August 18 Oil Spike Will Hurt Markets, Says “Rich Dad, Poor Dad” Author Robert Kiyosaki

• Robert Kiyosaki, author of “Rich Dad, Poor Dad,” warned that a collapse of the US-Iran negotiations on August 18 will lead to a sharp spike in oil prices, which will hurt markets.
• That’s after markets have already priced a permanent peace deal between the parties.

For the White House, the war with Iran is over after it agreed to sign a deal with the United States in Switzerland. Robert Kiyosaki, an American entrepreneur and author of the popular “Rich Dad, Poor Dad” book, believes the calm after the storm will help markets recover. However, he expressed concerns over the days leading up to August 18.

State of the US and Iran Deal

According to the unofficial copy of the Memorandum of Understanding (MoU) obtained by CNN, the US and Iran have laid out their terms to “end the war on all fronts.” It includes the aggression in Lebanon.

Additionally, the deal reestablishes the “pre-war volume of traffic” on the Iranian side of the Strait of Hormuz. It also details Iran’s $300 billion rehabilitation plan financed by the US, a status quo on its nuclear program, release of its frozen assets, and lifting of its US sanctions, among others.

ADVERTISEMENTThe MoU will comprise the initial agreement, subject to further negotiations until the final agreement, which the parties expect to accomplish in 60 days, unless they mutually extend the schedule.

The Looming August 18 Crisis, Per Robert Kiyosaki

Kiyosaki stated that the 60-day deadline for the final agreement ends on August 18. Moreover, he does not consider the terms of the MoU as a definitive deal between the US and Iran.

The primary point of contention between the parties is their position on Iran’s nuclear stockpile. Washington wants it destroyed while Tehran maintains its stance that there’s nothing wrong with further enriching it.

ADVERTISEMENTThe American entrepreneur noted that Iran owns 440.9 kilograms of uranium enriched to 60% purity. The figures are significantly above the quality required for industrial use and closer to the 90% weapons grade purity. The factor will determine the outcome of the two-month moratorium.

Meanwhile, Kiyosaki highlighted the fragmentation between Iran’s political leadership and the Islamic Revolutionary Guard Corps (IRGC), the country’s parallel military arm. The latter’s possible non-conformity with the terms, as shown by its lack of an official statement on the US-Iran MoU, could spell a problem amid the latest developments. What’s more, both Hezbollah and Israel’s leaderships have refused to back down from their positions.

Kiyosaki warned that the 60-day window may not be enough to solve the issues he enumerated. The problem here, though, is that markets have already priced a permanent peace between the US and Iran. Hence, if negotiations collapse in August, oil will spike hard because markets have already priced out the risk premium.

An Unsettling Pause in the US-Iran Situation

Furthermore, the renowned financial author reminded the public that, time and again, history has proven that unresolved wars don’t end. Instead, they only pause.

With that, much like everyone else, Kiyosaki hopes for a peaceful resolution to the temporarily suspended tension in the Middle East. However, the cautious investor in him dictates that he should watch out for any signs of progress during the 60-day pause.

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