By Larry C. Johnson | SONAR21 | October 4, 2026 

Once again Karl W. Miller has put numbers to a problem that most of the commentariat still treats as a temporary price spike. His latest forward outlook, “The Five-Year Global Energy Crisis,” dated October 3, makes an argument that should alarm every finance ministry from Berlin to Jakarta. The war’s damage to Gulf energy infrastructure is not a disruption that ends when the shooting stops. It is a reconstruction problem measured in years and trillions of dollars, and while it is solved, the world will be short of the fuels that run its economy.

A ceasefire is not a repair crew

Miller’s central insight is simple. A ceasefire can reopen a shipping lane overnight. It cannot manufacture a compressor, mobilize commissioning engineers, or pay a contractor. The next phase of this crisis, he writes, is a competition for cash, equipment, qualified contractors and finished fuel.

His cost model is sobering. In his aggressive case, rebuilding the damaged Gulf energy system requires $1.16 trillion in total program funding. Under prolonged stress, with scarce equipment, rising prices and delays, the bill reaches $2.53 trillion. Even his most favorable case runs to nearly half a trillion dollars. He is careful to say these are model outputs, not contractor quotes, and that the true extent of the damage is the largest unknown. An April assessment put energy-related repair costs at only $34-58 billion. But the direction of his argument doesn’t depend on the exact figure. Every month of delay makes the same repair more expensive, because the global market for specialized equipment and crews is already stretched by LNG expansions, refinery maintenance and power projects elsewhere.

The timeline is just as stark. Weighted by cost, the rebuild averages almost five years from today. Only 60% of the work finishes by 2031, and the longest-lead packages run to seven years.

The money problem comes first

The most original part of Miller’s analysis is about cash. A damaged refinery may be worth rebuilding and technically repairable, and still sit idle because the government that owns it has to pay for food imports, salaries, electricity and water first. Lost export revenue doesn’t stop those bills. When a state borrows to keep paying them, that money can’t also pay an engineering contractor.

Iraq shows the problem in practice. In July, it faced a monthly public salary obligation of about $5.96 billion with a funding shortfall of $2.52 billion. A government in that position rebuilds nothing. It pays its people, and the export capacity that would restore its revenue waits. Miller’s warning is that this trap can stop reconstruction before it starts: without engineering funds and vendor deposits, factory slots go to other customers and delivery dates slip.

The fuel gap is the global transmission belt

For the rest of the world, the damage arrives through diesel and jet fuel. The figures Miller cites are already severe. Gulf diesel net exports in August were just over a quarter of prewar levels. Combined Gulf and Russian diesel exports were 1.6 million barrels a day below February. Global oil stocks had fallen 507 million barrels since February, and global refinery throughput in August was 4.2 million barrels a day below a year earlier.

Looking forward, Miller’s severe case assumes a shortfall of at least 3 million barrels a day of diesel and jet fuel, every year for five years. That’s about 1.1 billion barrels a year and 5.5 billion barrels over the period. He is explicit that this is a deliberate stress test, not a forecast, and that a faster-recovery path closes the gap by the fourth year. But the stress case is a plausible one. Restored capacity can be absorbed by refinery outages, deferred maintenance, recovering demand and delivery bottlenecks. Damaged refineries don’t come back at full capacity on the first day.

Inventories cannot fill a gap of that size for that long. Five and a half billion barrels is far beyond any country’s emergency stocks, which is why drawing down Europe’s reserves now, under pressure from Washington, only buys weeks. Without enough new supply, the balance can close in only one way: by using less fuel.

How the shortage reprices everything

The economic damage extends well beyond the missing barrels. When supply falls short, buyers bid for the marginal cargo, and that bid sets the price for all the fuel still being bought. Miller’s illustration: a $40-a-barrel premium across 10 million barrels a day of purchases adds $146 billion a year to fuel bills. Applied only to the 3 million missing barrels, it would add $43.8 billion and badly understate the real cost.

Scarcity also reprices credit. At $150 a barrel, a buyer purchasing 1 million barrels a day needs $2.25 billion to hold 15 extra days of inventory, and $3 billion at $200. Longer voyages tie up more fuel and more money in transit. A supplier can have the barrels while its customer can’t get a letter of credit. And a cargo that wins a bidding war for one country leaves another short. Competition redistributes the shortage before it eliminates it.

Who absorbs the shock

Diesel carries the crisis into the real economy. It runs road freight, farm machinery, mines, construction fleets and backup generators, none of which can switch fuels quickly. Higher diesel costs pass straight into freight rates and food prices, and when diesel isn’t available at any price, activity simply stops. Jet fuel carries the shock into aviation: higher fares, fewer routes and higher air cargo surcharges. Kerosene hits the households with the least room to adjust, in countries where it is still used for heating, cooking and lighting.

Miller’s regional assessment follows the money:

• Europe competes for replacement diesel and jet cargoes while running its refineries close to their limits.
• South and Southeast Asia face higher import bills, currency pressure and greater need for trade credit.
• Africa and smaller importers are the most vulnerable. Tenders fail, credit lines run out, and small cargoes become uneconomic long before global stocks are exhausted.
• The United States and other Atlantic suppliers face export demand competing with their own diesel needs, with refineries running so hard they have little tolerance for outages.

The ultimate balancing mechanism is demand destruction: freight deferred, low-margin factories idled, flights cancelled, and poorer importers losing every bidding contest. Miller warns against mistaking that for recovery. Lower consumption caused by rationing through price or credit is not a repaired energy system.

Case study: Europe

Europe shows what Miller’s framework looks like in practice. The continent burns about 5 million barrels of diesel a day, fuel for the trucks that move its goods, the tractors that plant its crops and, as winter approaches, the boilers that heat millions of homes.

How much does Europe produce, and how much does it import? Running flat out, EU refineries can produce roughly 4.5 to 5 million barrels a day of diesel and gasoil, and they are already operating close to their maximum. That leaves Europe roughly 85-90% self-sufficient at best. The remaining 10-15% comes from imports, and that margin sets the price for the entire market. Kepler puts the EU’s diesel imports from outside the bloc at about 580,000 barrels a day this year. Britain, which lost much of its refining capacity over the past two decades, is far more exposed: it imports more than half the diesel it uses.

The origin of those imports has changed dramatically. Russia was long Europe’s largest outside supplier until the EU embargoed Russian diesel in 2023. The Gulf filled much of the gap, until the war cut it off. Since March, the United States has supplied more than half of Europe’s diesel imports, and more than two-thirds in August and September. Europe has traded dependence on Moscow for dependence on Washington, and Washington has just shown it is willing to use that leverage, threatening an export ban unless Europe released its emergency stocks.

Europe’s diesel depends on imported crude as well. Its refineries run almost entirely on foreign oil: the EU imports about 97% of the crude it consumes. But the Gulf was never Europe’s main crude supplier. In 2025, Gulf Cooperation Council states supplied only about 7% of EU crude imports, Iraq another 5.8%. Europe’s crude now comes chiefly from the United States, Norway and Kazakhstan, which together supplied nearly half of EU petroleum imports in the second quarter of 2026. The volume has held steady; the bill rose 56%. But the crude isn’t the crude Europe’s refineries were built for. Much of Europe’s refining capacity was designed around medium sour crudes such as Russia’s Urals, with conversion units that turn the heavier part of the barrel into diesel. American shale crude is light and sweet. It refines readily into gasoline and naphtha, but it yields proportionally less diesel and jet fuel, the very products Europe is short of. As Miller notes, sour crude isn’t uniquely required to make diesel; the replacement barrels work, but not at the same yield or cost. The Gulf supply Europe really lost was finished diesel from Gulf refineries, and that is what the United States has replaced. The result is a double dependence: Washington is now Europe’s largest supplier of both the crude its refineries run and the diesel they can’t make. Even the non-American barrels carry risk. Most Kazakh crude reaches Europe through a Black Sea terminal at Novorossiysk, on Russian soil, a route that has already been hit by Ukrainian drones.

How long can Europe store diesel? This is where Europe’s apparent cushion turns out to be thinner than it looks. Unlike crude oil, which can sit in salt caverns for decades, diesel degrades. Under ideal conditions, conventional ultra-low-sulfur diesel can typically be stored for six to twelve months. With stabilizers, biocides and well-managed tanks, that can be extended to 18 to 24 months. Oxidation forms gums and sediment, water collects, and microbes grow in the fuel.

European diesel has an added problem. The EU standard, EN 590, allows up to 7% biodiesel in road diesel, and biodiesel oxidizes faster than petroleum diesel. Concawe, the European refiners’ research association, recommends a maximum storage time of six months for biodiesel and current blends containing it. Strategic stockholders can extend that by holding biodiesel-free product, but even then the reserve has to be rotated, sold into the market and replaced with fresh fuel on a cycle of a year or two.

That changes what Europe’s reserve really is. EU countries and Britain held about 52 million tonnes of gasoil and diesel in June, including nearly 38 million tonnes of emergency reserves, roughly two months of consumption. But a diesel reserve is not a stockpile Europe can fill once and forget. It is a stock that must be continually turned over, which means continually bought, and bought in the same tight market Miller describes. Every barrel released now to satisfy Washington has to be replaced later, at a higher price, from suppliers who are already short. And because diesel degrades, Europe can’t solve the problem by buying extra while it’s cheap and holding it for years. A reserve with a shelf life of a year or two cannot cover a structural deficit that Miller’s severe case puts at five years.

The conclusion for Europe is stark. It produces most of its own diesel but has no spare refining capacity. It depends on imports for the margin that sets prices, and those imports now come mostly from a single supplier that has shown it will use them as leverage. And its emergency reserve is both perishable and finite. In Miller’s terms, Europe is one of the buyers most exposed to the marginal cargo, and the least able to wait out a five-year shortage.

The implications for the global economy

Put together, Miller’s analysis describes a world economy facing a prolonged supply shock, not a temporary one. Fuel costs feed into nearly everything, so central banks fighting the inflation this crisis has already produced will face pressure for longer than they expect. Emerging-market importers face a combination of high fuel bills, weak currencies and tighter credit that has historically produced debt crises and unrest. And the reconstruction itself will absorb capital, equipment and specialist labor that would otherwise build new energy supply elsewhere, so the shortage may delay the investment needed to end it.

Miller’s strategic conclusion is the one policymakers least want to hear. Ending the conflict removes one source of disruption. It does not repair the energy system, which requires a separate sequence of financing, engineering, manufacturing, construction and commissioning that will take years. Until that is done, reliable fuel and the cash to buy it will determine which economies absorb the burden. Neither will be distributed evenly.

