IT’S REALLY TIME someone gets out the butterfly net and scoops up the
U.S. president before he chokes on that foot he keeps putting into his big
mouth. WHILE the world watches with increasing alarm at the build-up of
American forces in the Middle East, Trump continues to threaten he will attack Iran after the U.S.
midterms tomorrow. Recall on September 22 at the opening ceremonies of the
current session of the United Nations, and before the UN General Assembly and
the world’s eye, Trump toyed with the idea of “annihilating” Iran, in a veiled
threat of using nuclear weapons. It was a shameful and shocking speech where
the U.S. president came across to those present like a someone unhinged from
reality. Trump claims, repeatedly, that America defeated Iran (it hasn’t), that
the Strait of Hormuz is open (it’s not); only ships of the Gulf countries that
have made arrangements with Iran and Oman, are getting out, with a small
percentage slipping past Iran’s Hormuz Strait defences or escorted by American
warships. Currently, the Straits remain contested between the United States and
Iran. There is oil exported via pipelines, in Saudi Arabi primarily; and ship-to-ship
transfers of oil, or else overland through the Caucasus, or by rail China-bound.
As far as the amount of oil getting out of the Gulf, I can’t really say—I see
so many figures to be sure; I'll guess there's a 20% decline in oil production to this point. But, it is fair to say the price of oil and distillates
has increased, shipping and insurance costs are way up, supply chains are affected across the board and people pay more for just about
everything. Like diesel fuel, for instance, something that's been in the papers recently. Also, global emergency stockpiles of oil have been drawn down considerably in most industrialzed countries. US stockpiles are nearing the end of their draw-down capacity, risking the collapse of the vast, underground, man-made salt domes in Texas and Louisiana (there are four) where the US reserves are located. Canada has no federally-mandated emergency supply, relying on the oil sands deposits of Alberta.
👉THE UNITED STATES failed in its attempt to bring about regime change in the
Persian state despite sixty-six-days of bombing beginning February 28*. That day began with a “decapitation”
strike, killing a number of security officials, along with the country’s Supreme
Leader, the Ayatollah
Ali Khamenei and several members of his family, including the
wife and daughter of the current Ayatollah, Mojtaba
Khamenei,1 who hasn’t made any public appearances since (for
security reasons and perhaps because he sustained severe injuries in the
attack).
NOW, the war between Yemen and Saudi Arabia, begun when the Saudis, for
some reason2, bombed Yemen’s international airport on July 17,
breaking the years-long truce between the two countries. This conflict threatens
to escalate, with Ansar Allah (“Helpers of God”), also known as the Houthis, launching
missile barrages into Saudi Arabia, as well as increasing its control of areas
inside Yemen still held by Saudi-led militias, and setting their sights on
three southern provinces in Saudi Arabia that were once Yemeni. Their missiles are hitting Saudi refineries and pipelines, with replacement costs for the damaged infrastructure estimated to be in the hundreds of billions of dollars!
Going forward, oil production in the Gulf region will be forever changed.
In the short term, there will be increased costs, supply shortages, a drop off
in critical exports like sulphur, chemical fertilizers, urea, diesel fuels,
kerosene (i.e. jet fuel—remember how global airlines cut routes and services
earlier this year due to the shortage of Gulf kerosene?), also natural gas,
polymers and raw plastics. Optimistically, it will take two to three years to rebuild and
reestablish supply chains broken by the Iran War. It could take much longer the longer this war goes on.
Thus far, I haven’t mentioned
the political changes that are sure to follow in the coming months and years in the region and globally because of this incredible FUBAR. Stay tuned.
👉AND WE MUST WONDER what the American president will do when the mid-term
elections result in a crushing defeat for the Republican Party as most
pollsters suggest. Will Trump decide to drop more bombs on Iran, now that he is
no longer constrained by how such a move might adversely affect the election
results? (A majority of Americans do NOT want a continuation of this war.) If
he goes after Iran’s civilian infrastructure (a war crime) those Gulf countries
continuing to host US ground bases (whatever is left of them after Iran’s
missile attacks earlier this year) and who allow their air space to be used by US/Israeli warplanes will be toast. At that point, all bets are off.
