Poor mothers, why bring them into it?

The exchange rate of the Iranian rial against the dollar plummeted to 100,000 yesterday. "The unofficial rate stood at 102,000 by midday, according to  Bonbast, one of the most reliable sites for tracking the Iranian currency." "The rial has lost half its value against the dollar in just four months, having broken through the 50,000-mark for the first time in March." "The Iranian government attempted to fix the rate at 42,000 in April and threatened to crack down on black market traders." But, this did not stop the currency from falling, as even banks refused to exchange dollars at the official rate. This is because the US pulled out of the nuclear deal in May. "The US is set to impose its full range of sanctions in two stages on August 6 and November 4, forcing many foreign firms to cut off business with Iran." When the currency falls imports become more expensive. The Central Bank of Iran put the Consumer Price Index at 10.2% in the twelve months ending July 22. However, Prof Steve Hanke of Johns Hopkins calculates that the annual rate of inflation at 151%. "Averages never indicate the facts. And what year is the base year is also an important criterion," said Prof M Gholi Yusefi at Allameh Tabataba'i University. "However, I think Hanke's statistics are more accurate, because most of the goods in Iran are imported from abroad and are therefore influenced by the exchange rate. Exchange rate affects even non-commercial goods such as taxi fares. Therefore, the exchange rate index is more accurate to assess the inflation rate." Prof M Pazouki at the same university was enraged. "No intelligent economist considers the inflation rate in Iran at 150%, as the main needs of Iranian households have not increased in recent months. So, I think this talk is more of a psychological warfare carried out by the enemies of Iran." But, Iran is also using psychology. President Hasaan Rouhani promised that Iranians will unite against aggression and "will certainly defeat America". "Don't play with the lion's tail, this will only lead to regret. The Americans must understand well that peace with Iran is the mother of all peace, and war with Iran is the mother of all wars." Supreme Leader Ali Khamenei promised to block all oil shipments through the Strait of Hormuz if Iran's exports are blocked. Saddam Hussein also promised "the mother of all battles". Unfortunately for him this mother resulted in his death. While all this is going on Israel and Saudi Arabia are quietly becoming friends and both have a hatred for Iran. Israel actually managed to steal Iran's nuclear secret from a warehouse in the outskirts of its capital Tehran. A "mother of all wars", with the US, Israel and Saudi Arabia against Iran and its proxy militia, such as Hezbollah, with possible help from Hamas and the Muslim Brotherhood, looks increasingly likely. What happens to the price of oil if that happens?