Iran — the impact of a nuclear reactor accident on the stock exchange and cryptocurrencies
On July 2nd, 2020 a fire broke out in a facility in Natanz. In the long run, the accident may slow down the construction of technologically advanced centrifuges in the main nuclear power plant in Iran.
According to information obtained from the Iranian Legal Newspaper, the destroyed building in Natanz will be replaced with a different facility, equipped with enhanced and safer technologies. According to official sources, the cause of the fire is known, but will not be disclosed to the public at this time. The Kuwaiti journal “Al-Dżarida” wrote that Israeli forces may have been involved in the accident. To emphasize the importance of the issue it is important to note that the facility in Natanz is located in central Iran and is a vital element of the Iranian nuclear program.
The malfunction of a power plant in Iran and the world economy — how are they connected?
The Iranian economy is currently among the most dynamic economies in the Middle East. Iran is one of the few muslim countries which develop other sectors of their economies, rather than just the oil industry. Unfortunately, the problems of this country may impact other nations, as it is one of the main exporters of oil.
The history of world economies and conflicts shows that the increase of oil prices took place either when issues with its production arose, or when a given country faced internal economic problems. In practice, this means that destroying the foundations of one of the main nuclear projects in Iran may directly impact the prices of oil exported to other countries.
The trade war between USA and China, the threat of armed conflict in the Middle East, as well as the Coronavirus outbreak may have lasting consequences for the economic sectors of many countries. Many people may consider Bitcoin and cryptocurrencies to currently be unrelated to the macroeconomical and microeconomical situation in certain countries. Due to this, it is worth considering the possibility of investing in cryptocurrencies via the proven KingsOfInvestment platform!