The war on Iran has not only ended in a humiliating defeat for the United States, but resulted in a dramatic shift in the balance of power in the Middle East and the Global South.
The humiliating defeat of Israel and the United States in their war on Iran, along with the savagery of the ongoing genocide in Gaza, are ushering in a new world order. This order is one where voices of reason and stability emanate not from the West — which spent tens of billions of dollars sustaining Israel’s genocide — but from the Global South, including China. It is an order where alliances are being rapidly reconfigured to protect countries from a rogue American state that lashes out like a wounded beast, as it spirals toward terminal decline.
The end of the U.S. Empire, led by an impetuous and clueless Donald Trump, is irreversible. The U.S. has lost its sixth war in the Middle East in 25 years. Iran’s power has been enhanced not only because it — along with Oman — controls the Strait of Hormuz — where roughly 25 percent of the world’s seaborne oil and 20 percent of the world’s seaborne liquified natural gas pass through — but because it has delivered a stark message, with its drones and missiles, to U.S. allies and bases in the region, while sending the global economy into a tailspin.
Trump and Israeli Prime Minister Benjamin Netanyahu — who reportedly lured Trump into the war with Alice-in-Wonderland visions of easy regime change in Iran following the decapitation strikes against the country on February 28, 2026, which included the assassination of Iran’s Supreme Leader Ayatollah Ali Khamenei and other political and military figures, along with 168 school children and their teachers — may strike Iran again. They are desperate. But a renewed bombing of Iran will not work. Iran’s mosaic defense strategy ensures all political and military commanders are easily replaced.
Iran can strangle the world economy by closing the Strait of Hormuz. It can accelerate the pain by getting its Yemeni allies — Ansar Allah — to close the Bab el-Mandeb Strait in the Red Sea, just as they did to Israel-bound ships when defending Palestinians after October 7. This could result in a complete blockade. Saudi Arabia, with the Bab el-Mandeb Strait open, is able to bypass the Strait of Hormuz and export five million barrels a day through its pipeline to tankers in the Red Sea port of Yanbu.
If a ceasefire between the U.S. and Iran is not reached soon, the global economy will crash, perhaps within weeks. The U.S. and its allies, such as Japan, have released some of their extensive strategic oil reserves, however they will not be able to cushion markets indefinitely. Stockpiles in America’s Strategic Petroleum Reserve are near their lowest in more than 40 years. Once these reserves are depleted, the price of fuel will skyrocket. If a barrel of oil shoots up to $200, the price at the pump could climb as high as $10 per gallon. This, coupled with shortages of other petroleum-based products, along with nitrogen fertilizer, aluminum, and helium — an indispensable element in the production of MRI machines and semiconductors — are already shutting down vital industries and driving up prices on basic commodities. (more...)
The Rise of the Global South
