Call Me Stormy

Iran Teetering On The Brink

Iran is facing an increasingly severe economic and military squeeze as sanctions, financial isolation, trade restrictions, and attacks on its military infrastructure cut the country off from the global economy. The strategy resembles an economic “Anaconda Plan,” gradually depriving Iran of oil revenue, foreign currency, industrial parts, weapons, fuel, and access to international markets while negotiations and military action continue.

Iran is betting that it can withstand the pressure long enough for the approaching U.S. midterm elections to constrain the Trump administration, but the country is losing hundreds of millions of dollars in economic output and revenue each day while its military capabilities continue to deteriorate.

The Strait of Hormuz may also become less valuable as Gulf states expand pipelines and alternative export routes through the Gulf of Oman, Red Sea, and potentially the Mediterranean. As Iran’s economy weakens, its military shrinks, and alternative oil routes reduce its leverage over global shipping, time may increasingly favor the United States rather than Tehran. Here’s more from Victor Davis Hanson.