Latest videos

By John J. Mearsheimer | October 4, 2026

The Trump administration and its supporters – including the Wall Street Journal editorial page – are working overtime these days to spin the news around the Iran war to make it appear that the US is winning and Tehran had better submit to Washington’s demands before it is wrecked, maybe even “annihilated.” Indeed, Trump is preparing the option of bringing the military hammer down on Iran after the midterm elections if Tehran has not surrendered by then.

In effect, Trump and his supporters are waging a “maximum pressure campaign” against Iran in the mainstream media.

This campaign is sure to fail. If anything, it reflects the Trump administration’s desperation. The president started a war the United States was bound to lose, and there is little he can do now to change that basic fact.

Trump’s propaganda campaign has two dimensions – one economic and the other military.

First, the administration argues that Iran is being economically strangled by the US naval blockade coupled with Operation Economic Outcast, the strategy announced by Treasury Secretary Scott Bessent on 24 August 2026. At the same time, it maintains that oil is once again flowing out of the Gulf at rates not far below those that prevailed on 27 February 2026. The implications are obvious: the economic punishment being inflicted on Iran will force it to capitulate soon, while the US economy – and the international community more generally – is well on its way to recovery.

Second, the US is now building up its military forces for a massive military strike after the mid-term elections, when Trump will be free of electoral constraints. This growing threat of a devastating US attack, coupled with the economic pain being inflicted on Iran, is designed to get Tehran to quit now, before its situation becomes even worse.

There are huge problems with this strategy. It sounds persuasive when the mainstream media dutifully purveys it, but it falls apart when one looks closely at what is actually happening.

Consider the military dimension. The headlines say the US is sending 10,000 additional troops and a third aircraft carrier – the USS Theodore Roosevelt – to the Persian Gulf region, creating the impression that Iran will soon be confronting three American carriers. Moreover, the additional troops – on top of the roughly 50,000 US troops already in the region – are portrayed as evidence that Trump is seriously considering putting boots on the ground.

The aircraft carrier story, however, is quite different from what the headlines suggest. The Roosevelt is reportedly being sent to replace the USS George Washington, while the supposed third carrier, the USS George H.W. Bush, has already left the Middle East and is now in Thailand. Thus, there is presently only one carrier in the region. Indeed, this is the first time during the war that the US has only one carrier in the Middle East, and it is difficult to imagine that there will be more than two – if even that many – after the midterm elections.

The larger problem is that the Iran war is severely straining the US Navy. Its senior leaders warn that the current operational tempo is not sustainable indefinitely. Carriers and other warships are being rotated through extremely long deployments, which cause significant maintenance and readiness problems that will have to be addressed at some point. This problem is compounded by the fact that US ships have lost access to nearby logistics facilities and increasingly depend on a supply chain that reaches back to Diego Garcia, which is about 2,500 miles from the Persian Gulf.

But even if three carriers are available to strike Iran, what could they accomplish in a renewed air campaign that the US and Israel could not accomplish together during the failed 40-day bombing campaign between 28 February and 8 April 2026? Some might argue that the US could finally destroy Iran’s oil infrastructure. The problem, however, is that Iran retains a second-strike capability and could retaliate by wreaking havoc on the oil infrastructure of the GCC states. One shudders to think what the consequences would be for the international economy.

On top of all this, the US faces a serious shortage of high-end weaponry, which is one of the main reasons it ended the 40-day bombing campaign and has shied away in recent weeks from engaging in tit-for-tat bombing exchanges with Iran. One would think that the shortage of critical munitions – both for striking Iran and defending against Iranian retaliation – would limit the scope and intensity of any renewed strategic bombing campaign, thereby reducing its chances of success.

Regarding ground forces, simply counting the number of U.S. military personnel in the Middle East is misleading when assessing the possibility of putting boots on the ground. What matters most in a ground war is the number of troops in actual ground-combat formations. I estimate that, of the roughly 50,000 U.S. military personnel already stationed in the region, about 5,000 belong to such formations: roughly 2,200 Marines and sailors in the 11th MEU, 2,000 soldiers from the 82nd Airborne, and possibly another 800 Army personnel in Kuwait associated with Task Force Spartan. Of the roughly 10,000 additional personnel now being sent to the region, another 2,200 belong to the 13th MEU. Most of the remainder are sailors assigned to the Theodore Roosevelt carrier and its supporting warships. Thus, given present deployment plans, I estimate that by late November the United States will have just under 7,500 personnel in ground-combat formations in the Gulf region—roughly 4,400 in the two MEUs and 2,800 Army personnel.

There is no way a ground force that small provides a promising option against a country with Iran’s population and geography. Even tripling that number to roughly 23,000—which is highly unlikely—would not fundamentally alter the problem. Retired Army General Barry McCaffrey estimates that securing the Strait of Hormuz would require roughly 150,000 troops and three to six months of fighting. For comparison, Russia invaded Ukraine in February 2022 with roughly 190,000 military personnel, and that force proved insufficient to hold much of the territory Russia initially captured. Iran has more than twice the population Ukraine had at the beginning of the Russian invasion, and its geography is considerably more forbidding for an invading army.

Simply put, the United States has not assembled anything remotely resembling the ground force required for a large-scale invasion of Iran. Indeed, from Tehran’s perspective, an American decision to launch such an offensive with anything resembling the forces presently available would present Iran with an opportunity to fight the United States under exceptionally favorable circumstances.

At the risk of beating a dead horse, two further points are in order. First, given how unpopular the Iran war is with the American public, there would almost certainly be a huge uproar if large numbers of US soldiers began coming home in body bags. Second, how are the Marines, who are aboard amphibious assault ships, supposed to land on Iranian territory if the missile and drone threat from Iran is forcing the US Navy to keep those large and vulnerable ships far from the Iranian coast?

Let’s turn to the economic dimension. There is no question that the US is doing great damage to Iran’s economy and inflicting enormous hardship on the Iranian people. But that has been true for a long time. The key question is whether that punishment can coerce Iran into surrendering to American demands.

There is no evidence that Iran is caving in to American pressure, and there are three reasons to doubt that it will. First, it is exceedingly difficult to find a case in the historical record in which an economic blockade by itself caused the target state to surrender. Second, Iran sees the US and Israel as existential threats to Iran – hardly surprising given the genocidal language Trump has used when talking about Iran – and states that believe their survival is at stake are exceptionally difficult to coerce. Third, Iran has a formidable escalation option if the economic pain becomes too great: it can attack the oil and gas infrastructure of the Gulf states and Israel, as well as their highly vulnerable desalination plants.

In short, it is difficult to see economic pressure alone forcing Iran to accept Trump’s terms. That is probably one reason the United States is once again talking about using military force. But, as I argued above, that option holds little promise of producing a favorable outcome.

Finally, there is no question that more oil is flowing out of the Gulf today than was the case in early September. But both Iran and the Houthis are working hard to reverse that trend. Iran is attacking US-escorted tankers on a daily basis, while the Houthis are targeting vital oil infrastructure inside Saudi Arabia. Moreover, despite the increased flow of oil out of the Gulf, gasoline prices remain very high, and a host of other economic problems show no signs of easing anytime soon, including high diesel prices, persistent inflation, elevated mortgage rates, and dangerously high bond yields across much of the West.

All of this is to say that the Trump administration has powerful economic incentives to shut this war down as soon as possible. Indeed, it would hardly be surprising if there were a growing sense of desperation behind closed doors among Trump and his advisers.

This, of course, helps explain why the Trump administration and its allies are waging a media campaign designed to persuade Iran that its days are numbered and that it had better concede to American demands before it is too late. The facts, however, tell a different story. The success of this strategy therefore depends on Trump being able to bamboozle the Iranians into believing that Godzilla is closing in on them. There is little reason to think Tehran will be hoodwinked.

By Kamran Yeganegi | The Cradle | October 3, 2026

Saudi oil tankers are loading again at Yanbu, less than three weeks after drone strikes shut down the East–West Pipeline that supplies the Red Sea port. On 24 September, crude was reported to be flowing west again, although no ship had yet loaded a cargo.

By 29 September, trade sources and shipping data showed that loadings had resumed. The interruption and recovery have offered a costly demonstration of what an oil route around the Strait of Hormuz can, and cannot, do.

Yanbu, Ceyhan and Baniyas sit at three very different points on that spectrum.

Yanbu has a 1,200-kilometer pipeline in operation and an established export terminal. Ceyhan is already loading Iraqi crude, though current Iraqi flows are measured in hundreds of thousands–not millions–of barrels a day. Baniyas could eventually give Iraq a major Mediterranean outlet, but for now it remains a project that depends on new infrastructure and financing, political agreements, and protection across two fragile states.

The comparison begins with the oil that reaches ships during a crisis. Pipeline capacity matters only as much as the pumps, terminals, and security along the route allow.

Yanbu’s exposed lifeline

Saudi Arabia’s 1,200-kilometer East–West Pipeline has a nominal capacity of 7 million barrels per day (bpd). Before the September strikes, reported flows through the system were already below that capacity. Three pumping stations were damaged, and the shutdown halted crude loadings at Yanbu. Riyadh blamed Iraqi resistance factions; the Islamic Resistance in Iraq denied responsibility for the strike. Baghdad condemned the strike and opened an investigation.

Restarting the line on 22 September did not immediately restore exports. Crude had to reach Yanbu and replenish stocks before tankers could load. Two vessels scheduled for 23 September left without cargo, according to shipping data cited by Reuters. Loadings resumed days later, after a strike on pumping stations hundreds of kilometers inland had kept the port idle.

Yanbu was moving between 2 million and 2.65 million bpd when tankers returned. Traders expected flows to rise to 3 million to 4 million bpd, but a return to the pre-attack level of roughly 5.5 million bpd could take another month.

The voyage has become more expensive, too. Quoted war-risk premiums for Saudi-linked tankers calling at Yanbu have risen to around 3 percent of vessel value, up from below 1 percent in early July. For a $100 million tanker carrying two million barrels, a 3 percent premium adds roughly $1.50 to the cost of each barrel, before fuel or freight. Yanbu may bypass Hormuz, but insurers are charging heavily for the detour.

Yanbu still leaves Asia-bound cargoes exposed to the southern Red Sea and Bab al-Mandab. Attacks and warnings by Yemen’s Ansarallah-aligned army have made passage through those waters more costly and uncertain. Heidmar Maritime Holdings chief executive Pankaj Khanna has highlighted another problem for shipowners: the Red Sea lacks the US naval protection sometimes available around Hormuz.

Saudi Arabia has escaped one strait only to send its oil toward another. Cargoes bound for Europe can head north through the Red Sea, but Asian customers require the southern passage. That split limits how freely Riyadh can reroute shipments when risks around Bab al-Mandab rise.

