“Keep our city out of your reckless war talk,” said San Diego’s mayor, Todd Gloria, Monday night after President Donald Trump’s rambling speech at a rally in Nebraska included a particularly violent mention of the California city. Gloria was among several Democratic political leaders who were incensed after Trump – moments after predicted the Republican […]
Iran’s economic adaptation over decades, marked by domestic production, regional trade and Asian partnerships, is on course to thwart Washington’s economic terrorism.
US Treasury Secretary Scott Bessent’s prediction that Iran’s economy would soon collapse underscores the depth of delusion within the current American leadership.
“Iran is absolutely not sanctionable,” Deputy Economy Minister Mortaza Zamanian said this week as Tehran worked to keep trade flowing despite Washington’s latest sanctions campaign.
Zamanian cited Iran’s extensive borders, established commercial routes and longstanding trading relationships, saying that they make it impossible for external pressure simply to switch off the country’s economy.
His remarks came as Washington intensified its economic terrorism against Iranian oil, shipping, aviation, finance, technology and foreign companies supporting those sectors.
The new American campaign has been accompanied by extraordinary predictions from senior American officials, including Treasury Secretary Scott Bessent’s claim that Iran could have “nothing left to trade” within two weeks.
Speaking on September 27, Bessent claimed that Iran would probably make its final oil deliveries to China within two weeks, after which, he asserted, “they will have nothing.”
That prediction deserves comparison with history, because American administrations have imposed increasingly severe sanctions on Iran since 1979 while repeatedly expecting economic pressure eventually to produce collapse.
Yet the economy did not disappear, and Iran instead developed domestic industries, expanded regional commerce, strengthened trade with Asian powers and accumulated extensive experience operating outside Western financial channels.
The proposition that an economy which has absorbed American sanctions for almost half a century will suddenly disintegrate within two weeks therefore indicates the depth of delusion among the current US leadership.
Iran enters this confrontation possessing a large domestic market, extensive productive capacity, enormous energy resources and deeply established commercial relationships across Eurasia.
These are not temporary sanctions evasions assembled during the present crisis, but economic capabilities developed over decades through investment, industrial learning, regional integration and repeated adaptation to external restrictions.
The most important fact about Iran’s economic structure is its size, because a country with more than ninety million people possesses a domestic market capable of supporting extensive production independently of Western consumers.
The World Bank describes Iran as relatively diversified for an oil-exporting economy, with a substantial domestic market, a large workforce and significant activity across manufacturing, agriculture and services.
That domestic market sustains production across food, pharmaceuticals, construction materials, steel, petrochemicals, machinery, transportation, consumer goods and numerous intermediate industrial sectors serving Iranian households and companies.
Iran is therefore not an economy that must export continuously merely to keep its factories operating, because a substantial portion of its production already serves domestic consumption, investment and infrastructure.
That distinction becomes particularly important when external restrictions are designed around the assumption that cutting foreign trade will automatically paralyze domestic economic activity.
A country whose productive system is centered on domestic demand possesses an economic engine that continues operating even when international transactions become more complicated.
Iran has also spent decades building industrial capabilities specifically suited to its own resource base, population, infrastructure requirements and energy-intensive economy.
Steel production, petrochemicals, cement, refining, power generation, construction, food processing and pharmaceuticals represent substantial industrial ecosystems involving domestic engineering, manufacturing, logistics and skilled employment.
These capabilities have repeatedly expanded during periods when access to Western investment and technology was severely restricted, demonstrating that Iranian industrial development does not depend upon continuous Western participation.
Iran’s long exposure to sanctions has produced another asset that cannot be imposed or removed through a Treasury designation, namely a large body of accumulated technical and commercial experience.
When foreign manufacturers withdraw, Iranian companies have learned to redesign equipment, substitute components, develop domestic suppliers and work with companies from countries willing to maintain commercial relationships.
Academic research has documented this process in Iranian industries, including evidence that sanctions simultaneously restricted access to foreign technology while encouraging the development of domestic technological capabilities.
