Assessing geopolitical turmoil

The embed is a screencap from Facebook, which I haven't tracked to the primary source, but I quite agree with the expressed sentiment.

I am disappointed (but not surprised) that major news outlets tend to report on what Trump is saying without adding any nuance or interpretation.  Perhaps that is their perceived role, or perhaps they are under pressure not to openly criticize this authoritarian president.

Personally, I have been monitoring Al Jazeera every night.  They have a You Tube channel that broadcasts live in English 24/7.  Whether you hear live news or recordings depends on your global time lag (mine is 9 hours).  The broadcasts originate from Qatar and include interviews with Middle Eastern and European leaders or their representatives.

What I hear just from brief visits to that site is quite different from what I hear on American sites.  This morning the equity, bond, and oil markets are reacting positively to reports that U.S. and Iranian representatives "are talking" and that "there are hopes for a settlement."

The underlying truth (I think) is that the Trump administration has issued a set of 15 guidelines (no nuclear weapons capability etc).  Trump is expecting "unconditional surrender" including control of Iranian oil production.  Iranian leaders have issued their "talking points" which include "sovereignty over their nation and the Gulf of Hormuz" and "reparations for damages done by the U.S. and Israel."

Does anyone actually think there is serious talking going on.  Nonsense.  Everyone knows that this apparent cease-fire is nothing more than an opportunity for both sides to reload.  The U.S. has elite ground forces en route to the conflict area:

For their part, the Iranians are at least talking locally about unceasing resistance:

Trump and Hegseth seem to feel they can bomb Iran into submission - a sentiment that scarily echoes what I remember from coming of age during the Vietnam war, when the goal was to "bomb them into the Stone Age."  Iran is not Vietnam.  Consider just the size:

Now consider Iran's leverage in the Gulf region.  The obvious first leverage was control of the Strait of Hormuz.  Trump has said "we don't care, we don't need oil from there, we have our own", which is true and quite irrelevant.  Here is the outflow from the Gulf:

Very little oil goes to the U.S.  But India is already hurting from gasoline shortages.  China less so because they have the world's largest strategic reserves of oil stored underground.  But the rest of Asia is suffering, and Europe is worried.  

The other things that come out of the Stait of Hormuz include the fertilizers that much of the world depends on for agriculture.  Trump's cavalier assessment that he doesn't care about Hormuz closing ignores U.S. farmers, who may be pushed to insolvency because of fertilizer costs.

Liquid helium comes out of the Gulf.  I think some MRI centers in the Americas and Europe have already indicated that they will decrease the availability of MRIs.  And I think liquid helium is also critical for some computer chip manufacturing.

Note that Iran has been attacking neighboring Gulf states, in part because those states have supported the U.S. with air bases, but also because they can do immense damage to the regional economies.  The next potential targets:  desalination plants.

Image cropped for size from the original in The Guardian.

Most Gulf countries only have water reserves to last about a week. Analysts have said that if any of these plants are struck and capacity taken out, the impact would be quick and severe and it could wipe out water to major cities in a matter of days.

Power plants need desalinated water for cooling, so electricity supply would be affected. It would particularly affect healthcare and the running of hospitals, and would likely have to cause industries and businesses to shut down for as long as there was a water shortage.

Water rationing would likely have to be introduced. There are concerns that this could lead to mass panic and civil unrest.

You want to talk about "bombing someone into the Stone Age"?  

Trump undoubtedly feels "the pressure of the midterms" because Republicans have been losing local elections all around the country, including Texas and yesterday in the district that includes his precious Mar-a-Lago. He will certainly be getting panicy calls from Gulf emirates who worry that their entire economies may be destroyed by a few well-placed ballistic missiles.  

Enough gloom and doom for right now.  More later on the potential for a world-wide recession, because despite Trump's assertion that things will quickly revert back to normal, it's more likely that "things" are going to continue to get worse...