Ceyhan’s southern supply problem

Ceyhan is already loading Iraqi crude, though its northern supply remains small compared with the volumes exported through the Gulf. Flows stood at roughly 200,000 bpd in mid-September, down from about 250,000 bpd before the war. Baghdad’s challenge is getting oil from its vast southern fields into that northern export system.

Iraq has begun moving southern oil north by road. A September trial sent 209 tanker trucks carrying about 38,000 barrels to Kirkuk over two days. Basra Oil Company later said around 250,000 bpd was being transported north for onward export through Ceyhan.

Truck convoys are useful during a crisis, but they cannot replace a high-capacity pipeline. The first trial averaged about 182 barrels per truck. Moving 250,000 barrels at that rate would require roughly 1,370 loaded truck trips, with vehicles returning south for the next run. Road conditions and loading points impose additional constraints. Expanding Ceyhan therefore depends less on the Turkish terminal than on a reliable south-to-north connection within Iraq.

Energy analyst Richard Bronze of Energy Aspects has warned against treating bypass infrastructure as a substitute for Hormuz altogether. “The idea that the strait will stop mattering or become worthless is pure rhetoric,” he told Arab News. For Iraq, the road to Ceyhan provides an outlet. It cannot yet carry southern crude at a scale that would loosen Baghdad’s reliance on the Gulf.

Baniyas across the war map

Baniyas is the most ambitious option because it could reshape Iraq’s export map. Iraq has approved preliminary studies comparing routes including Basra–Haditha–Kirkuk–Ceyhan and Basra–Haditha–Baniyas, with a consortium that includes Chevron, TI Capital, and Qatar’s UCC. Chatham House estimates the wider Iraq–Syria network at around $15 billion, with a proposed initial capacity of roughly 2 million bpd and construction potentially taking about four years.

Syrian officials have given a somewhat shorter timeframe. Syrian Petroleum Company chief Youssef Qablawi said in August that the Haditha–Baniyas project could take around 30 months to three years after final agreements and engineering work. Even the shorter timetable places Baniyas beyond the present shipping crisis, assuming agreements and funding are secured.

The route’s security problem is also more complex than a line drawn on a map. A pipeline from Haditha toward Syria would traverse western Iraq, including areas where ISIS cells remain a concern, before entering eastern Syria, where state authority remains uneven and armed groups continue to operate.

Chatham House noted in September that armed actors, including ISIS, have attacked oil wells and tanker trucks in eastern Syria, while Iraq’s fragmented security system leaves multiple actors capable of obstructing or extracting rents from infrastructure.

Israel’s strikes and military presence in Syria would loom over any pipeline to Baniyas. There is no evidence that Israel plans to attack the project, but a route through Syrian territory would depend on security guarantees Damascus cannot yet provide.

Baniyas itself is more functional than the word “reconstruction” sometimes suggests. Iraqi-origin fuel oil has already been trucked through Syria and handled at the terminal, demonstrating that a commercial logistics chain can operate.

The existing trade gives the project a foothold, but handling trucked fuel oil is far removed from loading 1–2 million bpd of pipeline crude. Storage, pumping systems, berths and terminal reliability would have to be scaled accordingly.

The old Kirkuk–Baniyas line was badly damaged, and the planned network may take a different route. Existing truck traffic therefore offers little indication of the cost or the construction work required to handle sustained crude flows.

Sanctions are another constraint, though less severe than under Bashar al-Assad. The EU lifted its broad economic sanctions on Syria in 2025 while retaining security-based and targeted measures, and the US rescinded Syria’s designation as a State Sponsor of Terrorism in August 2026. That lowers, but does not eliminate, banking, insurance, due-diligence and counterparty risk for a multi-billion-dollar project.

Iran’s leverage runs through Iraq

The geopolitical logic behind Iraq’s western routes is often framed as a means to reduce Iranian leverage over Hormuz. Iran’s influence in Iraq also extends through energy trade, political networks, and armed factions embedded in Iraq’s fragmented security order.

At the same time, Tehran does not treat Iraq exactly as it treats other Gulf states. Mostafa Khoshcheshm, a political commentator on Iranian television, told Al Jazeera in August that Iran viewed Iraq as a “friendly state” and had allowed some Iraqi oil tankers to pass Hormuz.

He said Baghdad had “always stood up to the United States.” His view is one Iranian reading of Baghdad’s position. An Iraqi move toward Gulf- and US-backed western export corridors would also alter the economic leverage surrounding it.

An expansion through Baniyas or Ceyhan would give Baghdad more room to negotiate export terms without severing its ties to Iran. Gulf investment would bring new transit partners and sources of capital, though it would not automatically shift Iraq’s political alignment.

The security question cuts both ways. Iran-aligned resistance factions could be a source of vulnerability if they viewed a corridor as threatening their strategic interests. ISIS remnants and local power brokers could also obstruct it, while transit-state disputes might halt flows without an attack. Yanbu’s damaged pumps are a warning about the vulnerability of a land corridor.

Iraq’s other proposed exits face obstacles of their own. Reviving the dormant Iraq Pipeline through Saudi Arabia (IPSA) would require Riyadh’s agreement and extensive repairs. The Basra–Aqaba route would have to be built across western Iraq and Jordan.

Egypt’s SUMED pipeline is already operating, but Baghdad has no direct way to feed Iraqi crude into it. For now, the southern Gulf terminals remain Iraq’s only outlet capable of handling exports at scale.

What reaches the tanker?

As of early October, Yanbu can move the largest potential volume because the pipeline and port already exist, but its 7 million bpd nameplate figure overstates the immediately exportable capacity, while Red Sea shipping costs and the Bab al-Mandab remain concerns.

Ceyhan can now load Iraqi crude, but expansion depends on resolving Iraq’s internal north–south logistics. Baniyas offers the largest geopolitical transformation, but it remains years, billions of dollars, and security agreements away from moving crude at scale.

Hormuz remains central to the region’s oil trade even as states invest in alternatives. Yanbu, Ceyhan and Baniyas each shift some exposure from the strait to pumping stations, desert corridors, insurers or transit governments. Their value will be measured by the barrels reaching ships when the Gulf route is under threat, not by the capacity listed in a project plan.

By Robert Inlakesh | MintPress News | October 2, 2026

Scrambling to halt the ongoing offensive of Yemen’s Armed Forces, Israel and Saudi Arabia have strengthened ties through a joint covert campaign aimed at salvaging what remains of their supremacy in the Red Sea region. Tel Aviv and Riyadh’s losses of key military strongholds in Yemen’s Western coast, has ushered in a new era of soft-normalisation.

Saudi Arabia has carried out hundreds of airstrikes in Yemen, resulting in thousands of casualties since its renewed bombing campaign began this July. It now heavily relies on Israeli targeting intelligence backing in order to conduct dozens of strikes across Yemeni territory on a daily basis, including attacks on civilian market places and residential buildings.

Meanwhile, Israeli officials heaped praise on Riyadh this Wednesday for facilitating the first ever commercial flight between Israel and Saudi, following the Kingdom’s intervention to aid Israeli passengers on-board a Flydubai plane that was forced to undergo an emergency landing.

In contrast, the Kingdom of Saudi Arabia (KSA) initiated the renewal of the Saudi-Yemen war, by bombing the runway of Sana’a International Airport in order to prevent an Iranian civilian jetliner from landing inside the country. This measure was taken to enforce a long-standing aerial blockade on Yemen, while Israeli aircraft freely use Saudi airspace.

Press TV – October 4, 2026

Iran’s Foreign Ministry spokesman, Esmaeil Baghaei, warned on Sunday that any future use of regional countries’ territory to attack the Islamic Republic will provoke a different and decisive response, stressing that Tehran expects its neighbors to uphold the principle of good neighborliness.

Speaking at a press conference in Tehran, Baghaei said countries in the region—especially those that placed their facilities at the disposal of the United States and the Zionist regime during the recent war—must reconsider their actions.

“If in the future we witness another aggression by America and the Zionist regime and their soil is used to attack Iran, certainly the response will be different,” Baghaei said.

He emphasized that all countries in the region have had a bitter experience with US military presence and intervention, adding: “We are eternal neighbors.”

Baghaei said Iran has quickly and clearly conveyed its grievances to regional countries, particularly those that provided territory and facilities to the US and Israeli regime during the military aggression.

He stressed that these countries bear international responsibility for participating in aggressive actions.

He noted that on the sidelines of the UN General Assembly, Iranian officials held good meetings with almost all southern Persian Gulf countries.

The spokesman also addressed the presence of the Israeli prime minister in the UAE, warning that the Zionist regime is seeking to sow sedition in the region.

He called on neighboring states not to allow their facilities and territory to be abused by parties that have shown no regard for regional security and prosperity.

UNGA participation a success

Baghaei described Iran’s participation in the 81st UN General Assembly as one of the country’s most successful international appearances.

A small but highly productive delegation, led by President Masoud Pezeshkian, attended the summit. He said meetings with counterparts, think tanks, and media helped explain Iran’s positions and logic on regional and global issues.

Responding to a US media claim that two members of the Iranian delegation were expelled from the US, Baghaei dismissed it as “pure lies.”

He said Iran’s travel, entry, and exit were fully notified in advance. One diplomat left New York due to US pressure, while the others departed according to the pre-arranged schedule.

“This is an admission by the host government that it violated its obligations,” Baghaei said. “It proves they are not a worthy host for the United Nations.”

He added that the US, having failed to prevent Iran’s participation and isolate Tehran, resorted to such “cheap news-making.”

Seven-day plan

Baghaei said Iran’s seven-day plan was the latest initiative to keep the diplomatic path open, and the world witnessed Iran’s responsible and goodwill-based approach.

He noted that previous experiences show the American side is not committed to diplomacy and has always shirked its obligations.

“That is why, while we speak of diplomacy, we will decisively defend Iran’s national interests and security. Our armed forces are vigilant, powerful, and ready to repel any evil.”

On US proposals conveyed via the Qatari mediator, Baghaei said they largely reflect previous US positions and specifically concern nuclear issues.

“We explicitly announced that our focus at this stage is the Strait of Hormuz,” he said.

He added that restoring security to the Strait requires concrete US steps, including stopping disruption of Iran’s commercial shipping, lifting sanctions, and ending other interventionist measures.

He said all items previously included in the Islamabad understanding, plus new ones added in recent months, must be honored.

“Sanctions imposed by America during this period must be lifted.”

UK envoy summoned over accusations

Baghaei said the British ambassador was summoned on Thursday to receive Iran’s official protest over baseless accusations linking Tehran to an alleged incident at a British airbase.

He described UK accusations against Iran as a “forward escape” because London knows Iran has demanded accountability for Britain’s participation in the military aggression.