The resulting industrial knowledge extends beyond individual companies, because engineers, technicians, procurement specialists and managers have accumulated practical experience with restricted supply chains over successive decades.
A manufacturer that has operated under sanctions for years does not design its procurement system around the assumption that every international supplier will remain available indefinitely.
It develops alternatives as part of ordinary business planning, creating a commercial culture in which substitution, regional sourcing and domestic production are integrated into industrial decision-making.
This is one of the strongest reasons the prediction of sudden economic emptiness looks disconnected from Iran’s actual economic structure.
There is no single foreign supplier whose disappearance can remove Iran’s entire industrial capacity, because Iranian production is distributed across thousands of domestic enterprises and numerous regional supply relationships.
The system has been shaped by scarcity for so long that adaptation has become embedded within the operating methods of Iranian companies themselves.
Iran’s geographical position provides another form of economic strength that cannot be erased by financial sanctions, because the country physically connects several of the world’s most important commercial regions.
Iran borders Turkey, Iraq, Armenia, Azerbaijan, Turkmenistan, Afghanistan and Pakistan, while its southern coastline provides direct access to the Persian Gulf and Gulf of Oman.
Those borders connect Iranian commerce with the Caucasus, Central Asia, South Asia, the Persian Gulf, Turkey and Iraq, creating commercial possibilities extending in several directions simultaneously.
This geography gives Iran direct access to neighboring markets while also placing the country along important transportation corridors linking Russia, Central Asia and the Indian Ocean.
The significance of Zamanian’s argument is therefore practical rather than rhetorical, because no financial authority can relocate Iran away from its geographic position.
Goods can move through different borders, suppliers can be found in different countries and exporters can redirect shipments towards different markets when commercial conditions change.
Iran has consequently developed a regional trading system that does not depend upon one border, one port, one customer or one foreign economic relationship.
Its trade with Iraq, Turkey, the United Arab Emirates, Afghanistan, Pakistan, the Caucasus, Central Asia and China represents an extensive commercial geography developed through years of interaction.
The World Bank has documented precisely this shift, noting that Iranian trade has increasingly pivoted towards neighboring countries and China as sanctions have restricted conventional international economic relationships.
That transformation is now an established feature of Iran’s economy rather than an emergency measure invented after the latest American escalation.
China gives Iran’s economic system another dimension because it combines enormous industrial capacity with sustained demand for Iranian energy and other commodities.
In other words, Iran possesses access to a major global market even while facing comprehensive American restrictions on its oil industry.
China also supplies Iranian companies with machinery, manufactured products, electronics, industrial equipment and intermediate goods required across the domestic production system.
The relationship therefore operates in both directions, with Iran supplying commodities and China supplying industrial goods, creating a commercial relationship considerably broader than the simple sale of sanctioned oil.
Iran consequently does not need unrestricted access to every Western market when it possesses substantial trade relationships with China and numerous neighboring economies.
Iran’s energy resources provide perhaps the clearest demonstration of the country’s underlying economic strength.
It ranks second globally in proven natural-gas reserves and fourth in proven crude-oil reserves, giving the country extraordinary resource depth beneath its existing industrial economy.
These resources provide not merely potential export earnings but also abundant domestic energy and petrochemical feedstocks supporting Iran’s manufacturing, electricity generation, transportation and industrial production.
Iran has consequently developed an extensive downstream economy that converts hydrocarbons into refined products, petrochemicals and industrial inputs rather than relying exclusively upon crude-oil exports.
The World Bank has specifically noted that sanctions encouraged additional processing of crude oil and hydrocarbons into petrochemicals, illustrating how restrictions have contributed to changes within Iran’s economic structure.
The country’s resource base also gives it a durable position in Asian energy markets, where large industrial economies require reliable supplies of oil and petrochemical products.
That is why American attempts to eliminate Iranian oil revenue confront persistent commercial demand rather than an absence of buyers interested in Iranian resources.