👉Then there’s Israel and the October 28 election results with Bibi
Netanyahu and his Likud party failing to keep their majority thus assigning
Netanyahu the role of “caretaker” Prime Minister while the wheeling and dealing
of closely aligned blocks of parties begins in earnest to see who among them
can form a majority. It’s not certain any can and there may be new elections in
the coming months, a not unusual circumstance in Israeli politics. However, Netanyahu
may yet pull a rabbit out of a hat and cling to power; he’s done it before.
What will change if Bibi is ousted from his seat? Probably less than you’d
expect. The two main coalition parties—Netanyahu’s Likud and the principle opposition
party, Yashar, led by former IDF general Gadi Eisenkot—need to peel away enough
seats from other parties to form a ruling coalition in the Knesset. A spanner
in the works is the number of seats the two Palestinian-Israeli parties
picked up this election cycle, a total of nineteen between them! [Palestinians comprise
nearly 20% of the Israeli citizenry. They are descendants of those who remained in
Israel proper following 1948’s Nakba.] They could
be kingmakers in the Knesset if they threw their allegiance to either the Likud or Yashar
party, but Netanyahu and Eisenkot have said they are unwilling to work with “Arab”
parties.3 But, if Netanyahu wins another term in office as PM, that
means his two thuggish coalition partners, Ben-Gvir and Smotrich, will also retain
power, and all three will then claim they have a mandate to continue business-as-usual
in the Levant. Should Eisenkot’s crowd succeed in ousting the unpopular Prime Minister,
there will little to distinguish the Yashar party from Likud, policy-wise save for a more moderate
tone; ethnic cleansing (maybe with a little less genocide) and the “Greater Israel” project will continue apace.4
CHEERS, JAKE. _____________________________________
* February 28 also marked what I
assume was the accidental bombing of a grade school in Minab, killing 120
schoolgirls and twenty-six teachers. Commentators suggest the school was hit
because of out-dated ISTAR (“Intelligence-Surveillance-Targeting Acquisition”)
data used by Palantir’s “Mavin Smart System”, AI software. [Not so smart. Just
sayin’. Ed.] To date, here have been no acknowledgements or apologies from the
American president or the Secretary of War “Pistol Pete” Hegseth for this
tragedy. Palantir is a large, American tech company that has close ties to
Israel.
1. Mojtaba is the son of the murdered 82-year-old Supreme Leader. He was
elected Supreme Leader by the Assembly of Experts on March 28.
2. Some analysts suggest the United States arm-twisted/bribed Prince Mohammed
bin Salman (MBS) with promises of aid to build a domestic nuclear
program. The U.S. hoped Yemen would be forced to curtail its blockade of the
Bab al-Mandab Strait to deal with the Saudi threat, but it’s the other way
around with the Saudis on the back foot.
3. The Joint List and Ra’am parties are called, collectively (and
pejoratively), the “Arab” parties, the label “Palestinian” being such a
difficult concept to swallow in a society that does not recognize the rights of
indigenous Palestinians in the first place. Gaza and the West Bank have no vote
in Israeli elections, obviously.
4. Eisenkot is no liberal. He’s as far right as Netanyahu. A former IDF general,
his party platform is critical of Netanyahu on domestic issues and Netanyahu’s
unpopularity with many in Israel, but there's little daylight between them
when it comes to the issue of the Palestinians.
“Palestinians
should not expect a fundamental change in Israeli policy if the Netanyahu bloc
loses power,” said analyst Samer Jaber, a doctoral researcher specialising
in political economy at Royal Holloway, University of London.
“The
major political blocs share core positions on the Palestinian question,
including support for the existing settlement structure, while the state
institutions that formulate and implement policy would remain unchanged,” he
added. (Al Jazerra)