“There is no doubt that Britain directly participated in this illegal war by providing its military bases,” he said.

He cited NATO Secretary-General Mark Rutte’s admission that bases in Europe were used during the US-Israeli aggression.

“The British government must be held accountable. It cannot escape responsibility with fabricated claims.”

US withdrawal from Iraq a ‘blessed’ step

Baghaei called the withdrawal of US forces from Iraq a very important and blessed development for consolidating Iraqi national sovereignty, and a sign of American failure.

He recalled the crimes committed during the 23-year occupation, including Abu Ghraib, and said Daesh and takfiri terrorism were products of the occupation.

“Foreign occupation creates the ground for violence, division, and insecurity,” he said. “We hope this step strengthens relations between the two countries and protects Iraq’s national sovereignty and independence.”

By Iqbal Jassat | Press TV | October 3, 2026

The departure of the final US military forces from Iraq marks a profound turning point in the modern history of West Asia.

For over two decades, the narrative of foreign intervention dictated that regional stability was impossible without Washington’s oversight. Today, that narrative lies broken.

The end of the US-led military mission is not the result of a benevolent diplomatic concession or a calculated policy shift by the Pentagon. It is, undeniably, a hard-fought victory achieved through the unyielding resolve of Iraq’s Islamic Resistance and the enduring steadfastness of its people.

Crucially, the withdrawal of American forces delivers a severe blow to the strategic calculations of the Zionist entity. For decades, Israel’s expansionist ambitions and its destabilising campaign of aggression across the region – from Palestine and Lebanon to Syria – have relied entirely on the foundational guarantee of US military backing.

Washington’s illegal military presence in Iraq served as a vital buffer and logistics corridor designed to fracture the Axis of Resistance and project power on Israel’s behalf. With the American shield removed from Iraq, the regional depth that Tel Aviv exploited to enforce its hegemony is rapidly collapsing.

The end of the US occupation severely limits the capability to isolate regional resistance factions, exposing the fundamental limits of Zionist expansionism when stripped of direct imperial protection.

The balance of power has fundamentally shifted, proving that the era of unpunished aggression across West Asia is coming to an end.

For 23 years, Iraq served as the central stage for a flawed experiment in imposed security. The 2003 invasion promised democracy and stability but instead delivered a legacy of institutional fragmentation, economic exploitation, and a vacuum that fueled regional terrorism.

In charting this path towards absolute liberation, none can deny the blueprint for true sovereignty remains Iran’s historic achievement of complete independence.

By expelling foreign military mandates and dismantling external control over its domestic wealth, Iran proved that a nation can cultivate formidable defensive and scientific capabilities entirely from within.

This self-reliant model stands as a direct contrast to the Arab Persian Gulf sheikdoms, which have long tethered their survival to American protection, effectively trading their strategic autonomy for a fragile security umbrella.

While these neighboring monarchies remain dependent on foreign bases and external guarantees, Iraq’s triumph demonstrates that genuine security cannot be imported or bought.

The reality of the past two decades, stretching from the sudden collapse in Kabul to the gradual eviction from Baghdad, proves that dependence on foreign superpowers is an inherently fragile strategy.

When foreign forces occupy bases under the guise of “protection,” they serve primary external geopolitical interests rather than the security of the host nation. The presence of these military installations frequently exacerbates regional polarization, turning host countries into potential flashpoints for broader wars they cannot control.

Iraq’s transition into a new era demonstrates a vital alternative: security is most durable when it is organically derived from national unity, localized defense capability, and regional cooperation. The resistance infrastructure that stood firm against occupation has demonstrated that an organized, highly motivated regional population can outlast the political will of an external superpower.

This moment serves as a stern warning to those Arab regimes tempted by the illusion of the Abraham Accords. Normalising ties with the Zionist entity under the pretext of economic benefit or strategic deterrence is a fatal miscalculation.

Entangling a nation’s destiny with a decaying occupation framework will neither guarantee security nor provide immunity from regional realities.

For the capitals still hosting US military bases or pursuing compromise with Tel Aviv, the message from Baghdad is clear: true stability is forged through regional integration, resistance to imperialism, and self-reliance—not through the permanent invitation of foreign militaries or treacherous pacts that betray the core causes of the Islamic world.

Most profoundly, this historic milestone radiates a powerful ray of hope to the people of Palestine, who have endured decades of devastating cruelty and brutal subjugation since the creation of Israel.

For a population resisting land theft, apartheid, and relentless military assault, the liberation of Iraq offers undeniable proof that even the most heavily funded occupation is not permanent. It demonstrates that when a people refuse to break, the architecture of oppression can be dismantled piece by piece.

The steadfastness of the Iraqi resistance serves as a direct message to the Palestinian struggle: the path of compromise is a dead end, but unyielding resistance eventually breaks the chains of tyranny.

---

Iqbal Jassat is an executive member of the Media Review Network, Johannesburg, South Africa.

Daniel Davis / Deep Dive – October 3, 2026

After two wars, Iranian lawmakers are pressing for an NPT exit. The argument now extends to whether a bomb would deter another attack.

By Fereshteh Sadeghi | The Cradle | October 2, 2026

After two rounds of US–Israeli attacks in the space of a year, pressure is mounting on Iran’s leadership to withdraw from the Nuclear Non-Proliferation Treaty (NPT). Advocates say the treaty has failed to protect Iran’s civilian nuclear program or its scientists. Their opponents warn that withdrawal could provide Washington and Tel Aviv with a pretext for another assault. The argument now reaches well beyond the Majlis.

“A big decision in the offing” is one way to describe a motion that has sat with the Iranian parliament’s presidium for months. A group of lawmakers has now issued an open statement demanding that the Supreme National Security Council and Foreign Ministry begin the formal process of withdrawal from the NPT. They also want Tehran to end voluntary nuclear commitments beyond its treaty obligations.

The lawmakers argue that the NPT and the International Atomic Energy Agency (IAEA) have failed to safeguard Iran’s right to peaceful nuclear technology. They accuse the agency of allowing information obtained through inspections to reach Iran’s enemies, exposing nuclear facilities and scientists to attack.

Their statement follows years of dispute over the agency’s access to Iranian sites and the use of its findings by western governments. They invoke Article X of the treaty, which permits withdrawal when a state decides that extraordinary events have jeopardized its supreme interests. A withdrawal would require three months’ notice to other parties and the UN Security Council.

A motion awaiting debate

In the wake of that open statement, Isfahan lawmaker Hussein-Ali Haji-Deligani revealed he and his colleagues submitted legislation on Iran’s withdrawal from the NPT months ago, and it is up to parliament Speaker Mohammad Bagher Ghalibaf to put it to debate on the parliament floor. Heji-Delogani reiterated:

“Considering enemies’ wars against Iran on two occasions, the continuation of Iran’s membership in the NPT has no use, especially after the IAEA’s Board of Governors sent Iran’s dossier to the UN Security Council. Therefore, Iran should exit from the treaty to prevent further damage.”

Other lawmakers have turned their criticism on the parliamentary leadership. Tehran representative Kamran Ghazanfari blamed the presidium for keeping the motion off the floor, an accusation aimed principally at Ghalibaf.

Ghalibaf has aligned himself with Iranian President Masoud Pezeshkian on several questions of state policy, drawing fire from former allies among the Principlists. The NPT dispute has become another point of contention between them.

Another parliamentarian, Mohammad-Reza Sabaghian, stated:

“We must use the courage that was shown and the right strategy to close the Strait of Hormuz in the discussion of withdrawing from the NPT. This is the second step that will lead to the failure of America’s plans.”

Mohsen Sani, a member of parliament’s national security commission, went further:

“In our opinion, the NPT no longer has any meaning or significance, whether we want to stay in it or leave it. When one of the NPT member states attacks another member (Iran), it means withdrawing from all these commitments and treaties that have existed in this regard. Recent pressures suggest that we should reconsider enrichment.”

The case for staying

The call for withdrawal has met resistance within Iran’s political establishment. Tehran lawmaker Mohammad Seraj sees no benefit in leaving. Unless Iran intends to build a bomb, he argues, the step would only damage its relations with friendly states.

Khorasan, a newspaper close to Ghalibaf, has criticized lawmakers for “radicalizing the political ambiance of the country and forcing the Islamic Republic to make such a sensitive decision,” describing it as “a gift to Trump.”

The outlet maintains that “any moves towards leaving the NPT give enough justification to Trump and Netanyahu for their future strikes against Iran while it alienates friends such as China and Russia who have always supported Iran’s legitimate right to a non-military nuclear program.”

Rouydad24, a news site with strong ties with the Reformist camp, lambasted lawmakers as “radicals” who “have returned with a controversial and costly prescription.”

The Reformist news site charges that “Pezeshkian’s critics have turned withdrawing from the NPT into a political slogan without considering it is a complicated matter economically, militarily and internationally.”

Where the decision rests

The debate has become a challenge for Pezeshkian, whose government has defended Iran’s continued place in the treaty. But the president is not the only voice in the room. Mohsen Rezaei, secretary of the Supreme National Security Council, has openly raised the possibility of withdrawal.

Rezaei said, “After the United States abandoned the post-war Islamabad Memorandum of Understanding, we reached the conclusion that we must change course. We have yet to take a decision on withdrawing from the treaty, because our withdrawal totally depends on Washington’s behavior.”

The senior general admits that the Islamic Republic is still committed to the late supreme leader Ali Khamenei’s religious prohibition on the use of nuclear weapons and has not changed its nuclear doctrine; however, “nobody can guarantee the future,” he elaborates.

Is Iran seeking a nuclear weapon?

In an exclusive interview with the Republican Party’s mouthpiece, Fox News, Pezeshkian flatly denied Iran is seeking an atomic bomb, adding that his country is even willing to dilute the 440-kilogram uranium stockpile purified at 60 percent and allow the IAEA’s nuclear inspectors to supervise Iran’s nuclear program.

Pezeshkian made those claims while the Islamic Republic does not allow international inspectors to visit its nuclear facilities, which were destroyed by the US and Israel during two wars in June 2025 and February-March 2026.

Pezeshkian’s assurance contrasts with Rezaei’s warning that the country’s future course cannot be guaranteed. Reports in Tehran that Supreme Leader Mojtaba Khamenei has ruled out nuclear talks with Washington remain unconfirmed; they offer no basis for treating such a ban as settled policy.

A decision above the Majlis

Iran’s NPT membership has moved from a technical and legal question into a wider argument over deterrence after the attacks on its nuclear facilities. The parliamentary bill gives that argument a public stage, but lawmakers alone will not settle it.

The final decision would be made at the highest levels of the Islamic Republic’s political and security establishment. A vote in the Majlis could put a formal stamp on a course set elsewhere, as earlier nuclear legislation did.

