As Trump eyes war with Iran to bolster his legacy and appease his pro-Israel backers, Tehran’s likely retaliation could crash global markets, spike oil prices, and bring economic pain directly to the American public – turning support for apocalyptic politics into a crisis at the checkout line.
The Cradle
But it’s not only the Israeli lobby banging the war drums; American Evangelicals – especially groups like “Christians United for Israel” – also support war, believing it will “save Israel” from the “Iranian menace.” Evangelical membership in the 119th Congress (2025–27) is high. War with Iran is not (yet) popular in the US, but – just as with Iraq – consent will be manufactured by Washington elites and the media.
Trump’s outreach to Russian President Vladimir Putin to resolve the Ukraine war partly aims to shift the Pentagon’s attention back to West Asia. He assumes that an early 2025 war with Iran will “save Israel” and secure his legacy, letting him focus on “America First” for the rest of his term.
But war with Iran could also backfire disastrously, sink his presidency, and derail the ambitions of 2028 Republican hopefuls like Marco Rubio and J.D. Vance. For starters, should the military campaign encounter any unforeseen backlash – which is highly likely, and the reason the Pentagon has assiduously avoided direct confrontation with Iran – the Democratic Party could retake both chambers of Congress after a US stock market crash and recession triggered by the war.
Iran’s military responses
Iranian leaders have vowed “devastating” retaliation for any attack on their soil. This would likely involve missile strikes against Israeli and US military targets – and possibly infrastructure and economic targets within the occupation state. If Israel uses tactical nuclear weapons against Iran’s nuclear facilities, Tehran will escalate further.
Whether or not nukes are used, war would shock the global economy, send oil prices soaring, and halt maritime traffic through the Strait of Hormuz. The greatest impact will fall on countries most dependent on West Asian oil.
The US economy may be less affected in the short term. Its stock markets, already down 10 percent since Trump’s return to the White House, would decline further – but Trump is gambling that households will not feel the pain. But if the Islamic Republic launches economic warfare that “brings the war home,” political dynamics will change.
Economic warfare
Most Americans are detached from the notion and consequences of war because, since the Civil War, US wars have been fought far from its borders. Even during the World Wars, though American families faced personal loss, the nation did not endure widespread suffering – unlike Britain, which imposed food rationing from 1939 to 1954.
The “Global War on Terror” impacted some communities, but not the country. US troops often joked in Iraq: “We’re at war; America’s at the mall.” Americans kept spending and enjoying life, while Iraqis and US occupation soldiers endured the brutal costs.
Iranian leadership understands this disconnect. The US stock market is a tempting target. In 1929, at the start of the Great Depression, just 2.5 percent of Americans owned stock. Today, about 61 percent of US adults – roughly 160 million people – own shares through private accounts, pension schemes, or retirement plans.
Factoring in children in such households, roughly 200 million Americans are exposed to market fluctuations. Trillions more dollars are invested by corporations, universities, and foreign institutions. The exposure is deep.
The US economy is fragile. Mark Zandi, Moody’s chief economist, warned that the risk of recession is “uncomfortably high and rising.” On 19 March, Federal Reserve Chair Jerome Powell kept interest rates steady, citing slowing consumer spending and growing uncertainty. Trump, fearing economic fallout, raged on Truth Social over the Fed’s refusal to cut rates. He announced retaliatory tariffs set to take effect on 2 April.
Household debt is rising – $18.04 trillion as of Q4 2024 – with increasing defaults on auto loans and credit cards. Americans, like the federal government, spend on credit. Investors borrow against their portfolios with margin loans. If stock values fall, forced selloffs to cover debts could intensify market collapse. “Margin calls” – demands for loan repayments – played a greater role in the ensuing economic turmoil than the 13 percent market drop on 28 October 1929.
The US economy is already strained, and consumers are over-leveraged. A large external shock could push it into a deep recession. Stock markets would plunge, wiping out pension savings and private wealth.
How far markets fall would depend on the force of Iran’s blow. The current 10 percent drop has already hurt. A deeper decline – say, 25 to 50 percent – would cripple the economy, spark layoffs and bankruptcies, and tighten credit. That would suppress consumer spending and crash the housing market, as in 2008.