The financial system represents another area where Iran has developed substantial independent capacity after decades of exclusion from conventional Western banking.
Iran’s economic ties span a broad network of foreign entities, reflecting its commercial reach across banking, shipping, logistics, commodities, and manufacturing.
Against this background, Bessent’s latest prediction appears less to be an independent economic forecast than an expectation based on what the American campaign is intended to achieve.
His claim that Iran will have nothing left to trade within two weeks assumes that removing one major source of oil revenue effectively removes the economic foundations supporting the entire Iranian system.
Iran’s actual economic structure is considerably broader, because oil exports represent one component of national economic activity alongside manufacturing, agriculture, services, domestic consumption and regional commerce.
The World Bank estimates that Iran’s economy contracted during the Iranian year ending March 2026, while simultaneously describing an economy that has adapted to sanctions through changing trade patterns and alternative payment mechanisms.
Those facts should not be confused with economic collapse, because contraction in a particular period is fundamentally different from the disappearance of productive capacity, markets and commercial institutions.
The historical record is even more significant, because American sanctions have been imposed repeatedly since 1979 and have been intensified dramatically during successive administrations.
The sanctions regime has targeted Iranian banking, oil exports, investment, technology, shipping and foreign companies, with especially severe measures introduced during the 2010s and after Washington abandoned the nuclear agreement.
Iran nevertheless retained its industrial base, rebuilt oil exports after earlier restrictions, expanded non-oil exports and redirected a growing share of trade towards neighboring countries and China.
The American expectation that economic pressure would eventually produce decisive Iranian economic capitulation has therefore been tested repeatedly against an economy that continued adapting.
Predicting that a strategy that failed to trigger economic collapse over half a century will suddenly achieve it within fourteen days merits no serious consideration, because it reveals the naivety of its proponents.
Washington now possesses powerful financial tools, but financial power does not eliminate Iran’s factories, oilfields, farms, engineers, consumers, borders, ports, regional markets or established commercial relationships.
Iran enters the current phase with an economic architecture extending from domestic manufacturing plants to Chinese refineries, from Persian Gulf shipping networks to northern Eurasian trade corridors.
Its domestic market provides magnitude and size, its industrial base provides production, its energy reserves provide commodities and its geography provides access to several major commercial regions.
In other words, Iran already possesses the domestic capabilities and international relationships required to keep its economy operating beyond the reach of any single American economic sabotage.
Originally posted on October, 7, 2026 – updated on October, 8, 2026
As the tragic anniversary of October 7, 2023, approaches —the day Hamas terrorists massacred Israelis near the Gaza Strip border, triggering the genocide in Palestine perpetrated by Benjamin Netanyahu’s Zionist regime —we are publishing an exclusive intelligence analysis.
This video marks the launch of a new Gospa News series titled “TOP SECRET Interview” by Fabio G.C. Carisio—founder and director of Gospa News—which will also be republished on the long-standing American site VT UnCensored Foreign Policy (where Carisio hosts a column).
This features an interview with Antonio Evangelista, a top Italian police official and counter-terrorism expert who spent seven years as Interpol official in Jordan, and who is now an author of geopolitical essayes and novels concerning international intrigue.
He confirms that the recent attack in the Holy Land—like the September 11 attack on the Twin Towers in New York—was a horrific “false flag” operations…
A “false flag” operation is one carefully premeditated over a long period by a foreign intelligence entity to implicate an enemy nation and discredit it in the eyes of global public opinion. It is planned down to the finest detail, carrying the risk of causing actual casualties.
In fact, if unforeseen “collateral damage”—such as unexpected deaths beyond the planned injuries or killings—occurs during the operation, the orchestrators are even more pleased, as the resulting bloodshed lends greater credibility to the terrorist attack.
Historically, the CIA (US counter-intelligence) and Mossad (Israeli counter-intelligence) have been recognized masters of such plots, occasionally utilizing partners such as the secret services of other nations or terrorist groups.