The 2020 Strategic Action Law to Lift Sanctions, for example, obliged the government to expand nuclear activity and restrict inspections if sanctions relief did not materialize. It sharply constrained the Rouhani administration’s room for maneuver over the 2015 Joint Comprehensive Plan of Action (JCPOA) nuclear agreement. The precedent is relevant because a bill presented as a parliamentary initiative can become a lever for policy agreed across the state’s security institutions.

For now, proposals to leave the NPT and calls to build a bomb circulate side by side. That does not establish that either has been adopted. It does show how far positions once kept at the edges of public debate have entered the argument over Iran’s security.

Lawmaker Ahmad Bakhshayesh Ardestani has advocated building a nuclear weapon first and withdrawing from the NPT afterward, “because only in that case, it can guarantee deterrence against a renewed US-Israeli aggression.”

Even Khorasan, which warns against leaving the NPT now, does not rule out an exit. Its argument is that Iran should first build and test a nuclear weapon. Until then, it says, Tehran would bear the costs of a nuclear-armed state without possessing a nuclear deterrent.

The disagreement in Iran is no longer confined to whether the country should leave the treaty. It is also about when.

RT | October 2, 2026

Yemen’s Houthis have denied targeting a power station in the city of Medina. A Saudi-led coalition earlier accused the militant group of targeting the facility supplying power to the Prophet’s Mosque – one of the holiest sites in the Muslim world.

A senior Houthi official branded the accusation a “lie” aimed at tarnishing the group’s image and reinforcing similar claims made by the coalition in the past.

On Thursday, the Saudi coalition’s spokesman, Major General Turki al-Maliki, accused the Yemeni militants of striking the Taibah electricity distribution station in Medina earlier this week in what he called a “cowardly terrorist act” and a part of an alleged broader campaign by the Houthis to “target the Two Holy Mosques.”

In mid-September, Saudi Arabia accused the Houthis of launching a drone towards the holy city of Mecca. The unmanned aerial vehicle was intercepted and destroyed, it added. The Yemeni movement’s leader, Abdel-Malik al-Houthi, dismissed that claim as a “heinous lie” in a televised address at the time, claiming Riyadh was “weaponizing lies” to advance its own agenda.

The developments have sparked concerns in Türkiye and Pakistan, which signed a joint defense agreement with Saudi Arabia in August. Speaking to the United Nations General Assembly last week, Pakistani Prime Minister Shehbaz Sharif called any “threat to the sanctity” of the Muslim holy cities of Mecca and Medina a “red line that must never be crossed.”

Ankara denounced this week’s alleged Medina attack. “Any attack targeting the sanctity, peace, and security of the Two Holy Mosques is an unacceptable affront directed at the shared sensitivities of the entire Islamic world,” the Turkish government spokesman, Burhanettin Duran, said on X on Friday. He vowed that Türkiye “will continue to stand by Saudi Arabia.”

The developments come amid the continued escalation between the Houthis and the Saudi-led coalition. Riyadh has backed Yemen’s internationally recognized government against the Houthis since intervening in the country’s civil war in 2015.

Large-scale fighting largely subsided after a UN-brokered truce in 2022, but the conflict erupted again this summer after an airport in the Houthi-controlled Yemeni capital of Sanaa was bombed to prevent a returning Houthi delegation that had flown to Iran from landing.

The Cradle | October 2, 2026

G7 states will release up to 100 million barrels of emergency oil and diesel stocks over the next four months, French President Emmanuel Macron announced on 2 October, bowing to US pressure to tame diesel prices driven to record highs by the war on Iran.

The release will be coordinated by the International Energy Agency (IEA), and comes the same day as European Commission spokesperson Anna-Kaisa Itkonen said the EU “fully” rejected US threats to halt diesel exports unless Europe drew down more of its reserves.

“We fully reject any ban on diesel. A ban would not be beneficial to anyone. It would undermine our trust in the United States as a reliable partner,” she said.

She added that the EU Oil Coordination Group, due to meet on 15 October, could convene sooner if necessary.

Macron, who currently chairs the G7, had also spoken out against any export ban in a call with US President Donald Trump earlier that day, with his office saying he urged G7 states to act together “without export restrictions.”

The diplomatic scramble followed a push a day earlier from US Treasury Secretary Scott Bessent, who urged European states to speed up delivery on their existing reserve commitments.

“American farmers, truckers, and businesses should not be left carrying the burden of a global diesel shortage,” he wrote on social media.

Trump threatened the diesel export ban earlier this week, a move EU trade chief Maros Sefcovic warned would have “dramatic consequences for our economic performance.”

The US has threatened to starve France and Germany of diesel unless they release their emergency diesel stocks, with a European source saying Washington is pressing the EU to hand over 120 million barrels within six months.

China has also suspended refined fuel exports for October to rebuild its own depleted reserves, according to Reuters, further tightening a global market already strained by the US war on Iran.

Europe’s reliance on US fuel, which deepened after it banned Russian imports and the US-Israeli war on Iran cut supplies from West Asia, has cost the bloc more than $113 billion in extra energy payments this year, without it receiving “one extra molecule of gas or oil,” according to European Energy Commissioner Dan Jorgensen.

Meanwhile, Washington is also lending energy companies another 40 million barrels from its Strategic Petroleum Reserve (SPR).

The reserve has already fallen to its lowest level since 1982, and releasing the full amount would drag it below the minimum set under federal law.

RT | October 2, 2026

Washington is sending more warships and troops to the Middle East as US President Donald Trump is considering the resumption of large-scale strikes against Iran after the midterms, AP has reported.

Trump told reporters on Thursday that he has “to make a decision: either Iran signs a very fair deal, or it won’t exist any longer.” In a Time magazine interview published the same day, he said that new attacks on the Islamic Republic were “possible” after the US election on November 3, but declined to reveal any further details.

In its article on Thursday, AP said that a third aircraft carrier and some 9,000 additional service members, including 7,000 sailors and 2,000 marines, are currently on their way to the area of the conflict with Iran.

It would increase the US military presence in the Middle East to more than 20,000, which is “an unusually high number,” it stressed.

The forces on the move include the USS Theodore Roosevelt carrier strike group, with the cruiser USS Chosin and the USS Makin Island amphibious readiness group, which includes the USS John P. Murtha and USS Anchorage amphibious landing ships, an unnamed American official told the agency.

With the USS George H.W. Bush and the USS George Washington already being deployed, three US aircraft carriers could be in the Middle East simultaneously as early as the end of October, according to the source.

Washington last had as many carriers in the region in April at the height of the American-Israeli missile exchanges with Iran. Before that, it happened back in 2003.

Axios reported on Friday, citing a US official, that it wasn’t yet clear if the USS Theodore Roosevelt would join the two carriers or replace one of them.

Washington also sent two additional Patriot missile batteries to protect oil and gas facilities in Saudi Arabia and Qatar in recent weeks, according to Axios. It was done to make it easier to get permission from Riyadh to use Saudi airspace for possible strikes on Iran, the outlet explained.

When asked by Time if the conflict with Tehran would harm the Republican Party’s chances in the midterms, Trump first acknowledged that “it’s possible,” but then said that “it should help, because Iran will not have a nuclear weapon.”

A poll by AP-NORC Center for Public Affairs Research, which was published on Thursday, suggested that some 70% of Americans disapprove of the war with Iran.

After the initial US-Israeli attack on the Islamic Republic in late February, Trump claimed that the conflict will be over in a few weeks, but it’s still ongoing, with the diplomatic process remaining in a stalemate.

Trump told Time that he rejected Iran’s latest peace proposal, made during the UN General Assembly last week, because “things that I wouldn’t have approved a year ago I wouldn’t have today.”

In September, Iranian Parliament speaker and top negotiator Mohammad Bagher Ghalibaf warned that further aggressive actions by the US will be met with “faster, heavier and more painful” retaliation by Tehran.

“The Americans have surely understood that the era of proportionate responses has come to an end and our recent strikes against aggressor bases were only a start,” Ghalibaf said.

Daniel Davis / Deep Dive – October 1, 2026

By Jamal Kanj | MEMO | October 1, 2026

Since the start of the latest made-for-Israel war, Donald Trump and his surrogates have repeatedly promised Americans that it would be a few weeks and oil prices would soon crash below prewar levels. Instead, it was every promise that crashed. When those promises failed to materialize, the message shifted: the war is worth the price to stop Iran from becoming a nuclear power.

But what if Iran did become a nuclear power? How would that pose a greater threat to the U.S. than North Korea or Russia already do? Or is the real concern not a risk to America, but a challenge to the regional hegemony of a foreign nuclear power, Israel?

For more than thirty years, according to Israel’s fiction, Iran was on the verge of becoming a nuclear-armed state. That fictitious deadline has come and gone repeatedly, yet Benjamin Netanyahu has been recycling  the same lie since 1992. The Israeli lies and deceit persisted even though, unlike Israel, Iran’s nuclear program was subject to strict international monitoring.

Still, Trump, at Netanyahu’s urging, walked away from an agreement that imposed some of the most stringent and verifiable restrictions ever placed on a country’s nuclear program. Now Americans are being asked to pay in blood and billions of dollars for abandoning a diplomatic agreement that had kept Iran’s nuclear program under unprecedented international scrutiny and helped contain the very threat now being used to justify the war.

The hypocrisy is impossible to overlook. Iran has been subjected to relentless demands for transparency and inspections, while Israel’s own nuclear arsenal, built in part with materials stolen from the U.S., remains shielded from any international inspection.

Yet somehow Iran’s ambitious know-how is the existential nuclear threat, not Israel’s nuclear bombs.

American consumers have long been the victims of a disinformation campaign, and now they are being forced to pay the price for a war sold to them on false pretenses. The most recent misinformation claiming the Strait of Hormuz is open and oil is flowing. The president said it on Fox, and the outgoing White House press secretary told Fox & Friends that the U.S. is essentially controlling the strait and that it remains open. These claims leave only two possibilities: either the statements are outright lies, or oil companies are gouging the consumer.

The UK Maritime Trade Operations Centre reported that commercial traffic through the strait remains about 75 percent below pre-conflict levels. It also tallied dozens of projectile strikes on vessels in just the past two months.

Three quarters less traffic is not a sign of an open strait. Shipowners and insurers know this, so do traders and so the climbing numbers at the gas pump.

The market has already made its judgment, and every American who fills a tank can see it. It is past time for Washington to stop lying.

For the average consumer, the pump is where it felt. Regular gasoline was below $3 a gallon before the U.S. was dragged into another one of made-for-Israeli wars. Families are paying more to get to work, truckers are paying more to move goods, and those costs show up in the price of groceries.

