Question

On January 3, Iranian General Soleimani was killed in a US-led airstrike. Soleimani was a top Iranian official, and the event resulted in retaliation by Iran against the US’ military bases in Iraq, including the accidental shooting-down of a commercial Ukrainian Airplane. Since the attacks, the US border crossings in Canada have reportedly stopped travelers of Iranian descent from entering the United States and detained them for a number of hours, though the individuals were later let into the US (this was in the days directly after January 3).

More recently, Iran has allegedly targeted the US embassy in Baghdad. Though only minor injuries were reported, it is still evident that there is unrest in the region due to the US’ attack on January 3.

There is national and international speculation as to whether the attack on Soleimani was legal. The Trump administration has said the airstrike was to prevent “imminent attacks” against the US, though evidence has not been presented about these attacks.

Questions:

1) What effect might this attack have on businesses operating in the region?

2) If you were the manager of a business working in Iran that had both American and Iranian employees, what would be your first action after this attack?

3) Iran is the world’s fourth largest oil producer. Would  this event impact oil and gas prices? Why?

Answer 1

ANSWER:After revocation of Joint Comprehensive Plan of Action(JCPOA) by trump administration with Iran and since then tension between both the countries were rising and most importance incident happened with the attack on Iranian General After that tension suddenly escalated in the region,and series of after effects seen as mentioned above.

Middle east is the most turmoil prone and unstable region with ample presence of one of the most important Natural resources that is OIL,NATURAL GAS,PETROLEUM PRODUCTS.Hence this is also one of the most important region with effects every country and obtained important place in countries foreign policy.

So how these series of incidents are going to effect region in particular and whole world in general.Let us analyse it.

Answer 1.This attack or all these incidences will affect or say will disturb the business environment of the region.all the businesses(no matter of which sector) that are operating in the region will have to be effect negatively.

As we know businesses can never flourish in unstable situations and according to IMF's report region is going to witness slowdown in growth, will see high unemployment.Tourism sector will also bear negative consequences of it.Businesses working under oil and gas sector will be effected negatively.

Iran 's economy is already in crunch due to sanctions imposed by US on it but other sectors that are in humanitarian areas like education,health sector will also try to leave.

ANSWER 2.If I will be the manager of business working in Iran that had both American and Iranian employees, then after this attack I will take such actions which will ensure well being of my employees because according to a businessman/Businesswomen I must have to adhere with my business ETHICS.

I will ensure this rivalry do not get spread in my organisation and nobody will have to suffer just because a fact that a particular employee belongs to a particular country,creed,cast and race.

Also according to United Nations conventions, ILO,s rule businesses and employees must not be targeted in wars.

ANSWER 3: Iran is the world's 4th largest oil producer, this event in fact all the negative developments that are going on in this region are going to effect Iranian economy in negative way. After this attack with in few hours Oil and gas prices witnessed sudden upsurge with $3-$5 per barrel.But due unstable business environment and US's sanction on Iran,it will have to witness contraction.

Iran's economy largely dependent on Oil and Gas export to various regions, though the prices will get rise but due to factors mentioned above it'll have to bear loss.According to one of IMF's report Iran will face growth contraction of about 9 to 9.5 percent.