Iran Redux: It Really IS the Economy, Stupid

AP Photo/Vahid Salemi

Democrats, foreign policy "experts," Eurowienies, and the Iranians have a lot in common. Not the least of which is that they are all desperate for Trump and Bibi Netanyahu to lose the Iran War to the Islamists, and a common fantasy that Iran really can and is winning the conflict. 

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From Day 1, all these voices have spoken in unison, not only decrying Operations Epic Fury and Roaring Lion, but crowing about how the Iranians are winning so hard that losing everything that matters to the functioning of their government and society is a mere inconvenience. 

🚨 40% OF IRAN'S BUDGET IS ON THE BRINK OF DESTRUCTION

President Trump's blockade on their oil is resulting in MASS PANIC because the IRGC and military may soon go UNFUNDED.

"Iran, on average, exports around 1.5 million barrels a day from the Strait of Hormuz. That's about 40 percent of Iran's government budget."

"One-third of that oil that goes out of the Strait of Hormuz directly funds the Islamic Revolutionary Guard Corps, the Iran Armed Forces."

"They receive oil to sell, and then they use that money to fund their operations."

"At the same time, you have this issue of this oil export that needs to get out. Tankers need to be emptied out so they can come back and get more oil loaded."

"Iran has about 13 to 14 days of storage, onshore storage. If these tankers are not leaving to come back empty, and if they run out of storage in 13, 14 days, they're going to have to drop their oil extraction."

"That's going to cause permanent problems to their extraction level."

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It really has been remarkable to watch, if you can remain dispassionate enough to view it objectively. If ever there was proof that people who believe that The Narrative™ creates reality run our major institutions, here it is. Our Best and Brightest all chanted in unison with the Iranians an incantation that was supposed to conjure up an Iranian victory, and even the Iranians thought the magic would work.  

But "magic" only works on people who believe in it. Smart people look behind the curtain to discover that it is all misdirection and a con job. Voodoo curses may injure a person who is terrified of them, but are laughable to people who don't

Iranian leaders have portrayed the current cease-fire as a victory against an overwhelming U.S. and Israeli onslaught. But they now face a towering postwar reconstruction challenge that is putting pressure on them to negotiate for sanctions relief.

The U.S. and Israel hit at least 17,000 targets over five weeks of war, including factories; rail, road and port infrastructure; government buildings; and military facilities. Iranian state media put the cost to rebuild at $270 billion, though analysts said it was too early for an estimate as the impact of the damage filters through the economy.

Rebuilding will be complicated by the interlocking nature of the damage done by attacks aimed at dragging out the country’s road to recovery. The air campaign not only hit infrastructure but the facilities producing material such as steel that is needed to repair it and operations such as petrochemicals that bring in the foreign currency to pay for the work.

The physical damage adds to an economic crisis that was already so severe it sparked mass protests that shook the country around the new year. While Iran’s control of the Strait of Hormuz and ability to hit targets across the Gulf have given it leverage in talks with the U.S., the scale of the necessary rebuilding limits its room to maneuver.

“Iran insiders are rumbling about the looming economic catastrophe if Washington does not grant sanctions relief that would unlock prospects for economic recovery,” said Burcu Ozcelik, senior research fellow with the London-based Royal United Services Institute think tank. “Without the prospect of economic recovery, regime survival beyond the short term will face sustained structural and popular pressure.”

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Our foreign policy geniuses shared Iran's belief that its capture of the Gulf would be an economic boon. Iran would control its own oil exports, and would simultaneously reap billions of dollars in tolls. 

Who cares about the US Navy? What can Trump do about it? His European allies would force him to give up, and his Arab allies would buckle and pay the Mullahgeld. Read Ed's piece from earlier today to learn what the US Navy can and is doing. 

Senior Iranian officials have grown frustrated with a plan to generate revenue from shipping in the Strait of Hormuz, with little money collected despite expectations of significant income, sources familiar with the matter told Iran International.

Iran moved early in the war to control traffic through the strait and charge tankers about $2 million for transit permits, setting up a committee led by Mohammad-Bagher Zolghadr, secretary of the Supreme National Security Council.

But the effort has produced limited results, with only about 60 permits issued, payment requests sent for just eight shipments and no funds collected so far, the sources said, citing weak management of the process.

The outcome has triggered concern at high levels of government and within the office of Iran’s supreme leader, they added.

Discussions have taken place about removing Zolghadr from the role and shifting oversight of the file to President Masoud Pezeshkian, according to the sources.

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It was all wishcasting. Sure, the Eurowienies tried to convince Trump to give in to the Iranians, even demanding that Iran retain control over the Strait of Hormuz. They tried to cut a separate deal with Iran, stabbing us all in the back. 

But Trump and the Gulf States listened and laughed. What fools. The Gulf States called them cowards, and even Lebanon, which used to be close with France, told the EU and Macron to butt out. They stuck with Israel and the United States. 

That, despite the fact that the oil-exporting states in the region are currently losing money. They can afford it, Iran cannot. 

The Iranians, and by extension Europe and China, are panicking. This isn't how it was supposed to go. America was supposed to become weaker, and they stronger. 

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The opposite is happening. Europeans are desperately allying with China, assuming that the Chinese/Iranian coalition would win the "peace." They believed in the power of their magic incantations and their Voodoo curses on Trump. 

They somehow thought that, as oil-dependent countries, they could benefit from coddling Iran and rejecting the United States, Venezuela, Saudi Arabia, the UAE, and most of the largest oil-producing states in the world, aside from their good friend (not) Russia. 

The result? Ursula von der Leyen is telling people to turn off the lights and stop driving. The world's supertankers are all flowing to the Gulf of America to pick up American oil. Saudi Arabia is shifting its oil output through pipelines, and talking to Israel about building one that exits into the Mediterranean. 

And Iran's economy, far from being resilient, is on the verge of collapse. If reports are true and the IRGC is considering handing over more economic power to Pezeshkian, that would represent a major shift in power toward the civilian government, which wants to conclude a peace agreement. 

It wasn't supposed to be this way! Trump is an addled idiot with no strategy, right? 

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The only thing standing between the US and eventual victory is the Democrats, who are desperate to shut down the war before Trump can win it. 

Who do you want to place your bets on—Trump, or the Democrats and transnationalists?

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