Meanwhile, American oil companies are pumping at record levels. Exxon and Chevron are producing record volumes from oil fields on American soil, thousands of miles from the Strait of Hormuz. Their production costs have not changed. What has changed is Israel’s war surcharge consumers are being forced to pay.

Chevron reported the largest quarterly net profit in its history, $12.1 billion. Exxon made $14.5 billion in the same quarter, about $160 million a day. Refining has become more lucrative. Gross refining margins more than doubled, soaring from a typical $20 crack spread to as much as $60.

Meanwhile, Trump dangles a pie-in-the-sky deal with Venezuela as a distraction from consumers’ mounting anxiety, while his administration stands by as oil companies exploit overseas crises for record profits. These companies have no reason to lower prices when war has handed them a windfall. This is what a war of choice looks like on the ground: American consumers are forced to pay the price, while oil executives in Texas turn a crisis into a lucrative business opportunity.

American consumers deserve more than false promises. If the Strait is open, then oil prices should be coming down. If it is not, then stop treating consumers as an audience whose emotions must be managed rather than citizens entitled to hear the truth. Since the war started, every week, like millions of Americans, I fill my gas tank, and the Israeli war tax is higher than it was the week before.

No, Mr. President, that is not “worth the price” to pay for a war fabricated in Israel, a repeat of the made-for-Israel war in Iraq 23 years ago.

This is not a war to end Iran’s fictitious nuclear power. It is a war paid for by taxpayers’ money and American blood to ensure that Israel remains the only absolute nuclear power in the Middle East.

By Robert Inlakesh | Al Mayadeen | October 1, 2026

US President Donald Trump has officially announced a formal withdrawal of American troops from Iraqi territory, yet the economic, social and diplomatic hold on the nation remains. If US troops are going to be permanently booted out, it necessitates an Iraqi national resistance that is capable of operating as a guarantor.

On October 21, 2011, former US President Barack Obama announced that the United States had withdrawn its remaining occupying forces from Iraqi territory. Then, only two and a half years later, the US re-deployed its forces back into the country under the guise of fighting the Daesh insurgency.

Iraq, having experienced a regime change operation followed by a brutal occupation and nationbuilding project, was left incapable of defending itself from the ISIS takeover, let alone pushing back against the United States redeploying its forces. First, the Obama administration deployed forces that it said were there to protect its diplomatic staff, in addition to advisors to the Iraqi armed forces.

Later it would expand this presence, expanding its “Operation Inherent Resolve” into Syrian territory, providing it with supply routes and a platform from which to de facto occupy northeastern Syria. The US operation in Syria and Iraq helped them eventually achieve their longtime goal of regime change in Damascus by depriving the Syrians of their access to the nation’s oil resources and fertile agricultural lands.

In 2020, Donald Trump had agreed to remove his forces from Iraqi territory, re-iterating this pledge during a meeting with then Iraqi PM Mustafa al-Kadhimi. The following year, former President Joe Biden then declared the official end of his nation’s combat mission inside the country. Only now, in 2026, and after extensive attacks on US military facilities by the Islamic Resistance in Iraq, has the pledge to withdraw American forces been followed through on.

When the US and Saudi Arabia recently blamed Iraqi forces for carrying out an attack on Riyadh’s East-West Pipeline, launching a large-scale bombing campaign across the country, some Iraqi officials instead issued statements against Iraq’s armed factions that had vehemently denied involvement in the incident.

The Trump administration is openly pushing for the disarmament of all military factions within the country, a project Washington has also sought to impose on all Resistance groups across the region. The United States has not allowed for there to be a reasonable integration of Resistance forces like Hezbollah in Lebanon with the Lebanese Armed Forces, nor allowed time for formal agreements to be struck in Iraq of a similar nature. Their goal is simply to disband these groups and then exert control over the armed forces of Lebanon and Iraq, leaving them all but defenseless and without access to strategic weapons capable of deterring violations of national sovereignty.

In the case of Baghdad, the nation’s government was a construct of US occupation; Washington still holds the economic cards that are capable of pressuring any leadership, no matter how well-intended its goals are, while it maintains an enormous soft-power pull through its extensive NGOisation project inside the country. Iraq was not allowed to rebuild its nation’s military following the toppling of Saddam Hussein’s rule in 2003, leaving it defenseless against ISIS terrorism a decade later.

On the ground, this is why there was a need for the Hashd al-Shaabi (Popular Mobilisation Forces) to emerge. It was the Hashd that was chiefly responsible for defeating the terrorist invasion and purging its militants from Iraqi cities. Many of these groups that fought under the banner of the Hashd then went on to develop considerable military power and an extensive arsenal.

As revealed during the Ramadan War earlier this year, the Israeli Mossad was able to develop bases inside Iraqi territory, while numerous militant groups still exist across the country’s territory, including various armed factions that are backed by the CIA and the Mossad.

If the Islamic Resistance in Iraq is disbanded and disarmed, then Iraq will be in the exact same defenseless position that allowed for ISIS to sweep through the nation so rapidly and seize so much territory, leaving behind a trail of blood in their wake. This poses a threat to not only Iraq, but other neighbouring countries, including Iran. It threatens Syria’s fragile status quo too.

An Iraq without the Islamic Resistance would be like a Lebanon without Hezbollah, completely left at the mercy of the United States and their Israeli allies. Washington and Tel Aviv have a project that aims to totally dismantle regional sovereignty; this is why they have dedicated trillions of dollars and countless resources to destroying the armed forces of both Iraq and Syria over a period of nearly 30 years now. They are not about to simply sit by and allow Iraq and Syria to rebuild capable militaries, allowing them to follow the will of their people and to defend their own national interests.

The United States still maintains its air defence systems inside Iraqi territory, can use the country’s airspace at will and, as we saw only months ago, will launch airstrikes across the nation at the drop of a hat.

In order to deter a return of American occupation forces, under the guise of fighting whatever future threat they choose to use, there must be an Iraqi military force that is capable of acting in defense of the country, both on the ground and through the use of its long-range munitions if need be. A nation without a real military force cannot enjoy sovereignty. And a nation that is not able to go against the will of the United States, will serve as its proxy and will suffer the blowback that is inherent in complicity.

The US withdrawal from Iraq did not happen without a long history of resistance against its forces and public opinion that also opposes American interference. Protecting the achievement of ridding the country of the majority of US forces takes real military deterrence. Otherwise, the Israelis and the US will simply use the country’s territory for whatever projects they wish.

RT | October 1, 2026

European NATO members should have been able to attack Iran instead of relying on the US and Israel, according to Secretary-General Mark Rutte, the head of the self-described defensive alliance.

Iran has been attacked twice in two years, both times over allegations that it seeks to develop nuclear weapons, which Tehran rejects as false. Speaking at the Euronews Defence & Space Summit on Friday, Rutte endorsed the idea that European nations should acquire the military capabilities needed to carry out such wars of aggression themselves.

In the future, “the Europeans will be able to take care of their backyard themselves. It should be us doing this, not the Americans,” he said.

“Europe was not able to take out the nuclear capability of Iran. We couldn’t. We didn’t have the capabilities. In 10 years, we can and we should,” he added, referring to multi-billion euro rearmament efforts now underway in European members of the military bloc.

Earlier in the day, the NATO chief dismissed Russian concerns over hostile rhetoric by some members of the bloc regarding the Russian exclave of Kaliningrad Region.

“Basically what we said is, ‘hey, listen, we are a defensive alliance, and stop the nuclear threat’,” he told journalists when asked about a formal warning Moscow had sent to Brussels.

Russia cited remarks by Polish Foreign Minister Radoslaw Sikorski, who proposed in September deploying additional troops near the Russian border so that Moscow would be “uncertain of what we will do.” Moscow said it would use its “entire available arsenal” to defend Russian territory from a possible attack by NATO states.

NATO was created in the early years of the Cold War, ensuring a continued US military presence in Western Europe. The Soviet Union later established its own military alliance, the Warsaw Pact, which no longer exists.

While NATO describes itself as a defensive alliance, it has carried out military attacks against other countries, including the UK- and French-led 2011 intervention in Libya, after which the North African state was balkanized.

Russia considers NATO’s eastward expansion since the end of the Cold War a major national security threat and has cited it as one of the principal causes of the Ukraine conflict.

Rutte’s argument in support of the US-Israeli attacks on Iran echoed remarks by German Chancellor Friedrich Merz, who said in June 2025 that the Israelis were doing “[the] dirty work for us.”

Palestine This Week | Middle East Monitor | September 30, 2026

This week’s MEMO review examines claims about Netanyahu’s advance knowledge of 7 October, his provocative UN speech and Israel’s sweeping West Bank closure. We discuss calls to free Marwan Barghouti, moves to bar Arab-led parties from Israeli elections, Trump’s rejection of Iran’s proposal and allegations of election interference involving Israeli firms.

Chapters:

00:00 Introduction & Overview

01:41 Claims of Netanyahu’s Advance Knowledge of 7 October

18:14 Netanyahu’s UN Speech: Props, Provocations and Defiance

22:58 Israel’s West Bank Closure and Its Impact on Palestinians

26:30 Growing Calls to Free Marwan Barghouti

29:40 Israel’s Political Opposition and the Two-State Solution

35:00 Arab Party Disqualifications: Democracy and Apartheid

38:07 Trump Rejects Iran’s Proposal: What Was on Offer?

41:42 Meta’s Restrictions on Lula and Allegations of Israeli Election Interference

Subscribe to our YouTube channel: https://tinyurl.com/447fpn8k

Visit our website: https://www.middleeastmonitor.com/

By Andrew Day | The American Conservative | September 29, 2026 

No one would claim that the Iran War has been a political godsend for President Donald Trump and the Republican Party. But some Israel-First conservatives are willing to say—and lately have been incessantly saying—that the Iran War hasn’t been a political scourge.

Those Israel-First conservatives are wrong, even if the devil is, at least partly, hidden in the details. The Iran War has damaged Trump’s approval ratings, consumed his presidency, and darkened the GOP’s prospects in the upcoming midterm elections.

A chief proponent of the argument that Trump hasn’t suffered all that much from the Iran War is Ben Shapiro of the Daily Wire. Shapiro’s political analysis is plainly motivated by the fact that he was a loud and influential proponent of the war who promised—falsely, as it turned out—that Iran couldn’t close the Strait of Hormuz, a chokepoint for the global energy trade.

“There’s an op right now to pretend that the real reason for President Trump’s unpopularity is foreign policy, but that is not true, by the polling data, it is not true,” said Shapiro on a recent episode of his podcast. “The reality is that Americans have affordability concerns, President Trump came into office saying he was going to alleviate the affordability concerns. He has not in fact alleviated the affordability concerns, and therefore, his polling numbers have consistently slid since Liberation Day.”

