The War Resumes in Full
Does this round continue until the financial system implodes?
The Iran-Israel-USA war has resumed, after Israel struck the southern suburb of Beirut (Dahiyah), crossing an Iranian red line. Iran responded with missile strikes against Israel. Trump said that he would stop Israel from retaliating. The Israelis retaliated anyway, leading to an Iranian response, and then the Houthi announced that they would close Bab al-Mandab in the face of Israeli shipping. Reportedly, the Houthi conducted strikes on the Prince Sultan Airbase in Saudi Arabia. If true, this would be a major escalation.
For the Israelis, their main objective is to prevent a deal that would allow Iran to rebuild its missile and drone capabilities, let alone its nuclear capabilities. For the Iranians, they do not want a permanent ceasefire under which they remain blockaded. Rather, they believe that renewing the war, especially if in a managed way, can bring about a financial collapse globally, which, in turn, would facilitate an agreement. The Americans, for their part, are balancing the war’s domestic unpopularity, the threat to the world economy, and Israeli interests that they cannot ignore, given Israeli influence over American political life.