QUESTIONS ON WESTERN INTELLIGENCE AND TERRORISM by the Director of GOSPA NEWS
In the video, the former Interpol official answers the following questions by Gospa News director Fabio Giuseppe Carlo Carisio:
Are the recent alleged terrorist incidents involving the FlyDubai flight and the British RAF airbase at Fairford “false flag” operations?
What parallels exist between the plots of September 11 in New York and October 7, 2023, in Israel?
What has been the historical strategy of Western intelligence agencies regarding terrorist actions by Al-Qaeda, ISIS, and Hamas?
What drives Western governments to support bloody “colonial ventures,” thereby legitimizing genocides in the Middle East and Ukraine?
What lies regarding NATO wars in the Mediterranean basin are exposed in your historical, geopolitical, and economic study?
Do US, Europe and Italy face a real risk of a world war?
No summary today. If you want to hear the answers, watch the video to the end.
Below the video, you will find links to the major investigations mentioned in the footage.
VIDEO INTERVIEW to ANTONIO EVANGELISTA – Former Interpol official in Jordan
A Flydubai aircraft traveling from Dubai to Tel Aviv, Israel, was forced to land in Saudi Arabia after an “incident,” the airline said.
Flight FZ 1073 “experienced an incident while en route. The aircraft has landed safely in Tabuk Airport, and all passengers are safe and accounted for,” Flydubai’s spokesperson said in a statement.
In the latest update, Israeli leaders said that a “jihadist” pilot tried to crash a flydubai plane with mostly Israeli passengers, who overpowered him and prevented a “major disaster”.
“During the flight, as they approached the country, one of the pilots stabbed the other pilot and tried to crash the plane with everyone on board,” Prime Minister Benjamin Netanyahu said in a video message.
He said he spoke to an Israeli passenger who broke into the cockpit as the plane started to plummet and fought the pilot who was trying to bring down the aircraft.
“Another air crew member who was on the plane entered the cockpit and managed to stabilize the aircraft,” Netanyahu said.
“I salute these heroes, who showed extraordinary resourcefulness and courage. They saved many lives; they prevented a major disaster.”
Defense Minister Israel Katz described the incident as “an attempted jihadist terror attack” that was “thwarted only thanks to the heroism of several Israeli passengers”.
Katz did not identify his source for assigning a motive to the pilot, whose identity has not been revealed.
Netanyahu said the pilot who allegedly stabbed his colleague “has been arrested and is currently being interrogated by the Saudi authorities”.
“I have instructed the security services to prepare for additional potential threats. We are conducting ongoing situation assessments,” Netanyahu said.
Earlier, Israel’s Kan public broadcaster and Channel 12 reported that the Israeli military had scrambled fighter jets after fears of a possible hijacking. The office of Israeli Prime Minister Benjamin Netanyahu said the premier had held consultations on the matter and was “monitoring developments”.
“The incident is under control, and all measures are currently being deployed in order to return the Israeli passengers safely to Israel,” a statement said.
Israeli media reported that the passengers on board had stepped in to separate the pilots during their altercation, publishing photos of a passenger with a bloodied T-shirt.
Channel 12 reported that authorities were investigating whether or not one of the pilots had attempted a possible suicide by trying to crash the plane, with the other pilot apparently intervening to prevent the crash.
Other reports said that passengers reported cockpit screams, blood, and that one pilot stabbed the other with a knife.
Crew and passengers forced the door and subdued the attacker. Off-duty pilots helped land it safely in Tabuk, Saudi Arabia. Israeli officials treat it as a terror attack: the co-pilot (reports say Omani) repeatedly stabbed the captain, possibly intending to crash the plane. The suspect is under interrogation.