This is a bit like me saying my wife isn’t mad at me because of the drinking, but because I drunkenly crashed the car.

The Iran War, as everyone now knows, has driven up prices at the pump—prices which, unfortunately for Trump, are prominently displayed on every major street across the country. On the eve of the war, regular gasoline averaged $2.98 per gallon. Today, at the time of writing, the average price is $4.48. Americans are notoriously averse to high gasoline prices and tend to punish presidents over the issue, sometimes even when the president can’t justifiably be blamed.

But make no mistake: Virtually every sentient adult understands that 1) oil comes from the Middle East, 2) Trump started a big war in the region, and 3) gas prices shot up right afterwards. And again, even if Americans didn’t grok the connection between the war and the gas-price spike, the latter would still have hurt Trump politically, and it would still be a knock-on effect of the former.

It’s not just prices at the pump that have gone up because of the war. Groceries and other consumer goods travel across this vast land on tractor-trailers that run on diesel and get a lot fewer miles per gallon than even your Uncle Larry’s F-350. Diesel prices have smashed records and now sit at around $6.50, up from $3.76 before the war.

No wonder truckers are furious, prompting rumors of an imminent strike.

And no wonder the Iran War has contributed to general inflation in America. Anyone who has been reading the official economic reports knows the war is responsible for more than a third of recent inflation.

Before the war, inflation was trending down, only a couple ticks away from the Federal Reserve’s target of 2 percent. It seems likely that Trump, if he hadn’t started his dumb war in the Middle East, would have garnered praise for presiding over declining inflation and that the Fed would have cut interest rates, juicing economic growth. Instead, inflation now sits at 3.4 percent.

(As an aside, this weekend I traveled to Istanbul, where many Middle Easterners of various nationalities complained to me that Americans only oppose the war because of the gas prices. That’s simply not true. The war has been unpopular since day one, when all that Americans knew was the American-Israeli strikes had killed Iranian leaders including the Supreme Leader Ali Khamenei.)

Shapiro, ever the neoconservative, insinuated in the quote above that the decline in Trump’s approval rating owes more to his tariffs than to his war. The data doesn’t back that up, as the conservative commentator and election analyst Ryan Girdusky noted on X in response to new survey data. “The most eye opening part of this poll is that Trump’s approval rating and the strength of the economy went up right after Liberation Day,” Girdusky said. “Fell slightly afterward and then plummeted at the start of the Iran War.”

Shapiro has unwittingly helped uncover another, subtler, way in which the Iran War has indirectly damaged Trump’s approval ratings and, by extension, the Republican Party brand. Shapiro recently went on Fox News to commiserate with the host Mark Levin—another Israel-Firster and warmonger—over all those dastardly antiwar conservatives blaming the Iran War for everything.

“Iran is a 4-percent issue with the American people,” Levin said, as Shapiro nodded in agreement. Levin was referring to Fox News polling that shows not many Americans name the Iran War as their top issue. “So, whatever happens in the midterms, it doesn’t appear that Iran’s going to drive anything one way or another.”

“I think that’s exactly right,” Shapiro replied.

Part of the problem with Levin’s analysis has already been covered above. In the Fox poll, a plurality of Americans—34 percent—named the cost of living as the most important issue, and the Iran War has made living costlier.

But the subtler problem is perhaps even more illuminating. Simply put, Americans believe Trump is too focused on foreign policy at the expense of the problem they really care about, which, in fact, his Iran War has exacerbated. This is a PR disaster for the Trump administration and the GOP. Americans don’t prioritize the war that has dominated the headlines and distracted the White House, even as Trump claims to have boldly prevented Iran from unleashing nuclear apocalypse.

It may be grotesque to find silver linings in this dumb and deadly war, but here’s one: Americans no longer buy the war narratives. That is certainly not, however, a silver lining for Republican candidates in this year’s election, no matter how cynically they try to distance themselves from the war. In fact, it’s a good bet they’ll do much worse than if Trump hadn’t launched this unnecessary war, despite what Shapiro and his ilk may tell you.

Press TV – September 30, 2026 

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.

US Treasury Secretary Scott Bessent said 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 since 1979 while repeatedly expecting economic pressure eventually to produce decisive Iranian economic collapse.

The economy did not disappear under those campaigns; instead, Iran developed domestic industries, expanded regional commerce, strengthened Asian trade and accumulated extensive experience operating outside Western financial systems.

The proposition that an economy which has absorbed American sanctions for almost half a century will suddenly become economically empty within two weeks therefore indicates the depth of delusion among the current US leadership.

Iran enters the current confrontation with a large domestic market, substantial productive capacity, enormous energy resources and deeply established commercial relationships extending across neighboring countries and wider Eurasian markets.

The World Bank describes Iran as relatively diversified for an oil-exporting economy, with substantial manufacturing, agricultural and service activity supported by a large population and significant domestic consumption.

That domestic market sustains production across food, pharmaceuticals, construction materials, steel, petrochemicals, machinery and consumer goods, meaning Iranian production does not depend entirely upon continuous access to Western consumers.

Iran has also developed major industrial capabilities suited to its own resources and infrastructure, including steel, refining, petrochemicals, cement, power generation, construction, food processing and pharmaceutical manufacturing.

These capabilities have continued developing despite restrictions on Western investment and technology, demonstrating that Iranian industrial activity does not depend upon permanent participation by Western companies.

Iran’s prolonged exposure to sanctions has produced accumulated technical and commercial knowledge, giving Iranian companies decades of experience managing restricted supply chains and unreliable access to foreign suppliers.

When foreign manufacturers withdraw, Iranian companies have learned to redesign equipment, substitute components, develop domestic suppliers and cooperate with businesses from countries willing to maintain commercial relationships.

Academic research has documented this process, showing that sanctions can simultaneously restrict foreign technology while encouraging domestic technological development and adaptation within affected Iranian industrial sectors.

The resulting knowledge extends beyond individual companies, because engineers, technicians, procurement specialists and managers have accumulated practical experience managing shortages, substitution and alternative sourcing.

Iranian manufacturers therefore do not design procurement systems around the assumption that every international supplier will remain available indefinitely, making adaptation part of ordinary commercial planning.

Iran’s geography provides another economic advantage, because the country borders Turkey, Iraq, Armenia, Azerbaijan, Turkmenistan, Afghanistan and Pakistan while possessing coastlines reaching the Persian Gulf and the Sea of Oman.

Those borders connect Iranian commerce with the Caucasus, Central Asia, South Asia, the Persian Gulf, Turkey and Iraq, while transportation corridors also connect Iran with Russia and wider Eurasian markets.

Financial sanctions can make transactions more difficult, but they cannot physically relocate Iran or eliminate its access to neighboring markets, suppliers, transportation routes and established regional trading relationships.

Iran has consequently developed commercial links involving Iraq, Turkey, the United Arab Emirates, Afghanistan, Pakistan, the Caucasus, Central Asia and China through years of sustained economic interaction.

The World Bank has documented Iran’s increasing trade orientation toward neighboring countries and China as sanctions restricted conventional international relationships, making this regional pivot an established economic feature.

China adds another dimension because it combines enormous industrial capacity with sustained demand for Iranian energy while supplying machinery, manufactured products and industrial inputs required throughout Iran’s domestic economy.

The US-China Economic and Security Review Commission identifies China as Iran’s largest trading partner and estimates that China imported approximately 1.4 million barrels of Iranian crude daily during 2025.

Chinese independent refiners have continued purchasing Iranian crude through commercial arrangements designed to reduce their exposure to American financial restrictions and sanctions enforcement.

That relationship demonstrates why Iran does not require unrestricted access to every Western market when Chinese demand and extensive regional commerce provide alternative markets for Iranian commodities.

Iran’s energy resources provide enormous economic depth, with the World Bank ranking the country second globally in proven natural-gas reserves and fourth globally in proven crude-oil reserves.

Those resources provide export potential while also supplying abundant domestic energy and petrochemical feedstocks supporting manufacturing, electricity generation, transportation and numerous energy-intensive industrial activities.

Iran has consequently developed a substantial downstream economy converting hydrocarbons into refined products, petrochemicals and industrial inputs rather than depending exclusively upon crude-oil exports.

The World Bank has noted that sanctions encouraged additional processing of hydrocarbons into petrochemicals, illustrating how restrictions contributed to changes within Iran’s export structure.

Iran has also developed financial mechanisms outside conventional Western banking, including bilateral currency arrangements, exchange houses, barter, intermediary companies and indirect settlement channels supporting international commercial activity.

The World Bank has documented growing use of bilateral currency exchange, barter and indirect payment mechanisms as Iranian trade shifted increasingly toward neighboring countries and China.

These arrangements provide alternative methods for exchanging value when conventional dollar-based transactions become unavailable or prohibitively difficult.

Their existence helps explain why Washington increasingly targets third-country banks, intermediaries and commercial facilitators, because Iranian commerce extends through extensive international networks beyond domestic financial institutions.

Against this background, Bessent’s prediction assumes that eliminating a major source of oil revenue would effectively remove the broader economic foundations supporting Iran’s productive system and commercial institutions.

Iran’s economic structure is considerably broader, because oil exports represent one component of national 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 adaptation through changing trade patterns and alternative payment mechanisms.

Economic contraction, however, is fundamentally different from the disappearance of productive capacity, infrastructure, commercial institutions and domestic relationships sustaining millions of Iranian consumers and businesses.

American sanctions have repeatedly targeted Iranian banking, oil exports, investment, technology, shipping and foreign companies, yet Iran has retained its industrial base and redirected substantial trade toward neighboring countries.

Washington possesses powerful financial tools, but financial restrictions cannot physically eliminate Iran’s factories, oilfields, farms, engineers, consumers, ports, borders or commercial relationships accumulated over decades.

The central question is therefore whether American pressure can erase the productive, geographical, resource and commercial foundations Iran has accumulated across nearly half a century of economic adaptation.

Nothing in Iran’s economic history demonstrates that those foundations can disappear within two weeks, particularly while the country retains domestic production, regional markets, energy resources and established commercial relationships.

Iran therefore enters the present confrontation with domestic capabilities, energy resources, industrial capacity, geographic advantages and international relationships capable of keeping its economy operating despite intensified American terrorism.

Al Mayadeen | September 30, 2026

Hezbollah’s Media Relations Office categorically denied any relationship or affiliation between the party and the alleged cell that the Syrian Interior Ministry said it had apprehended in the Yarmouk Basin in Daraa.

In a statement, the Lebanese Resistance reiterated that it has no presence on Syrian territory and is not involved in any security or military activity there, stressing its longstanding commitment to Syria’s security and stability and the safety of its people.

