Middle East

Oil at $100 a barrel is a disaster for Trump

When Donald Trump's political obituary comes to be written, none of his colorful phrases over the years will seem quite as outrageous as his remark in June, when the Consumer Prices Index hit 4.2 percent: "I love the inflation." He later claimed that he meant he loved the inflation figures because they weren't as high as they could have been. But that isn't going to wash: he had scorned the very people who had voted for him, and for whom inflation is a very big deal, by dismissing inflation as something unimportant.  He won't be making the same mistake, presumably, now that oil prices have hit $100 a barrel once more, for the first time since July.

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Britain Israel

Britain’s sanctions against Israel will backfire

The historian Niall Ferguson, sometimes of this parish, said: “The law of unintended consequences is the only real law of history.” The new British Prime Minister Andy Burnham’s government is getting a lesson in that with its new sanctions on goods from Israeli settlements. The sanctions are meant to help the cause of a Palestinian state but may have the opposite effect. As an added bonus, they could hit British exports to the US. Ben-Gvir demanded international sanctions against Britain as long as we remain in possession of territory ‘violently stolen from the Argentine people’ The “comprehensive reset” of British policy towards Israel comes in the middle of a rancorous Israeli general election campaign.

Why Britain’s West Bank sanctions are savvy politics

British PM Andy Burnham’s move to impose sanctions on West Bank settlements is politically savvy – but not because it will achieve his purported aim of advancing a two-state solution. For one thing, the impact in Israel will be minimal. Ed Miliband was clear that the new sanctions regime will target those “providing services such as construction or financing for Israeli settlements,” while trade within the Green Line will continue. Yet the principal providers of such services to the settlements are Israeli banks, major companies and the Israeli government itself. Short of Miliband sanctioning them, the policy is unlikely to achieve much. The economies of the West Bank and Green Line Israel are completely intertwined.

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Trump’s stalemate with Iran looks set to limp on

The standoff between Iran and the United States has currently reached stalemate. Iranian hopes to use control of the Strait of Hormuz as a lever to force an American climb-down show no sign of realization. The IRGC’s extension of its methods of asymmetrical warfare to the Strait was a creative and bold move. In the same way that terrorist movements seek to offset military inferiority by striking directly at an adversary’s civilian population, Iran tried to raise the costs for civilian ships seeking to transit the Strait to a level which companies and shipowners would find intolerable. In this way, Iran hoped to render US conventional naval ascendancy meaningless.

Can General Bessent win the war? 

At a much-anticipated press conference Monday, Secretary of the Treasury Scott Bessent minced no words. The United States, he said, is now imposing unprecedented sanctions not only on Iran but on every country, corporation, bank, and shipping company that does business with that regime.   Thanks to these US policies, Bessent said, all Iran’s facilitators must now choose between economic ties with the US and those with the Islamic Republic of Iran. Do business with Iran and you will be severed from the US market and the entire dollar-based trading system, the centerpoint of the world economy.  That policy can be summed up in two words: “economic asphyxiation.

How will harsh sanctions on Iran play out?

If you control the world’s largest economy, as the US does, and if your enemy depends on exports to the West, as Iran does, it should hardly be a surprise when the big economy decides to use its commercial and financial leverage.   That is exactly what the US is doing – and this week it announced it would ratchet up the pressure substantially. Some sanctions were already in place, most notably restrictions on Iran’s oil exports, enforced by the US Navy. What’s new is that those sanctions will be supplemented by a full range of additional sanctions on commercial and bank transactions routed through third countries.

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How Russia and China are helping North Korea dodge sanctions

If you were Kim Jong-un, you’d be pretty happy right now. North Korea’s third supreme leader is not only the hermit kingdom’s most successful leader – he is also the richest. With the sanctions-stricken country having amassed over $20 billion in foreign currency earnings as of last year, Kim is at his most emboldened since he took power in December 2011. As more North Korean artillery, missiles, and manpower head in Moscow’s direction to aid its war against Ukraine, Kim knows that for now, North Korea can count on its Cold War patrons of Russia and China for brotherly support. Pyongyang’s neighbors offer a crucial helpline in circumventing international sanctions and ensuring the Kim regime continues to reap rewards. North Korea is no stranger to evading sanctions.

