[bequanna]

> I don't know what comes after, but when you combine this with the Iran war it's going to be closer to economic depression.

I follow your extrapolation in the first part, but this is where you lost me.

Why is the Iran war guaranteed to have long-term net negative consequences? It seems far too early to predict the outcome with any kind of certainty.

[jcranmer]

About 20% of the world's oil flows through the Strait of Hormuz, which is effectively closed right now. So far, the economy is coping by drawing down inventories elsewhere and praying that the strait reopens soon, but even then, crude oil futures are skyrocketing (up 50% in a week). If this lasts for a few months--and if a few oil tankers get blown up in the crossfire--this is going to be a repeat of the 1970's oil embargo. There is also the worry that the war is going to end up targeting and destroying a significant chunk of oil production facilities in the region, which will persist the energy crisis well beyond the end of active hostilities.

Combine that with the fact that the war is being led by a senile idiot who is unable to articulate a strategic purpose for the war in the first place and being prosecuted by someone who thinks that war crimes are aspirational, and you begin to understand that there is actually little prospect of this being resolved anytime soon.

[Ostrogoth]

One potential knock-on impact of the strait being effectively closed, is that at some point the gulf states will be forced to shut-in production as local storage fills up and production can’t be exported. That combined with war damage to critical transport/export infrastructure will cause a lag where production can’t meet global demand even when the strait re-opens. Turning oil wells back on is not like flipping on a light switch.

[velik_m]

It's already happening: https://finance.yahoo.com/news/kuwait-cuts-oil-refining-outp...

[toast0]

Ignoring concerns about the wisdom of the war; there's about three directions this can go:

Fizzle out: Strait reopens cause Iran needs ocean shipping.

Continue as now: oil trade disrupted, but using lots of missiles and drones and things; increased munitions demand leads to increased manufacturing jobs.

Boots on the ground: oil trade reopened, long term quagmire, probably more munitions production.

[nradov]

The other Gulf States will now have to greatly increase military spending in order to protect their sea lines of communication against Iranian aggression. A lot of that spending will flow to US defense contractors. (I'm not claiming this is a good thing, just that it's inevitable.)

[shimman]

Not just oil but a lot of fertilizers goes through the strait as well, fertilizers that have to be applied at certain moments of the year. Missing a shipment by a few months will decimate crop yields across the world.

If you think food is expensive now, wait until fall!

Unrelated, Grapes of Wraith is a good read if you're looking for something to distract yourself with.

[mjburgess]

Iran's principle strategy is to impose severe economic consequences on the US and its allies, to tip the balance of resolve in their favour. This is easy for them to do, because closing vital shipping lanes and attacking energy infrastructure in the region is done at only the cost of a few drones -- whilst defending this is incredibly expensive. This asymmetry is the only one which is profoundly in Iran's favour, and their best strategy for forcing a diplomatic resolution. This is why they are attacking multiple US allies in the region.

[lumost]

The Iran war is symptomatic of what's to come. If the US/other major powers feel unconstrained to wage semi-limited disruptive conflicts at will - then the world will be much less stable.

Iran can close the straight of hormuz as retaliation, and there really isn't anything that can be done about it except for invasion. Other countries have similar capabilities or can acquire them readily. If Cuba wanted to close the gulf in retaliation for a US attack - they could, Denmark could lock the north sea to US shipping and naval traffic etc. etc.

[nradov]

Cuba has effectively zero capability to project military power beyond their territorial waters. They can't close the Gulf of Mexico or even credibly threaten to do so. They are in no way comparable to Iran. As an island nation with limited natural mineral resources they're also very vulnerable to blockade.

[lumost]

Shahed style drones are quite inexpensive, the straight between key west and cuba is only 90 miles. To my knowledge, it is practically impossible to destroy distributed shahed launchers from an air campaign alone.

[nradov]

To my knowledge it is practically possible to carpet bomb Cuba and just kill everyone on the island. And they have almost zero domestic manufacturing capacity to build long-range drones (or anything else).

[convolvatron]

turn it around. how is it possible that we interfere with a population, already inflamed with hatred because of past interference, and expect them to become moderate apolitical consumers. we kill more fathers, there will be more angry sons. that's been going on for more than 50 years. so no, it doesn't seem like there is any good outcome to be had by invading yet another country in the area and setting up another weak puppet government. what is the end game supposed to be here?

[nradov]

There's no end game. In foreign policy circles they refer to this as "mowing the grass". Whenever an adversary starts to become a credible threat then bomb them enough to knock them down a few notches and delay the problem. From a purely amoral geopolitical perspective this can be effective, although at tremendous human cost.

[convolvatron]

personally I think this is 'fair'. wave your stick around and threaten people and the community takes away your stick. But I don't really trust this administration to follow the wisdom of the elder Bush. it seems a situation primed to follow the course of the mideast wars of the last couple decades, where the US stayed purely for the reason of not wanting to own up to the obvious and attempt to force some kind of submission. I guess we can check in a couple weeks to see which way the wind the blowing.

[ericfr11]

When a country leader says "another country leader won't last without my approval", he becomes an imperialist driven by power and money