Hezbollah points to Israeli  regional scheme

The party called on the Syrian authorities to “remain vigilant against attempts to implicate its name in order to stoke tensions and sow discord between Lebanon and Syria.”

It urged the Syrian authorities to investigate the circumstances surrounding the allegations, identify those behind them and determine who stands to benefit from escalating tensions between the two countries.

Hezbollah pointed to “Israel”, accusing it of intensifying its attacks on Syria and Lebanon and seeking to undermine the security and stability of the region.

A recurring pattern

The denial follows months of similar accusations against Hezbollah from Syrian officials since the fall of the al-Assad government.

Earlier this month, Hezbollah’s Media Relations Office has categorically denied any connection to a security cell reportedly arrested on suspicion of seeking to destabilize Lebanon and Syria, dismissing the accusations as entirely baseless.

In July, Hezbollah rejected claims tying it to an attempt to smuggle weapons and missiles across the Syrian-Iraqi border, after Syrian authorities said they had intercepted a shipment concealed inside a fuel tanker arriving from Iraq. Also in April and May, the group denied allegations linking it to a cell accused of plotting to assassinate a religious figure.

Hezbollah has affirmed on each occasion that it maintains no activity, connection, or presence inside Syrian territory. The group has said the repetition of such claims raises serious questions and points to parties seeking to inflame tension between the Syrian and Lebanese peoples.

The Lebanese Resistance has also pointed to similar fabricated allegations emerging from Bahrain and Kuwait, warning of a foreign plot aimed at stoking tensions between Arab nations and the Axis of Resistance and destabilizing the wider region.

By Hala Farhat | Al Mayadeen | September 30, 2026

Iraq’s government has declared September 30 the final date for ending the US-led coalition’s military mission. Prime Minister Ali al-Zaidi’s office says October 1 will find the country “free of any foreign military presence,” closing a deployment that once reached about 170,000 US troops.

But withdrawal leaves intact much of the damage inflicted by the invasion and the 13 years of sanctions that preceded it, along with the financial arrangements through which Washington continues to exert influence.

The US left Iraq’s productive economy devastated, its institutions dismantled and reshaped, and its workforce left increasingly dependent on a state funded by oil. Access to that income remains vulnerable to US pressure.

The question after the troops leave is how much control Iraq will have over the economy they leave behind.

Thirteen years of sanctions

The erosion of Iraq’s economy began long before March 2003. The UN Security Council imposed sweeping sanctions after Saddam Hussein’s regime invaded Kuwait in 1990. Drawing on internal UN records, Joy Gordon’s Invisible War describes one of the most comprehensive and devastating sanctions regimes ever imposed.

The embargo quickly collapsed incomes. Reconstructed World Bank estimates showed GDP per capita collapsing to a third in a single year,  going from about $3,527 in 1990 to $1,255 in 1991.

Public employees who had earned $150 to $200 a month before sanctions were earning $3 to $5 by 1996, according to a 1997 assessment. By 2000, the International Committee of the Red Cross reported salaries as low as $2 a month and unemployment around 50 percent.

Factories, power stations, and water plants could not recover without imported equipment and spare parts. Yet any member of the sanctions committee could hold an entire contract indefinitely, even over a single disputed item. Gordon documents Washington’s use of the “dual-use” designation to restrict goods as basic as water pipes. By August 2002, the UN counted 2,058 contracts worth about $5.2 billion that had been placed on hold, including $745 million in oil industry equipment.

The restrictions also placed Iraq’s oil income beyond Baghdad’s direct control. Under the Oil-for-Food program, buyers paid into a UN-administered escrow account. After deductions for compensation, administration, and weapons inspections, the proceeds could finance only approved purchases. Iraq exported roughly $65 billion in oil under the program but could not use that money as ordinary budget revenue for wages, maintenance, or local services.

The collapse pushed skilled workers out of their professions. A UN humanitarian survey of 1,157 degree holders employed by aid organizations found 725 in general-service or menial jobs, including doctors, engineers, and scientists working as drivers, clerks, and guards.

By the time US troops arrived, Iraq had endured years of falling wages, industrial decline, and lost expertise. The occupation’s first decisions deepened that damage.

Dismantling the state, contracting out reconstruction

On May 16, 2003, the occupation authority issued Order 1, barring senior Baath Party members from public employment and requiring the screening of senior staff in ministries, hospitals, and universities. A week later, Order 2 dissolved the Defense Ministry, army, Republican Guard, and intelligence bodies.

The International Center for Transitional Justice estimates that Order 2 alone left about 400,000 conscripts, officers, and officials without jobs. The World Bank counted more than 2 million unemployed Iraqis, nearly 30 percent of the labor force, around 2003–2004. Meanwhile, Iraq’s health minister estimated that roughly half the country’s prewar doctors had fled as kidnapping and assassination made their work increasingly dangerous.

The occupation then opened the weakened economy to foreign competition. Order 39 allowed wholly foreign-owned companies and guaranteed investors treatment no less favorable than Iraqi businesses, while excluding natural resource extraction. Other orders suspended tariffs, later replaced by a flat 5 percent levy, and capped income tax at 15 percent from 2004. The World Bank warned that rapid opening would cost jobs in a country whose private sector was too weak to employ displaced workers.

Reconstruction brought billions of dollars, but much of the spending flowed through foreign contractors. The United States spent more than $60 billion over roughly a decade, according to the Special Inspector General for Iraq Reconstruction (SIGIR). More than $25 billion went to training and equipping security forces after the occupation had dissolved Iraq’s existing military institutions.

SIGIR found that reconstruction began without adequate security, consultation with Iraqi ministries, or planning for long-term maintenance. Its final report estimated waste at $3 billion to $5 billion from the main reconstruction fund and as much as $8 billion overall. The largest early infrastructure contracts went mainly to US firms. A $1.8 billion award to Bechtel in January 2004 was open only to American bidders.

Iraq’s own money followed a similar path. UN Security Council Resolution 1483 established the Development Fund for Iraq to receive oil revenue, with the occupation authority directing spending until June 2004.

An Iraq Revenue Watch analysis of contracts paid from Iraqi funds found that US companies received 74 percent of their value. US and British companies together received 85 percent, while Iraqi firms received 2 percent. Audits found that 73 percent of the value of Development Fund contracts above $5 million had been awarded without competitive bidding.

Oversight was inadequate even to establish how some of that money had been used. A 2010 SIGIR audit found that the Defense Department had failed to establish required accounting controls for about $8.7 billion of the $9.1 billion it received from the fund. It could not document spending of about $2.6 billion.

The result was a reconstruction process that directed vast sums abroad while leaving Iraq with damaged services, limited productive capacity, and institutions struggling to rebuild.

An oil-funded system of patronage

With factories closed or looted and no private industry to replace them, the state became the place where Iraqis look for work. An assessment by the International Fund for Agricultural Development, using World Bank data, says public employment accounts for nearly all formal jobs and 40 percent of all jobs. Salaries and pensions took about 90 trillion dinars, roughly $69 billion, more than 40 percent of the 2024 budget, and the World Bank says another half a million government jobs were added during the spending expansion that preceded 2025.

The private sector has not filled the gap. Estimates put imports at more than 90 percent of the goods in Iraqi shops, while manufacturing makes up only around 2 percent of GDP. The World Bank says nearly 29 percent of the population is aged 15 to 29, and that this large group is entering the labor market amid limited job creation, a preference for public-sector work, and a private sector too small to absorb them. Youth unemployment is about 32 percent, and only around 11 percent of women take part in the labor force.

The IMF’s 2025 assessment describes the same pattern, citing high unemployment, an excessive state footprint, corruption, a weak banking system, and an inefficient electricity sector, and it called the wage trajectory fiscally unsustainable. Analysts describe a cycle in which secure public wages raise the pay that educated workers expect, private firms struggle with unreliable power and weak finance, and young graduates keep turning to the state for jobs, which raises the demand for more public hiring.

Oil pays for all of it. The World Bank estimates that oil supplied about 88 percent of government revenue and 91 percent of exports in 2025.

The financial levers Washington keeps

Iraq’s oil income has passed through outside hands since 1996, first a UN escrow, then the occupation authority’s fund, and now the New York Fed.

The Development Fund’s accounts were opened at the Federal Reserve Bank of New York, where Iraqi oil revenue still flows. Buyers pay dollars into a Ministry of Finance account, and the Central Bank of Iraq converts part of the income into dinars for government spending. US jurisdiction over dollar clearing, correspondent banking, and physical cash shipments gives Washington substantial influence over Iraq’s access to its money.

In January 2020, after Iraq’s parliament called for foreign troops to leave, the Trump administration threatened to block access to the account. Iraqi officials said it then held about $35 billion and warned that losing access would disrupt salary payments and the exchange rate.

US restrictions introduced in November 2022 forced banks seeking dollars for international transfers to disclose the final beneficiaries and purposes of transactions through an electronic platform, with requests screened by the New York Fed. US and Iraqi accounts linked the measures to concerns about transfers to sanctioned Iranian actors.

Consequently, more than 80 percent of daily wire requests were initially blocked or returned. Transfers fell from $224.4 million on October 17, 2022, to $22.9 million on January 17, 2023. Demand shifted to the parallel market, where the dinar traded at about 1,588 to the dollar in February against a newly set official rate of 1,300. In a country dependent on imported food and consumer goods, restricted dollar access raised costs for ordinary households.

In April 2026, Washington applied pressure through physical cash, halting a shipment of about $500 million and suspending parts of security cooperation. Iraqi officials said the halt affected banknotes used for travel, medical treatment, education, and retail exchange, while electronic transfers for imports continued. Some shipments resumed in July. On September 26, Baghdad announced that Washington had agreed to continue them.

US sanctions have also reshaped access to Iraq’s oil fields. Russia’s Lukoil left West Qurna 2 after sanctions, and Chevron signed agreements to take over its development. During al-Zaidi’s July visit to Washington, Iraq signed dozens of agreements with companies including ExxonMobil, KBR, Halliburton, and Shell. US Energy Secretary Chris Wright cited more than $60 billion in commercial agreements, while al-Zaidi told The National that US companies would receive top priority. According to the Atlantic Council, Donald Trump framed the deals as American oil companies taking the place of US forces.

As US forces prepare to leave Iraq, they leave behind a trail of devastation. Decades of sanctions and occupation have weakened its productive economy, dismantled state institutions, and left livelihoods dependent on an oil-funded system of patronage. The consequences will endure long after the troops depart.

Washington retains substantial power over Iraq through its influence over dollar access and the financial channels that sustain the state. The withdrawal ends a military mission, while leaving Baghdad to contend with both the damage of US intervention and the control Washington continues to exercise.