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🇺🇸🇮🇷 Economic "D-Day" could backfire on Washington The Iran sanctions campaign faces a basic problem: China can circumvent it, but forcing Beijing to fully comply would mean inflicting enormous damage on the U.S. economy too. Sanctions take months to implement, enforce and evade. Washington is therefore left with an...

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🇺🇸🇮🇷 Trump just declared economic war on anyone keeping Iran alive. There's just one HUGE problem: China. Trump's “Economic D-Day” is an attempt to financially isolate Iran on a scale Washington says has never been attempted before. And Treasury Sec. Bessent made the objective brutally clear: They want to collapse the Iranian regime. That means targeting not just Iran, but the countries, banks and businesses that continue trading with it. Which brings Washington directly into collision with Beijing. China buys the overwhelming majority of Iran's shipped oil. So if Trump genuinely intends to economically strangle Tehran, eventually he has to answer the question everyone is asking: What happens when China refuses to stop? He faces two choices: Don't enforce the sanctions aggressively against China, and Tehran retains the economic lifeline Washington is trying to sever. Enforce them, and what began as an economic war against Iran starts becoming an economic confrontation with the world's second-largest economy. And China isn't Iran. Beijing has economic weapons of its own: Rare earths, manufacturing, critical supply chains, and, crucially, an alternative financial architecture it's spent years developing precisely because it never wanted Washington to possess a permanent veto over Chinese commerce. That's the part of this story that could become far more consequential than whatever happens in Hormuz. America's greatest economic weapon isn't an aircraft carrier, it's the dollar. Access to the dollar system gives Washington an extraordinary ability to punish governments, banks and companies almost anywhere on Earth. But that power only remains overwhelming for as long as the rest of the world has no viable alternative. Every time Washington weaponises it, it creates another incentive to build one. And Trump is now threatening to demonstrate that vulnerability on an enormous scale. China doesn't need to overthrow the dollar tomorrow; it just needs enough infrastructure to continue trading when Washington says: Stop, or else. And once that infrastructure exists, other countries gain access to the same insurance policy. Trump's war on Iran exposed the limits of American military power. His economic war may be about to expose the limits of America's financial power too. Brandon Weichert

Mario Nawfal

534,769 Aufrufe • vor 4 Tagen

🇺🇸🇮🇷 Trump's economic war against Iran has officially begun. He's launched what Treasury Sec. Bessent describes as an unprecedented campaign to sever every financial lifeline keeping Tehran alive. Washington says it will go after the banks, oil traders, shipping companies, crypto networks and foreign entities helping Iran circumvent American pressure. But one question exposes just how enormous this could become: What about China? Iran can only be economically isolated if the countries still doing business with it cooperate. If they don't, America's secondary sanctions eventually have to reach them too. Enforce Operation Economic Outcast too selectively, and Iran keeps finding routes around it. Enforce it ruthlessly enough to genuinely isolate Tehran and Washington risks a much larger confrontation with the countries, banks and businesses refusing to comply. For all the extraordinary rhetoric, though, this also represents a significant movement down the escalation ladder. Weeks ago, Trump was threatening Iran with annihilation, and people were discussing ground troops and even nuclear escalation. Now Washington's principal weapon is the Treasury; the war has moved from bombs to banks. That's unquestionably preferable to Americans and Iranians killing each other, but it also suggests Washington is searching for another way to extract concessions it couldn't force militarily. Iran's negotiating position remains extremely ambitious: control over Hormuz, substantial shipping fees, reparations and the removal of American bases from the region. The precise details remain uncertain, but Washington clearly isn't prepared to accept the position as it currently understands it. So Trump needs leverage, and Operation Economic Outcast is designed to create it. The problem is that sanctions take time. Banks and companies adapt, trade gets rerouted, and new payment mechanisms emerge. Meanwhile, Washington wants Hormuz normalised, and energy markets stabilised quickly. And Iran is already signalling that it won't simply absorb unlimited pressure without responding. That creates the risk of a new escalation cycle: America squeezes Iran, they refuse to concede, Washington targets the countries keeping Tehran afloat, and Iran increases the cost for countries helping Washington. The bombs may have stopped falling, but Trump has replaced the military war with an economic gamble that could reach far beyond Iran. Brandon Weichert

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🇺🇸🇮🇷 Washington may call it economic pressure. Tehran may call it war. Former CIA analyst Larry Johnson says Iran could respond to a U.S. economic campaign the same way it would respond to a military attack, particularly if countries help enforce it. The logic is pretty straightforward: if allowing your airbases to be used against Iran makes you a target, why should allowing your banks and financial system to be used against Iran be any different? Johnson's answer is that it shouldn't. And that puts the UAE in an uncomfortable position. But Gulf states have already realised Washington is not the security guarantee it once appeared to be and are quietly repairing relations with Tehran. The fact that the UAE has avoided another round of strikes is hardly irrelevant. Then there is the bigger problem with the sanctions strategy. China is refusing to play along. Pakistan is hardly going to abandon Iranian energy to keep Washington happy. Iranian oil is increasingly being settled in yuan, outside the U.S. financial system. The irony is becoming difficult to miss. The harder Washington squeezes Iran, the more Tehran's biggest partners have an incentive to build ways around Washington. 10 years ago, Russia and China helped enforce the sanctions regime. Today, they are helping Iran survive it. Meanwhile the rial has collapsed, Iran is restricting shipping through the Strait, and Tehran has reportedly been discussed for a regional defence pact involving Pakistan, Saudi Arabia and Turkey. Washington is promising the most devastating sanctions yet. Johnson's response? "I'll hold my breath." SonofNewAmericanRevolution

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🇺🇸🇮🇷 Pepe Escobar: Washington is trying to use the Venezuela playbook on Iran, and he thinks it badly misunderstands who it is dealing with. Escobar says the Trump administration recently revived a back channel to the IRGC through Iraqi Kurdistan’s leader Nechirvan Barzani. The channel was originally set up for diplomacy. According to Escobar, it was later used to offer billions of dollars to senior IRGC figures in exchange for helping weaken Iran’s leadership from within. The offer was rejected. Escobar says Ahmad Vahidi passed it up and the information moved up Iran’s chain of command. His point is that Washington was essentially trying to buy a military coup. The problem: senior IRGC figures spent decades fighting the Iran-Iraq War and see themselves as defenders of Iran against foreign intervention. Taking American money to undermine the state would mean treason, not a payday. Escobar sees the same misunderstanding in Washington’s wider strategy. Iran’s message that the U.S. should leave the region and accept a “new regional order” is, in his view, a statement that the old balance of power is changing. Iran sits at the center of a growing network linking Russia, China, Central Asia and Pakistan. The North-South Transport Corridor, China-Pakistan Economic Corridor and expanding Iran-China trade routes are creating alternatives to U.S.-controlled trade and finance. That is why Escobar expects the sanctions campaign to hit more than Iran. Secondary sanctions put China, Russia and other countries trading with Tehran in the same fight. China, he argues, has little reason to comply. Its 2021 anti-foreign-sanctions law explicitly targets the extraterritorial use of foreign sanctions. So Escobar’s bigger point is simple: Washington is trying to isolate Iran, but the pressure may be pushing Iran, China, Russia and the wider Global South into closer cooperation. The fight over Iran is increasingly a fight over who gets to shape the system around it. Pepe Escobar

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