Is Israel About To Cause A US Economic Crash?

Right, so the US administration of tangerine tinged toddler tantrum thrower Donald Trump stands at risk of economic calamity should it go to war with Iran for the sake of Israel, because war between the two states may not be a conventional one, but might end up being more of an economic conflict that might have catastrophic consequences for the American economy. The prospect of war with Iran, driven largely by Israeli security concerns rather than genuine US national interests, is one of the most significant geopolitical threats facing America today as the rhetoric between both nations seems to keep on escalating and to what end?
At the heart of this apparently looming confrontation lies the fundamental imbalance in the US-Israel relationship, because while Israel consistently acts in its own national interests - at the expense of everyone else around them as that is - the United States continues to provide unconditional military, diplomatic, and financial support and the US public can see it, so we’ve got a situation where Israeli security concerns effectively dictate US foreign policy in the Middle East, even when those policies run counter to American economic interests, even to the extent it could trigger a wider war. It is insane and for as much as Us citizens might be distanced from conventional warfare, economic warfare could come crashing down on their doorstep and are they really prepared to see their economy crash for the sake of Israel?
Right, so a US-Iran conflict, the sort of thing Benjamin Netanyahu dreams of, if allowed to occur, and the rhetoric is getting ever increasingly concerning would likely have devastating consequences for the American economy. Unlike conventional wars fought on distant battlefields from the white picket fences of the stereotypical American family, living the American dream and for as much as media headlines talk up the case of Iran’s alleged nuclear capabilities, which a recent US report has actually rubbished, Iran has developed methods specifically designed to target economic vulnerabilities. Iran know, the average US citizen is watching war their nation is involved in, know it is nowhere near them, and as appalled as they might be, they aren’t necessarily directly impacted. Hit the US economy though, that changes. With the US economy already showing signs of fragility - including soaring national debt, persistent inflation and the like – what could be the consequences of Iran hitting that too, and for what? Israel? What do they do for you in America apart from beg for more weapons, more aid and getting but often at your expense?
There is obviously a lot of bad blood between the US and Iran going back decades, this is not something I want to go into, but decades of broken promises and hostile actions has put both at serious loggerheads and this is getting worse, the matter of Israel and the destabilisation of the Middle East, the US’s ardent and unapologetic support for Israel in spite of all of that versus Iran’s so called Axis of Resistance in support of Palestine.
Israel has an outsized role in shaping American policy toward Iran, pushing for more confrontational approaches that serve Israeli security interests rather than broader US strategic goals. The Israel Lobby is arguably nowhere more pervasive than in the US and this can include including government-to-government relations, the Miriam Adelson type Zionist donors, the pro-Israel lobby in Washington, AIPAC and sympathetic think tanks that shape policy discourse.
Prime Minister Benjamin Netanyahu has been particularly vocal in his warnings about the Iranian nuclear threat, going so far as to present a cartoonish diagram of a bomb at the United Nations in 2012 to illustrate his claims about Iran's nuclear program. These alarmist warnings have continued despite consistent assessments from US intelligence agencies that Iran is not actively pursuing nuclear weapons development, a quote on this from the annual threat assessment intelligence report published by the US as reported by The Cradle reading:
‘The annual US intelligence threat assessment report published on 25 March says Iran is not currently building a nuclear weapon, according to a copy of the document reviewed by Reuters.
“The IC (intelligence community) continues to asses that Iran is not building a nuclear weapon and Supreme Leader Khamenei has not authorized the nuclear weapons program he suspended in 2003,” the report reveals.’
The result of all of this influence is a US policy toward Iran that is disconnected from objective reality. Despite the absence of evidence that Iran is developing nuclear weapons, the threat of military action remains on the table.
Therefore the justification for military action against Iran rests on increasingly shaky foundations, with the primary argument - the nuclear threat - being directly contradicted by US intelligence assessments.
Where will that leave the cheerleaders of this move then?
The argument that Iran is destabilising the region is another common refrain and it too similarly fails to account for the role of IS and Israeli actions in creating regional instability, none more so than the genocide Israel is perpetrating in Gaza.
