Showing posts with label Iran. Show all posts
Showing posts with label Iran. Show all posts

Tuesday, September 15, 2026

Ambrose Evans-Pritchard Sees Serious Threats to the Global Economy

Four powerful shocks are hitting the world economy at the same time. They are escalating and feeding on each other, driving a commodity spiral that can end only in an inflationary blow-off.

The effects are ripping through the global bond markets and confronting central banks with an impossible dilemma. Yields on 10-year US Treasuries have surpassed 5pc, smashing through the Maginot defences of Scott Bessent, the US treasury secretary.

The Bloomberg commodity index has risen 48pc this year, accelerating in pace and spreading in breadth from energy to industrial metals and grains. The fever has spread to shipping and freight.

Lloyd’s List says the cost of a giant VLCC oil tanker on the Baltic Exchange has hit $1m (£740,000) a day, eight times the cost in January. “What is happening is truly unprecedented,” said Erik Broekhuizen, the head of shipping at Poten & Partners.

The futures markets are no longer pricing in a quick return to normal, as they were in those first insouciant weeks of the Iran war, when traders still believed in the all-conquering might of the US navy. Brent futures contracts are over $90 a barrel all the way out to the spring of 2027.

European gas futures are locking in prices through the winter that are three times higher than last winter. Wheat, maize and soybeans are all in “contango”: futures prices are well above today’s spot prices.

Read the rest here.

Tuesday, August 18, 2026

Who holds the cards?

If I were writing a book about the U.S. war with Iran, I know exactly what the title would be. It would be President Trump’s social media post of April 5, 2026, directed at the leaders of Iran: “Open the [expletive] Strait, you crazy bastards, or you’ll be living in Hell — JUST WATCH!”

Wars are a crucible that very often exposes changes in the physics of the world around us — who has power, who doesn’t have power and how power is being wielded. Nothing better captures the new power equation produced by this war than Trump’s unhinged and obscene rant at the Iranian leadership for not bending to his bombs.

This new physics of war is equally present in the conflicts between Ukraine and Russia, Hezbollah and Israel, Hamas and Israel and the Houthis and everyone else. My summary of this new dynamic is that the small can now act really big, really accurately and really inexpensively. And while the big can also act really small, really accurately, it is far more expensive for them to do that while bearing the burden of vast legacy arms systems.

The net advantage, for the moment, seems to be to the small. That should keep you up at night, when you think how the emerging revolution in artificial intelligence will surely supercharge this trend, enabling the small to act even bigger, mightier and less expensively.

Read the rest here.

Sunday, August 09, 2026

Iran sets out steep demands for reopening Hormuz

There are no ongoing negotiations between Tehran and Washington, Iranian Foreign Minister Abbas Araghchi said Sunday, after Tehran set out a steep series of demands for the reopening of the Strait of Hormuz.

“The intermediaries are still making efforts to find ways to resume negotiations,” Araghchi said.

He tempered optimism stirred by Iran’s separate discussions with Oman over the future management of the waterway, saying that “changes to maritime routes in the Strait of Hormuz are a technical and legal matter and do not mean that the Strait of Hormuz has been reopened.”

Araghchi’s statement came a day after top Iranian security official Mohammad Bagher Zolghadr laid out the country’s conditions for reopening the Strait of Hormuz, saying it would not do so “until America corrects its behavior.”

The statement from Iran’s Supreme National Security Council secretary, as carried by Iranian state media, stated that the U.S. must withdraw its naval blockade, pay Iran damages for the war, unfreeze Iranian assets, lift sanctions on Tehran and permanently end the conflict against Iran and its regional allies.

Read the rest here.

Iran knows that to borrow one of Mr. Trump's favorite cliches... they "hold the cards."

Tuesday, August 04, 2026

Report: US has largely exhausted its stockpile of long range missiles in Iran War

Washington — The U.S. has used nearly all of its global stockpile of long-range precision missiles during the war with Iran, two sources with direct knowledge of the matter tell CBS News.

Specifically, the U.S. has used virtually all of its Army Tactical Missile Systems, known as ATACMS, and Precision Strike Missiles, the sources said. Reuters was first to report that the U.S. had used "virtually all" of its long-range precision missiles during Operation Epic Fury. 

