iran has no intention to surrender because its objective is to instigate chaos and force governments around the world to plead for a ceasefire.
“Iran is a country, at least the government and its military, are all terrorists, professional terrorists, and they’ll keep things in chaos. I think Iran’s strategy is chaos, not only to block oil coming out of the Persian Gulf and have an impact on the neighborhood, but also, obviously, that would have a geopolitical impact. I think they want to create as much pain as they possibly can around the world and hope that the world will come back and try to work out a ceasefire by guaranteeing that the regime can live on.”
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