Economy

Middle East Crisis Economic Impact
Oil prices plunge 9 percent after Iran's attack

Oil prices fell further after news that Iran had launched a limited and well-advised attack on a US military base in Qatar. CNBC reports that the market was fearing a larger attack.

A barrel of North Sea oil was around $70 at 11 p.m. after a loss of over 9 percent for the day. US WTI oil also fell just over 9 percent to around $67 a barrel.

Trump: Keep oil prices down – otherwise you're helping the enemy

Donald Trump demands that "everyone" keep oil prices down. The president writes this in a post on Truth Social.

"I see you. You're playing right into the hands of the enemy," the post continues.

CNBC writes that the post comes after Trump ordered bombings of Iran's nuclear facilities this weekend - something that has increased concerns that Iran will target energy supplies in the Middle East.

In a separate post, he urges the US Department of Energy to immediately start drilling for oil and gas.

Experts reassure: Oil price of $120 is required for collapse

Despite the unrest in the Middle East, US stock markets are showing strength and several Wall Street experts see no reason to panic.

“Historically, stock market declines driven by geopolitics tend to be short-lived and moderate,” JPMorgan strategists led by Michael Wilson wrote in an analysis on Monday, according to Bloomberg.

His team believes that oil prices would have to rush to around $120 per barrel for the stock market to collapse.

Economics professor Jeremy Siegel agrees.

“I wouldn’t be at all surprised if within a couple of weeks – assuming Iran doesn’t take any major measures – we see new record highs in the S&P500,” he tells CNBC.

At the same time, Panmure Liberum strategists warn that the stock market could fall 10-20 percent if Iran closes the Strait of Hormuz. Then a stagflation shock similar to the one in 2022 is expected, according to a market letter. 

Norwegian growth
Stoltenberg's move against youth unemployment – ​​tax lottery

Too few young people in Norway are working. In order to boost employment, Norwegian Finance Minister Jens Stoltenberg proposed in May to introduce a tax lottery, writes Svenska Dagbladet.

The proposal is that 100,000 Norwegians between the ages of 20 and 35 will be randomly selected to receive a tax cut for up to five years. Those who are not selected will have to pay according to the regular tax table.

According to Stoltenberg, the aim is to investigate whether tax cuts lead to more young people entering the workforce and how they affect the willingness to work. According to researchers, the effects of the proposal are considered to be highly questionable in advance.

In an interview with VG, Venstre party leader Guri Melby calls the proposal a "political PR trick", while Progress Party leader Sylvi Listhaug demands immediate tax cuts for everyone.