CBS News has previously reported that the U.S. has dwindling stockpiles of defensive interceptors and long-range missiles, which has become a pressure point within the administration, and that the U.S. cannot sustain the rate at which it expended precision munitions early in the war with Iran. 

U.S. officials said there are limited inventories of the ATACMS and Precision Strike Missiles, and that the most pressing concern involves the number of Patriot and Terminal High Altitude Area Defense (THAAD) interceptors, which have been used faster than the industry can replace them. 

Read the rest here.

Monday, June 22, 2026

Becket Adams: CNN was right about the war, and I was wrong

Conservative media often direct a lot of ire at the “mainstream press” for getting it wrong — and they are often right. But it is only fair to acknowledge that conservative media get it wrong, too.

And when it comes to President Trump’s disastrous attempt this year at playing war chief, a whole lot of conservatives got it wrong, this author included.

Following the president’s signing last week of his “Memorandum of Understanding” with Iran — an agreement good for 60 days until Washington and Tehran strike a “final deal” — there’s nothing left except to concede that the U.S. was done in by a few mines. Iran actually forced a desperate White House to the negotiating table simply by flexing what muscles it has left over the Strait of Hormuz.

The largest, most powerful, and best-funded military in the history of the world, despite inflicting massive destruction and suffering minimal casualties, was somehow defeated by a shipping channel. Our British cousins must be having flashbacks to the Suez Canal.

The most astonishing thing about the White House’s capitulation in Iran, beyond the Islamic Republic’s victory in the face of a clear power disparity, is that the White House obviously jumped into the war with no real consideration or plan for the possibility that Iran might block the Strait of Hormuz. This despite U.S. military strategists warning for decades about this exact scenario.

Read the rest here.

Thursday, June 18, 2026

The War is Over and We Lost

The preliminary deal ending President Trump’s four-month war with Iran is welcome but brings with it hard truths. Mr. Trump made a terrible mistake starting this war. He prosecuted it recklessly and in open defiance of the law. The United States is emerging weaker — militarily, diplomatically and economically — and will pay strategic costs for years to come.

The details of the deal are unclear, but the announced framework suggests that Mr. Trump has won few of the terms he insisted that he would. It is a humiliating comedown for him and the nation he leads.

Since the war began, he has said the United States would achieve “total and complete victory” and that Iran must agree to “unconditional surrender.” He suggested that regime change would occur. He said that Iran would be permitted “no enrichment” of uranium and that “the United States will, working with Iran, dig up and remove all of the deeply buried” near-bomb-grade nuclear material that it already holds.

None of this appears to be true. Iran’s hard-line government remains in place. The specifics of the nuclear agreement will apparently be negotiated over the next two months, but the terms seem likely to resemble those of a 2015 deal that President Barack Obama negotiated and that Mr. Trump canceled in 2018. He described the Obama agreement as the “worst deal ever” and said it put Iran on “a route to a nuclear weapon.” He criticized it for failing to force Iran to stop supporting terrorist groups like Hamas and Hezbollah and for loosening economic sanctions. Yet his destructive war seems likely to leave him with a similar deal.

Read the rest here.

There will be books written about this debacle, and it will be studied in universities, think tanks and military war colleges as one of the worst foreign policy blunders in the post-Vietnam War era. The incompetence of this president and his administration beggars the imagination.

Monday, April 27, 2026

The Rise of Ukraine (and Decline of the US) as the Defender of Freedom

A remarkable thing has happened on the world’s battlefields. Ukraine — a nation that was supposed to dissolve within days of a Russian invasion — has fought Russia to a stalemate, revolutionizing land warfare in the process. It has become an indispensable security partner in the Western alliance, including in the war against Iran.

Now, Volodymyr Zelensky, Ukraine’s president, is taking the next step, one that would have been unthinkable even as recently as 2024. By word and deed, he’s showing Europe and the world how the post-American free world can preserve its liberty and independence. This is what happens when, as Phillips Payson O’Brien wrote in a piece for The Atlantic, “Kyiv appears to have given up on the United States.”

If that is true — and it looks as though it is — it may be worse news for the United States than it is for Ukraine.