נוסעת בטיסת פליי דובאי: ״הישראלים ניטרלו את דוקר הטייס, צעקתי שמע ישראל כי חשבתי שלא נצא מפה״ pic.twitter.com/uNemz9Um6R
One passenger, Miriam, reportedly on board the aircraft, describes hearing screams and seeing blood in the cockpit after a pilot was stabbed. She says Israelis and crew neutralized the attacker; a doctor and nurse treated the pilot; she shouted Shema Yisrael, fearing they wouldn’t survive; and the plane made an emergency landing in Saudi Arabia.
According to data from the Flightradar website, the aircraft suddenly lost altitude during the flight, dropping from nearly 34,000 feet at 05:21 GMT to less than 17,000 feet at 05:22 GMT.
The incident comes just days after the Emirati president hosted Israeli Prime Minister Benjamin Netanyahu on Sunday.
Abu Dhabi acknowledged for the first time that Mohamed bin Zayed Al Nahyan met with Benjamin Netanyahu. Netanyahu’s office also confirmed the trip, saying the visit “focused on strengthening relations between the two countries and on regional challenges” amid delicate US-backed diplomacy over the war with Iran.
The American withdrawal from Iraq is not an end but a strategic pivot, a calculated transition from direct occupation to remote containment. By pressuring Iraq to disarm its resistance groups, Washington aims to neutralize Iran’s forward defense line and clear the battlefield for a potential full-scale confrontation with Tehran. This gambit risks either delivering Iraq […]
About 12% of world trade passes through the Bab el-Mandeb Strait, but the strait is only part of the story: tiny Djibouti, leasing its geography to five military powers, has become an epicentre of rivalry where strategic rent may turn into catastrophe. An Oil Crossroads Turned Battleground for Influence Approximately 12% of global trade and […]
The Saudi-backed Yemeni forces battling the Iranian-backed Houthi rebels claim they have regained a large swath of territory in a new counteroffensive launched on Monday. This includes the recapture of the Red Sea port city of Mokha and other key positions near the highly-strategic Bab al-Mandeb Strait (BAM). As we reported last month, the Houthis had taken these areas during an offensive of their own.
“On Monday, the Nation Shield Forces, the Giants Brigades, and the Tihama Resistance—supported by the Popular Resistance—seized control of the city of Al-Mokha in western Taiz Governorate following fierce battles against the terrorist Houthi militias backed by the Iranian regime,” the official Yemeni Saba news outlet reported. “The forces, aided by air support, succeeded in capturing Al-Mokha after clashes with the terrorist Houthi militias, which had controlled the city since early last September. The battles, which took place at various locations surrounding Al-Mokha, involved the use of diverse weaponry and resulted in casualties among the terrorist Houthi militias, the capture of several of their members, and the flight of others.”
Dubbed Operation Yemen Dawn, the counteroffensive aims to “restore state institutions, liberate the capital Sana’a, and end the Houthi terrorist militia coup,” Rashad al-Alimi, president of the internationally recognized government of Yemen, stated Monday on X.
“With God’s aid, the will of our people, the valor of our armed forces and all military formations, and the support of our brothers and friends, Yemen will march toward a new dawn of freedom, peace, and stability,” al-Alimi added.
على بركة الله، انطلقت عملية "فجر اليمن" لاستعادة مؤسسات الدولة، وتحرير العاصمة صنعاء، وإنهاء انقلاب الميليشيات الحوثية الإرهابية. بعون الله، وإرادة شعبنا وبسالة قواتنا المسلحة وكافة التشكيلات العسكرية، ودعم أشقائنا وأصدقائنا، سيمضي اليمن نحو فجر جديد من الحرية والسلام والاستقرار. pic.twitter.com/bP1h9EVdu2
The claims about the recapture of Mokha follow statements made earlier on Monday that the National Shield Forces and Giants Brigades, “liberated Dhubab [also spelled Dhobab] District and strategic positions around the Bab al-Mandab Strait in western Taiz Governorate on Monday following clashes with Iran-backed Houthi militias,” Saba claimed. “The clashes left a number of Houthi fighters dead or wounded, while others fled under pressure from the military operation. Several military vehicles and pieces of equipment were also destroyed or disabled. The forces are continuing clearance and security operations in the liberated areas and cutting Houthi supply routes.”