Is Iran softening on the veil?

The Islamic Republic of Iran has made many concessions in its long decline. Until now, it stood firm on one rule: women must remain covered. The veil, it has insisted since the 1979 Revolution, was a divine instruction. But apparently divine instructions can lapse. This summer, a young woman appeared at a pro-government rally in a pink top and acid-washed jeans, her hair loose on her shoulders. She addressed the camera while standing among a crowd of women veiled from head to toe. Rather remarkably, the footage went on state television. Five years ago, that footage would have been evidence for a prosecution. Now, it is propaganda. The veil used to divide the pious from the impious.

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Is Donald Trump becoming the new Jimmy Carter?

One day President Trump wants to dial down hostilities with Iran. “We’re low-keying” the conflict, he said Sunday. A day later, though, he was keyed up. After Tehran demanded reparations from Washington as part of its attempt to resurrect June's Memorandum of Understanding, Trump said on Truth Social that it was the Iranians who should: Compensate America for all of the people that they have killed and gravely wounded with their roadside bombs and many conflicts, for which they are famous, as led initially by General Soleimani, including the families of those killed on the USS Cole, and thousands of others killed in combat. Now it is Trump who has become a hostage of Tehran The problem is simple. For all his bluster about staring down the mad mullahs, Trump is on the run.

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What is the point of the new ‘Muslim NATO?’

Pakistan’s defense minister, Khawaja Asif, rather excitedly proclaimed a new defense agreement – the Mecca Joint Defense Agreement – between Saudi Arabia, Pakistan and Turkey as the beginnings of a “Muslim NATO” last week. He proceeded to call on Muslim countries to set aside their differences and join them. The key clause – that an attack on any one of the three countries would be considered an attack on them all – is virtually the same as NATO’s much-vaunted Article 5, widely regarded as the underpinning of that alliance.

Will Hamas really disarm?

No one imagined that Hamas would voluntarily hand over its weapons and turn to politics and peace in the Gaza Strip. Even when President Trump announced his Board of Peace and 20-point plan toward a settlement to end the war with Israel, the sticking point, every analyst insisted, would be the disarmament of an organization designated a terrorist group by the United States, Britain, the European Union, Australia and many other nations. It’s unlikely that Hamas will cooperate unless Israeli troops withdraw as per the agreement Now, after months of negotiations – involving Trump’s two Middle East envoys, Egypt, Qatar and Turkey – and without any fanfare, the seemingly impossible has been achieved.

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Trump is a study of indecision on Iran

The US Senate narrowly defeated a measure yesterday intended to crimp, if not terminate, President Trump’s ability to conduct hostilities against Iran. The 50-49 vote on a war powers resolution testified to the mounting hostility toward the military campaign among American voters, two-thirds of whom regard the conflict as a futile endeavor. The result is that Trump’s own popularity rating has plummeted to 32 percent, edging out Joe Biden’s 33 percent shortly before he declared that he was exiting the presidential race in July 2024. Presumably, this is one personal record that Trump will not be inclined to tout at his MAGA rallies. What is to be done? Two diametrically opposed camps have emerged on the right to advise Trump on Iran.

Will the wars in Ukraine and Iran merge?

This is a fraught moment, perhaps the most dangerous since the end of the Cold War. Two major wars are being fought, one threatening European security, the other the world’s energy supply. In East Asia, China continues to threaten Taiwan, and North Korea is reportedly upgrading its military technology with Russian help. Put simply, the bad guys are on the march, fighting for their regimes’ survival, their malign domestic projects, and as much regional domination as they can achieve. Although the wars in Ukraine and Iran have remained largely separate, there have been several intersections recently and a gnawing fear they could merge into a global conflict. That grim possibility is still a longshot, but there is real danger because the coalitions fighting the two wars overlap.

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The strange death of Islamism

Iranians have adopted a new sport in the past few years: knocking the turban from a passing cleric’s head. There are points for technique and for how high and how far you can get their headgear to go. These are small acts of revenge against a hated religious elite who came to power on a wave of arrests and torture and who, as recently as January, ordered thousands of peaceful protesters to be shot in the streets. It’s also a symptom of something larger. Political Islam is in retreat across the Middle East and the wider Muslim world. “The strange death of political Islam” is an idea that’s in the air at the moment. Rule by clerics, and by others who claim to speak in the name of God, is going out of fashion in the Islamic world.