Events on the ground and in world capitals are moving so quickly that it’s hard to keep up. First, the strategic situation in the Ukraine war seems to have changed. Last week, Mick Ryan, a retired Australian major general and one of the most astute analysts of the war, wrote that Ukraine has largely stabilized the frontline in eastern Ukraine, deepened its coalition, isolated Russia diplomatically and developed an indigenous arms industry that makes it less dependent on external support.

It’s no longer accurate to think of Ukraine as a desperate underdog; it’s becoming an independent power. Even as it fights for its life against Russia, it’s reportedly reaching defense deals with the Gulf states and with the United States — and this time it’s Ukraine that’s providing military assistance.

In February 2025, President Trump mocked Zelensky in the Oval Office. “You’re not in a good position. You don’t have the cards right now,” Trump said. In April 2026, Ukraine has enough cards left that it’s sharing them.

This might be difficult for many readers to grasp — given our nation’s longstanding military supremacy — but the largest and most battle-hardened land force in the Western world may well be the Ukrainian Army. While the precise numbers are classified, the Atlantic Council estimated in 2025 that Ukraine had roughly a million men and women under arms, the vast majority of whom serve in the ground forces.

America’s total force is larger than Ukraine’s, but to put the size of Ukrainian land forces in perspective, the combined size of the U.S. Army and Marine Corps is around 620,000. It’s also worth noting that the U.S. forces have much less combat experience than Ukraine forces — especially when it comes to combat with a great power.

No one should minimize Ukraine’s manpower issues (more recent estimates place its total number of active troops well below the million-body peak) or the fact that it has no nuclear weapons and Russia has thousands. But its army is still vast, and its military is the only Western force that has fully adapted to modern drone warfare. Indeed, Ukraine is arguably the world’s leader in drone warfare.

Rapid change isn’t occurring just in Ukraine. Other developments across the Western alliance show that European nations are working with shocking speed to free themselves from dependence on America.

Read the rest here.

Friday, April 24, 2026

Trump's War is Dangerously Depleting US Military Weapons and Ordinance

Since the Iran war began in late February, the United States has burned through around 1,100 of its long-range stealth cruise missiles built for a war with China, close to the total number remaining in the U.S. stockpile. The military has fired off more than 1,000 Tomahawk cruise missiles, roughly 10 times the number it currently buys each year.

The Pentagon used more than 1,200 Patriot interceptor missiles in the war, at more than $4 million a pop, and more than 1,000 Precision Strike and ATACMS ground-based missiles, leaving inventories worrisomely low, according to internal Defense Department estimates and congressional officials.

The Iran war has significantly drained much of the U.S. military’s global supply of munitions, and forced the Pentagon to rush bombs, missiles and other hardware to the Middle East from commands in Asia and Europe. The drawdowns have left these regional commands less ready to confront potential adversaries like Russia and China, and it has forced the United States to find ways to scale up production to address the depletions, Trump administration and congressional officials say.

The conflict has also underscored the Pentagon’s overreliance on excessively expensive missiles and munitions, especially air-defense interceptors, as well as concerns about whether the defense industry can develop cheaper arms, especially attack drones, far more quickly.

Read the rest here.

Saturday, March 28, 2026

The Economic Implications of Trump's War


This is one of the best explanations I have seen for what is going on, and what might be coming down the road.

Friday, March 27, 2026

At CPAC a Generational Divide Over Iran

GRAPEVINE, Texas (AP) — A generational divide over the Iran war surfaced Thursday between older attendees and their political heirs at this year’s Conservative Political Action Conference, as the group’s leaders pleaded for unity in a challenging midterm election year for Republicans.

Younger conservatives spoke of disappointment and even “betrayal” over President Donald Trump’s launch of strikes against Iran, saying in interviews with The Associated Press that the president’s actions run counter to his many pledges to oppose foreign entanglements.

Meanwhile, older conservatives were looking past Trump’s campaign criticism of military action to topple foreign regimes, arguing the war in Iran is a pragmatic act forced by threats to the United States.

The bright dividing line emerged in conversations with a dozen participants on either end of the age spectrum who gathered for the annual meeting of conservatives, being held outside Dallas. That split could reflect flagging enthusiasm for Trump among some younger voters, a potentially troubling sign for Republicans heading into midterm elections and for the conservative movement as it looks to build beyond Trump’s tenure.