In addition, the Kingdom’s Maj. Gen. Turki al-Maliki, spokesman for the Saudi-led coalition, stated that “100 fighter jets were providing support to the forces of Yemen’s internationally recognized government fighting against the Houthis,” according to The Associated Press. “He said the coalition has secured ‘air protection’ of the strategic Bab el-Mandeb Strait and destroyed hundreds of Houthi targets as part of the ongoing campaign.”
After Yemeni officials announced the new counteroffensive on Sunday, al-Maliki vowed “full operational support” to the Yemeni government forces, until the Houthis are “eliminated,” the AP added.
On Monday, the Humanitarian Operations Coordination Center (HOCC), an organization closely aligned with the Houthis, confirmed increased Saudi airstrikes and threatened a response. HOCC warned “all airlines operating in Saudi airspace that it is unsafe, with the exception of the airspace over ‘Mecca and Medina,'” the official Houthi Telegram channel reported.
HOCC did not elaborate on that warning.
While TWZ cannot verify these claims, independent Yemen analyst Mohammed al-Basha said it appears that the anti-Houthi forces have gained ground on the Red Sea coast.
The founder of the widely quoted Basha Report stated on X that he had “high confidence” that Yemeni government forces recaptured Dhobab Airport, “cutting off the Houthi supply route between Mocha and Bab al-Mandab.” He added that “Southern Giants Forces are now heading towards the city of Dhobab, Al-Omari Camp, and Bab al-Mandab.”
بثقة عالية الساعة العاشرة صباح الاثنين ٥ أكتوبر استعادة مطار ذوباب وقطع طريق إمداد الحوثي بين المخا وباب المندب قوات العمالقة الجنوبية الان تتجه نحو مدينة ذوباب ومعسكر العمري وباب المندب https://t.co/6eHYJ3cnza
Videos have emerged showing what appears to be Saudi-backed forces running over Houthi fighters. The Houthis have called this a war crime.
Several videos emerging of Saudi-backed government forces driving over and shooting fleeing Houthi fighters caught off guard by their offensive in southwestern Yemen.
Amid the spike in fighting, the State Department issued a new warning to Americans in Saudi Arabia.
“Due to the ongoing security situation in Saudi Arabia and the potential for aerial drone or missile attacks on Saudi Arabia, the U.S. Mission strongly encourages all U.S. citizens to remain vigilant and follow the guidance of national alerts released by Saudi Arabia’s Civil Defense,” the department stated on X.
Saudi Arabia: Due to the ongoing security situation in Saudi Arabia and the potential for aerial drone or missile attacks on Saudi Arabia, the U.S. Mission strongly encourages all U.S. citizens to remain vigilant and follow the guidance of national alerts released by Saudi… pic.twitter.com/QzVaER1WZ8
Yemen Dawn was launched in the wake of large-scale Houthi advances. As we noted earlier in this story, the rebel group captured the port of Mokha and two key islands in the Red Sea, increasing its control over the Bab al-Mandab Strait (BAM). That moved the front lines to the key city of Taiz, which sits astride a major roadway linking it to the port city of Aden. The Houthis recently captured strategic hilltops near Taiz, advancing on the last road between the city and Aden, which serves as the interim capital of the Yemeni government.
The conflict between Saudi Arabia and the Houthis grew out of a civil war in Yemen that erupted in 2014. It expanded a year later when a Saudi-led coalition joined forces with the government ousted by the Houthis and raged on until the parties reached a tenuous ceasefire in 2022. The Saudis held off on getting involved in the recent Red Sea conflict which saw the U.S. and coalition warships duking it out with the Houthis, and eventually led to a U.S.-led air campaign over Yemen. Tensions, however, reignited after that conflict ended when the Houthis joined the U.S.-Iran conflict on the side of their major supporter.
