Oil Gains After US, UK Strikes Against Houthis

The United States and the United Kingdom announced joint air strikes on Houthi targets in the Red Sea yesterday. Escalation with the Houthi’s, an Iranian proxy, had an immediate reaction on global oil prices.

Broadly speaking, there are three ways that recessions have occurred in the United States in the 20th and 21st centuries:

1. Federal Reserve raising rates - often in response to rising inflation and price instability.

2. Aggregate demand collapses - often due to a bubble bursting - S&L crisis, DotCom collapse, 2008 financial crisis.