“We did not want to see more wars. We wanted actual America-first policies, and Trump was very explicit about that,” said Benjamin Williams, a 25-year-old marketing specialist for Young Americans for Liberty. “It does feel like a betrayal, for sure.”

Read the rest here.

A war of regression: How Trump bombed the US into a worse position with Iran


Four weeks into a war that was going to take four days, and that has so far cost the US about $30-40bn and Israel $300m a day, Washington is further away from a diplomatic agreement with Iran than it was in May 2025.

Not only has the war failed to persuade Iran to agree to dismantle its nuclear programme in the comprehensive and irreversible way the US demanded in a 15-point paper that it tabled on 23 May last year, Washington is now having to negotiate to reopen the strait of Hormuz, a strategic waterway that has been open ever since the invention of the dhow, with a short exception of a tanker war in the 1980s between Iran and Iraq.

This regression is proving to be perplexing for the American high command. Pete Hegseth, the secretary of defence, recently said that “the only thing prohibiting transit in the strait right now is Iran shooting at shipping”, but this was not quite right. Iran has not been shooting at shipping that much in recent weeks. Instead, it is the fear of Iran shooting at shipping that is scaring off insurers and tanker owners.

Still worse from the US perspective, Iran has set up a waterside stall whereby prime ministers and tanker owners can bargain with the Iranian navy over the toll they are willing to pay for their tankers to be given “free passage”. Iran plans to turn the strait into a money spinner, just as Egypt charges for access to the Suez canal. By some calculations, given the massive scale of the traffic that passes through the strait each year, Iran could raise $80bn a year. If a law currently being rushed through the Iranian parliament passes, tankers carrying oil from favoured non-hostile nations such as India, Japan, Pakistan, South Korea and China will be waved through or offered cheaper rates.

Little wonder Trump is thrashing around. The US along with Israel continues to bomb Iran, but he has now twice put back the date of threatened strikes on Iran’s civilian power stations – an action that would constitute a war crime. He continues to insist Iran has been defeated and yet Iran continues to behave as if it is not.

Read the rest here.

Thursday, March 19, 2026

Underestimating the Potential Energy Shock

It is hard to decide which is the bigger disaster: the unfolding car crash in the global gas market or the mounting danger that entire countries will run out of oil.

The benchmark TTF contract for gas in Europe was €29 (£25) per megawatt-hour (MWh) in mid-February. Bank of America says it could reach €500 this winter if the Strait of Hormuz remains closed for 10 weeks, as it may well do.

That would blow through the record high seen after Russia’s invasion of Ukraine and amount to a full-blown economic emergency for Europe, the UK, Japan, South Korea and South Asia.

The picture is dramatically worse after Israel attacked Iran’s South Pars gas field, adding upstream gas and oil infrastructure to the menu of targets on both sides of the Gulf.

Iran’s missile retaliation on Qatar’s Ras Laffan has inflicted serious damage to the giant complex, which alone produces a fifth of the world’s liquefied natural gas (LNG).

It will be months before shipments start again. Qatar Energy says 17pc of production is lost for three to five years. It will have to declare force majeure on LNG supplies to Italy, Korea, China and Belgium.

It is just as bad for oil. The paper market that we all follow does not capture the drama. Physical deliveries are under far greater stress than Brent futures, at about $113, would suggest.

Actual barrels of the Dubai basket and Oman’s Murban are fetching close to $170 a barrel as Asian refiners scramble to buy anything they can. Jet fuel deliveries have hit $210 in Rotterdam and $240 in Singapore.

Kurt Barrow, the vice-president of oil at S&P Global Energy, says it may become physically impossible to obtain supplies. “If the Strait stays closed for two months, you’ll have plants without feedstock and we’ll get real rationing. We’ll have panic buying and hoarding,” he said.

“This is the largest supply disruption ever. Net, we’re around 15 million barrels a day (b/d) short in the market. Crude gets the headline but the actual impact is further downstream in refined products, diesel, jet, fuel or naphtha. There are 68 refineries in the war zone.”

Read the rest here.

Friday, March 13, 2026

Iran: My thoughts...