Earlier this year, the Houthis imposed a blockade on the BAM and began striking Saudi ships in the southern part of the Red Sea as well as targeting critical energy terminals on that body of water and Saudi refineries. Iranian proxies have also struck the vital East-West pipeline that carries oil to the Red Sea to bypass the Strait of Hormuz, where Iran has vastly curtailed shipping after the launch of Operation Epic Fury. That line has reportedly since reopened after being shut down following a long-range drone attack.
Bab al-Mandab Strait. (Google Earth)
On Monday, Turkey and Pakistan said they will undertake a “rapid deployment” of troops to Saudi Arabia under the Mecca Joint Defense Agreement, a pact designed to assist the Kingdom’s fight against the Houthis, the Middle East Eye reported.
“The announcement on Monday came after representatives of the three countries held an emergency meeting in Riyadh where they condemned recent attacks on Saudi Arabia, in particular those targeting the holy cities of Mecca and Medina, without mentioning the Houthis by name,” the publication added.
Concern about maintaining the flow of energy resources from the region has spurred France and the U.K. to send additional forces to help the Saudis.
You can see Macron’s announcement in the following video.
Nous agissons pour protéger nos compatriotes des conséquences de la crise au Moyen-Orient. Objectifs : sécuriser les approvisionnements et faire baisser les prix à la pompe. pic.twitter.com/kvrgHcV4E4
The U.S. also appears to be increasing its assistance to Saudi Arabia. Though President Donald Trump turned down the Kingdom’s request to directly attack the Houthis, the U.S. is “providing aerial refueling for Saudi warplanes conducting defensive air patrols,” The New York Times reported on Sunday. That’s in addition to the previously known assistance to Riyadh provided by “more than 200 U.S. intelligence and military analysts working in Saudi command centers helping to analyze and select targets in support of its Yemeni allies,” the newspaper added.
The stark reality, especially facing European leaders like Macron, is that if Saudi oil infrastructure and transport nodes near the Red Sea are destroyed or the pipeline that feeds them is shut down for months, the last major oil lifeline from the region — and especially to Europe — will be closed off, sparking a deeper energy crisis.
Iran has already severely curtailed the flow of oil through the Strait of Hormuz since the U.S. and Israel attacked it on Feb. 28. The movement of oil has been further impeded by a U.S. blockade on Iranian ports. However, transits have been increasing as of late, thanks in large measure to U.S. military escorts that U.S. Central Command claims have allowed more than a billion barrels of crude to pass through the Strait of Hormuz.
Still, the price of Brent crude continues to hover over $100 per barrel due to a combination of factors that still make this a very dangerous region. This includes the ongoing threats from the Houthis in the BAM and the aforementioned spike in fighting between the Houthis and Saudi-backed forces. In addition, there are continuing Iranian attacks on shipping, including one today and three over the weekend, the skyrocketing cost of insuring vessels and the possibility Gulf countries may be paying Iran to allow their oil through. Such payments, essentially a toll, are “potentially handing Tehran a significant portion of the value of the cargo,” Al Jazeera noted.
Asked about the Saudi-backed counteroffensive, Trump said “It will all work out very well.”
Question: What's your view on the Saudi and Yemeni counter attack against the Houthis?
Meanwhile, talks between the U.S. and Iran to end hostilities between the countries remain at an impasse, though the two sides have not directly attacked each other in weeks. The U.S. rejected Iran’s conditions for reopening the Strait of Hormuz, and Tehran says it is preparing a reply to the U.S. counterproposal, CBS News reported Monday morning.
For his part, Trump continues to waver, suggesting the U.S. could “leave tomorrow” or resume striking Iran.
It is far too early to tell whether the new Saudi-backed counteroffensive in Yemen will have any lasting effect on the battlefield. The coalition arrayed against the Houthis isn’t known to be highly robust and the quality of its forces have been in question. Still, it has been clear that the Saudis and their allies had to act strongly, and this would be exactly that.
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