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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTrump and Netanyahu miscalculated: why this war is spiralling out of control
The Middle East war is not just a military conflict it is the biggest economic disaster most of us will ever see. Two weeks in, the closure of the Straits of Hormuz has already triggered a global economic crisis that will hit every country on earth.
Twenty per cent of the world's oil flows through the Straits of Hormuz. So does one-third of all raw materials for fertiliser production urea, sulfuric acid, and phosphates. With that trade route now shut, oil prices are heading towards $150 a barrel or more, and the fertiliser needed for April planting simply cannot get through. The result? Potential crop failure and famine by autumn.
This is the economic impact of the Iran war that nobody in Washington or Tel Aviv anticipated. Trump and Netanyahu assumed they could impose regime change from the air but Iran fought back with the one weapon that matters: control of the world's most critical trade chokepoint.
The consequences are already cascading. Dubai airport has closed. Insurance markets for shipping and aviation have frozen. Gulf states like Kuwait and Iraq face imminent food and water shortages. Global inflation is accelerating. Industrial supply chains including for AI chips are breaking down. Balance of trade is collapsing for oil-dependent economies worldwide.
And Iran has named its price: the removal of all US air bases in the Gulf and $500 billion in compensation. Most countries are refusing to join the US, telling Washington to clean up its own mess.
There is no good outcome here now. Even if Trump and Netanyahu were removed tomorrow, the damage is done. This is what happens when two men start an illegal war to avoid going to prison.
In this video, we cover:
Why the Straits of Hormuz closure is an unprecedented global economic crisis
How oil prices could exceed $150 a barrel and what that means for every economy
The fertiliser crisis that could cause worldwide famine by autumn
Why Iran's strategy has outmanoeuvred the US and Israel
The cascading collapse of trade, insurance, and industrial supply chains
Iran's demands and why no country wants to help America
00:00 Where the war stands and why all sides are losing
01:00 Failed strategy: regime change and Irans resistance
02:00 The Strait of Hormuz and global economic leverage
03:00 Oil shock, shipping shutdowns and rising prices
04:00 The fertiliser crisis and risk of global food shortages
05:00 Immediate humanitarian risks in the Gulf
06:00 Global consequences: inflation, trade and industry collapse
07:00 Uncertainty, political fallout and what comes next
07:50 Conclusion: a crisis with no easy resolution
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Trump and Netanyahu miscalculated: why this war is spiralling out of control (Original Post)
bucolic_frolic
4 hrs ago
OP
Trump didn't miscalculate. Trump did exactly what Netanyahu and Putin told him to do.
Ray Bruns
2 hrs ago
#3
UpInArms
(54,887 posts)1. TFG definitely screwed the pooch this time
And Iran has named its price: the removal of all US air bases in the Gulf and $500 billion in compensation. Most countries are refusing to join the US, telling Washington to clean up its own mess.
OC375
(857 posts)2. Efficient way to put a dent in globalism
This one will leave a mark.
Ray Bruns
(6,289 posts)3. Trump didn't miscalculate. Trump did exactly what Netanyahu and Putin told him to do.
SheltieLover
(79,967 posts)4. Absofuckingloutely! His mission is to destroy the USA!
GiqueCee
(4,072 posts)5. A flawless summation...
... of the dire circumstances endangering the entire world that are the result of ill-informed decisions made by narrow-minded, self-serving psychopaths.
Norrrm
(4,886 posts)6. Trump calculated? --- Only to avoid the Epstein files.