by EliteKiller » Sat Jun 22, 2019 12:06 am
If you ignore who the Potus is and look at what is actually happening ...
The US is squeezing the life out of Iran with sanctions against not only Iran but any country or company that deals with Iran ... for a country where >80% of it's exports come from oil and gas, the slow squeeze on these commodities is really hurting, oil exports are now down over 50%, but why not 100%? ... well if the US had cut off all the Iran exports in one go the oil price would have spiked, to avoid this the squeeze has being slowly applied, thus allowing other countries to take up the slack ... this has worked and the oil price has remained fairly stable.
Now that squeeze is back on Iran's oil and gas exports will be 75% down from two years ago, that means they are going bankrupt, pretty much all cash reserves (not frozen in overseas accounts) have gone ... the economy is shrinking 2% a quarter, inflation has risen to 30% and is still rising ... and what's really worrying for the Iranian leadership is that the population are getting restless ... a currency that's worth just 10% of it's 10 year value, failing infrastructure, big price increases ... for an Iranian what's to like? the chanting crowds and USA flag burning is all well and good, but it doesn't put food on the table ...
So why does this matter? Well it matters because what we now see playing out in the Middle East all comes back to maintaining control for Hassan Rouhani, he needs the US stranglehold to break or he knows Ali Khamenei or the people will replace him ... his only real play is to goad the US into some kind of aggressive action that will necessitate Russia and or China coming to his aid ... in reality he must get the oil and gas flowing again
How does he do that? His options are limited, he can't win a war with the US but then neither can the US win a war with Iran both sides know that Middle East wars are never ending ... so he has to try and goad the US into throwing a few punches, hence the drone kill, and it very nearly worked ... but it didn't ... the US saw the trap and avoided it, just!
So what next, well his only other option is to disrupt the oil flow through the straits of Hormuz, this will drive up the price of oil and with increased demand Iran will be able to sell more oil ... can he do this? He can try, mining tankers is very hard to prevent, the US has a substantial force in the gulf and they will know this action is coming ... still tankers are easy targets.
So what can the US do, well firstly they don't need to do all that much, the sanctions are clearly working just tightening that squeeze will break Iran, so bearing in mind that Iran's only option now appears to be increased military action of some sort, then what the US needs to do is get it's allies and the UN lined up before it takes any military action ...
So if you look at the big picture the US were right to pull the plug on retaliation, the US demonstrated (planes in the air targets locked) that it could take down the Iranian air defence, posturing if you will, but decided that dialogue was the best course ... a big tick with other world powers for the show of restraint.
Of course POTUS is Trump, so the media will spin his actions all ways to Sunday ... that's just where we are ... but if you can get past the fact that a slimy, misogynistic, racist is in the chair ... what the US did was near perfect both militarily and politically ... losing $180m drone but gaining the moral high-ground is a big win.
The big question is will Russia and China fall in behind the US by doing nothing, or will the bail out Iran economically .... interesting times ahead can the Orange one hold it all together?