Any fool with a military can unilaterally start a war. But ending one, short of total and absolute destruction of your enemy (i.e. Germany 1945) is much harder. This war is likely to last a long time because Trump has completely misunderstood who he is dealing with. Religious fanatics who are unafraid of death, and who have highly developed plans to run a decentralized war, involving low tech weapons like drones and mines. To win this war, Trump needs to break the regime's willingness to fight and humiliate them on a level that leaves no doubt who won. For Iran to win, all they need to do is endure, and continue to inflict pain, primarily economic but also some military, until the American people have had enough of a war that is already deeply unpopular. The US is further hamstrung by poor planning and a reluctance to go "all in" by invading with ground forces. Additionally there is a finite supply of ordinance and high tech munitions which cannot be replaced either quickly or cheaply and which we are burning through at an alarming rate. (A fact that both China and Russia are paying very close attention to.) As of right now, I'd be a little surprised if this war ends before the November mid-term elections because the Iranians have zero interest in ending hostilities before then.

Tuesday, March 10, 2026

The Making of a Forever War in Iran

President Donald Trump has plunged the United States into an open-ended war with Iran, lacking clearly defined and achievable objectives, a discernible endgame, or a viable exit plan. This is a war of choice—Iran posed no imminent threat to the United States, and the White House is now scrambling to devise a strategy for a war already underway and proving more difficult than anticipated.

The war will likely escalate as Iran digs in and hawkish voices push Trump toward maximalist—and largely unachievable—aims. By setting this crisis in motion, the Trump administration is repeating the same failures that have long defined US Middle East policy. Absent a course correction, the United States is on the path to another forever war.

Trump’s ostensible justifications for this war have shifted repeatedly, as have the stated objectives.

Prior to the initiation of Operation Epic Fury, the stated casus belli for military action provided by the Trump administration was fluid and contradictory. They oscillated between targeting Iran’s nuclear program (which Trump insisted he had destroyed last year during Operation Midnight Hammer), destroying its ballistic missile program, and liberating the Iranian people. Despite polling showing that the vast majority of Americans opposed and still oppose such a war, Trump proceeded undeterred.

The stated rationales have been no less fluid and contradictory since the war began. When announcing the war, Trump claimed Iran posed an “imminent threat” to the United States and openly embraced regime-change in Tehran as his objective, urging the Iranian people to “take back” their country. Since then, the Trump administration initially walked back its intentions, rhetorically distancing itself from regime-change—even after the killing of Ayatollah Ali Khamenei—but recently claimed Trump needed to be personally involved in selecting Iran’s next leader.

Read the rest here.

Sunday, March 08, 2026

Yes, it's a 'War of Choice,' and a Bad One

"The war on Iran is not a war of choice," huffs New York Post columnist Michael Goodwin, who since President Donald Trump launched massive airstrikes on the Islamic Republic last week has had it up here with the "Democrats and their media handmaidens" describing the conflict as anything other than strictly defensive (leave aside for the moment the high-profile conservative critics of the war).

Goodwin's umbrage is widespread among those supporting the war as not only justified but initiated just in the nick of time. Eschewing any defensible definition of imminent, the Harvard-educated Sen. Tom Cotton (R–Ark.) avers "the president was right to act" because "Iran has been an imminent threat to the United States for 47 years." Sen. Cynthia Lummis (R–Wyo.) echoes those thoughts, announcing, "The United States has been in a forever war with Iran since the late 1970s" and thanking Trump for "taking decisive action to defend America from the Iranian terroristic regime."

These are ridiculous, nonsensical formulations—especially the notion that Iran was mere hours or days away from turning the American homeland into a nuked-over parking lot. Even President Donald Trump declared last June that "Iran's Nuclear Facilities Have Been Obliterated—and Suggestions Otherwise are Fake News." Similarly, a Defense Intelligence Agency report from last year concluded Iran wouldn't have missiles capable of reaching America until 2035. Recall also that U.S. officials were in active negotiations with Iran and that administration officials "told congressional staff in private briefings…that U.S. intelligence did not suggest Iran was preparing to launch a preemptive strike against the U.S."

So prior to last Saturday, Iran didn't have nuclear weapons, was years away from possessing missiles that could reach the United States, and wasn't about to launch a sneak attack. Such basic facts completely undercut the whole idea that the president needed to act immediately and, not uncoincidentally, without any sort of congressional authorization.

Read the rest here.