Tehran’s targets
As Iranian leaders have often repeated, “If Iran cannot sell oil, no one will.” If US or Israeli forces strike Iranian tankers or infrastructure, Tehran is likely to target US economic interests and the oil sectors of any Persian Gulf Arab state that supports the attacks by allowing fighter jets, drones, or missiles to launch from their territories.
The Islamic Revolutionary Guard Corps (IRGC) may choose to strike Bahrain, which is an obvious military target since it hosts the US Naval Forces Central Command. In addition to military sites, Iran could target the Bahrain Petroleum Company’s refinery, which processes 270,000 barrels per day, along with its marine terminal and oil storage facilities.
The oil farm holds 14 million barrels – ample fuel for a dramatic strike. Iran could also destroy the King Fahd Causeway connecting Bahrain to Saudi Arabia to prevent Riyadh from sending ground troops to suppress unrest among Bahrain’s majority Shia population, as it did during the 2011 uprising.
In Iraq, too, US military bases will almost certainly come under fire. Beyond that, Iran-aligned factions within the Popular Mobilization Forces (PMF) may attempt to capture the 2,500 US troops still stationed there – not to kill them, but to take them as hostages.
Living captives would be far more valuable, creating a nightmare scenario for Trump and serving as a sharp reminder to Americans – who often forget the wars they once supported – that US troops remain in Iraq more than two decades after the 2003 invasion. These POWs would likely be scattered across the country, making coordinated rescue missions difficult and turning them into bargaining chips in any future negotiations.
Jordan, having allowed Israeli overflights last year in October during Iran’s retaliatory strikes and before that in April, is likely to do so again and could face significant retaliation. In addition to the Zarqa oil refinery, Iranian forces might strike political, military, and intelligence targets. Such attacks would certainly provoke unrest among Jordan’s population, the majority of whom are of Palestinian descent and already harbor grievances against their leadership for its collusion with Tel Aviv.
The UAE, if complicit in the attacks, could face military strikes on its energy infrastructure and power plants, as it experienced during its war with Yemen. The Emirates is particularly vulnerable due to its demographic makeup – about 88 percent of its population consists of foreign workers. If those workers flee following targeted attacks, the country’s economy would be brought to its knees.
Qatar and Oman are likely to be treated differently. Muscat, with its long-standing neutral foreign policy in the region, has maintained warm relations with Iran, and will not likely participate in a US military aggression. Doha also enjoys relatively good relations with Tehran, though it hosts the US Central Command's (CENTCOM) Al-Udeid Air Base and worked to thwart Iranian interests in Syria. Iran might strike CENTCOM's headquarters in West Asia, but is unlikely to target other Qatari assets.
Saudi Arabia presents a more complex scenario. Although both Russia and China have encouraged reconciliation between Iran and Saudi Arabia, the kingdom may not remain on the sidelines. If it does participate in hostilities, it would become a high-priority target.
Even if Riyadh stays neutral, Iran might still strike its East–West oil pipeline, which terminates at the port of Yanbu. That pipeline – built in 1982 to bypass the Persian Gulf – delivers over three million barrels per day to Europe.
Yanbu’s port, refinery, and export terminals, some of which are operated in partnership with western firms, would be natural targets. A simultaneous closure of the Strait of Hormuz and disruption of Red Sea traffic would block the export of roughly five million barrels per day. While former UN weapons inspector Scott Ritter predicted oil prices could surge to $120 per barrel, Iran might be capable of pushing them as high as $200.
China, when retaliating against Trump’s tariffs, acted strategically. It imports just 7 percent of its pork from the US, but most pork producers are in Republican “red states.” Targeting that sector hurt Trump’s base directly.
While spiking oil prices and global economic turmoil would harm Iran’s allies and the Global South, Iran’s adversaries in the US, UK, Israel, and EU stand to lose the most. If Iran wages a smart economic war, even Evangelicals may start caring more about their grocery bills than hastening the reconstruction of the “Third Temple” and other end-times prophecies.
No comments:
Post a Comment