Even the recent attacks on shipping in the Red Sea by the Houthis frequently attributed to Iranian influence, though they increasingly protest their independence, yet the US would rather attack them than deal with Israel breaking international law and of course all attacks on Yemen get attributed to Iran again and by attacking Yemen, they claim to be attacking Iran.
So with the nuclear argument debunked and other justifications proving equally hollow, the case for war with Iran appears to rest primarily on ideological commitment to maintaining US support for Israeli dominance in the region rather than any genuine threat to American security.
This doesn’t reduce the risk of conflict, but what shape that conflict takes is another matter entirely and where the US might be seen to be the sort to go in all guns blazing should it come to that, Iran it seems have other options and the US economy might be the most effective target they could aim for.
Iran's most potent economic weapon is its ability to disrupt global oil supplies. The Strait of Hormuz, the narrow waterway through which approximately 20% of the world's oil passes daily, represents the most vulnerable chokepoint in global energy markets given that Iran border it completely from the East. Iranian officials have explicitly warned that if US sanctions prevent Iran from exporting its oil, they will ensure no other regional producers can either saying if we can’t sell our oil then no-one can.
The most immediate threat comes from potential oil price shocks. Despite increased domestic production, the U.S. remains deeply integrated into global energy markets. A sustained price spike above $150 per barrel - well within the realm of possibility if Iranian threats materialize - would likely push inflation back to crisis levels. The Federal Reserve would face an impossible choice between raising interest rates to combat inflation, crushing an already weak economy or allowing prices to spiral out of control.
The banking sector represents another critical vulnerability. The 2023 collapse of several regional banks revealed systemic weaknesses in the financial system a combination of cyberattacks on financial institutions and broader economic uncertainty could trigger runs on the banks.
Attacks on shipping in the Persian Gulf and Red Sea would force longer, more expensive transportation routes in addition those being caused already by the Houthis.
These are all options, all vulnerabilities to create a situation where Iran could inflict severe economic damage without ever directly attacking the US homeland and without a single rocket being fired. By targeting critical aspects of the global economic system, Tehran could bring the consequences of war directly to American consumers in the form of skyrocketing prices, financial instability, and job losses on top of those being caused by Trump all by his big orange self.
Of course that doesn’t rule out the potential for more conventional warfare in addition to economic strikes that would hit US consumers. Unlike the relatively contained Iraq and Afghanistan wars, conflict with Iran would likely draw in multiple regional actors, those entities that get referred to as proxies most often, the Axis of Resistance. Israel would almost certainly face further rocket barrages from Hezbollah in Lebanon on top of those being fired due to their resumption of the Gaza genocide, while Gulf states hosting US bases, Bahrain, the UAE, Jordan, might experience retaliatory strikes targeting those US assets.
With no evidence Iran is developing nuclear weapons and no plausible path to regime change that wouldn't create chaos worse than the current situation, military action offers no discernible benefits, not to the US, not to the Middle East, Netanyahu would be absolutely delighted though. He’d literally be the only beneficiary. The idea that the US should risk economic catastrophe to satisfy Israeli security concerns is insane and more people, not least Americans themselves need to come to this realisation.
Ultimately, avoiding war with Iran isn't just about preventing human suffering or upholding international law - though these are important considerations. It's about protecting the American economy from a self-inflicted catastrophe that could make the COVID downturn look mild by comparison. The United States cannot afford another disastrous Middle Eastern war and if it engages in one, as powerful as the US is, it might actually come off worse.
It isn’t just in the US where Israeli rhetoric could be driving a nation to calamity, it is also happening in Israel itself, Netanyahu potentially triggering nothing less than civil war would you believe! Get all the details of that story in this video recommendation here as your suggested next watch. Please do also hit like, share and subscribe if you haven’t already done so, so as to ensure you don’t miss out on all new daily content as well as supporting the channel which is very much appreciated and I will hopefully catch you on the next vid. Cheers folks.