There is no alternative to the Strait of Hormuz

As a UFC aficionado, President Donald Trump might know what a twister is. It works by cranking the victim’s head one way while controlling his hips in the other. Apparently, the pressure that this places on the spine is agonizing, leading to a rapid tap out or life-altering injuries to the back and neck. In the Middle East, the President finds himself in a geopolitical twister. On the one hand, Iran’s Memorandum of Understanding terms are too unpalatable for President Trump to swallow – crystalizing as they would an unambiguous defeat, with all the strategic and political consequences that that would entail. On the other, the US Air Force has been unable to suppress or interdict Iran’s missiles and drones.

The Middle East is drifting into chaos

The war in Iran rumbles on, in parallel to talks that are aimed at stopping it. Both sides would rather the war were over; this limbo is causing mayhem in Iran’s economy and politics, while MAGA too has been bent out of shape. Yet a reality might be starting to take hold in which fighting simply drifts aimlessly, much like the peace talks. And much like the ships that are stuck in the Strait of Hormuz, too. As both sides try to game the stalemate, unintended consequences are emerging The US is calculating that a naval blockade, in the absence of a memorandum of understanding, can economically constrict Tehran, narrowing its room for maneuver and eventually forcing Tehran back to the table.

Israel’s plan for a new Iran war

Metaphorically speaking, champagne bottles were uncorked in the Jerusalem office of Israeli Prime Minister Benjamin Netanyahu after Donald Trump declared at the NATO summit in Ankara that the ceasefire with Iran was over. Trump’s remarks – in which he branded Iran’s leaders "scum," "a cancer" and "liars" – were sweet music to Netanyahu and his government.  The 60-day ceasefire, brokered by Pakistan and Qatar on June 17 to end the war between the United States and Israel on one side and Iran on the other – a war that began on February 28 – was effectively imposed on Netanyahu. The Israeli Prime Minister, Mossad, the Israel Defense Forces and the Israeli Air Force all wanted the fighting to continue.

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Both Iran and Trump need peace

The US military has launched a fresh round of strikes against Iran – the second in the past 48 hours – after President Donald Trump declared the fragile ceasefire agreement between the two sides was “over.” Trump said the latest attacks were in “retribution” for Iranian strikes on three cargo ships in the Strait of Hormuz. Trump, in an angry tirade, referred to the Iranian leadership as ‘scum’ Trump added that if there were further attacks on shipping “it will get much worse!” The strikes hit a railroad bridge in Iran’s northeast, according to Iranian state media, as well as a military base in the coastal city of Bushehr, which is the site of the country’s only civilian nuclear plant.

Trump reveals the limits of American power

Donald Trump’s quest for regime change in Iran has backfired horribly. The President misunderstood the resilience of the 47-year-old Islamic Republic of Iran, the strategic calculations of one-time ally Israel and the physical and political geography of the Strait of Hormuz. Vice President J.D. Vance appears now to be positioned as the public face of failure. The decision to launch the assault on Iran was underpinned by Israeli confidence that Iran’s leadership could be toppled and that the United States’ overwhelming firepower would produce shock and awe. It came in the immediate aftermath of plans to acquire Greenland, incorporate Canada, assert dominance over the Panama Canal and topple the then Venezuelan government. Cuba is no doubt next on Trump's list.

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The Iran war is Trump’s Suez crisis

Clarissa Eden famously declared that "in the past few weeks I have really felt as if the Suez Canal was flowing through my drawing-room." Does Melania Trump feel the same about the Strait of Hormuz? Or perhaps Donald will be reminded of the strait every time he hits one over the water at Bedminster. He ought to be. The Iran war will define his presidency. It is his legacy – just not in the way he imagined. In 1956, a British prime minister discovered that we were no longer a great power. It was an end to illusions. We liked to think we had the best navy in the world, but that was irrelevant to whether we could keep a canal in Egypt.

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