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Iran War: The Energy Trap for China and Russia

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Paris (Imran Y. CHOUDHRY) :- Former Press Secretary to the President, Former Press Minister to the Embassy of Pakistan to France, Former MD, SRBC Mr. Qamar Bashir analysis : This war may be presented as a fight over nuclear fear, missiles, or regime behavior, but beneath the headlines lies a far larger strategic contest: who will command the chokepoints through which the lifeblood of the global economy flows.
Wars are often sold to the world in moral language, but fought for strategic outcomes. The ongoing confrontation centered on Iran is no exception. To the United States, Israel, Britain, France, and much of the Western media, the war is projected as a campaign of necessity: a preemptive effort to stop an alleged nuclear threat, weaken Iranian missile power, and restore security to a volatile region. In that narrative, Western force is disciplined, purposeful, and increasingly successful, while Iran is portrayed as cornered, degraded, and losing ground.
But from Tehran, and from those across the world who reject the Western reading of the conflict, the war appears entirely different. There, it is seen as a story of one nation, battered yet unbowed, resisting the most powerful military coalition on earth and still retaining the capacity to impose pain, uncertainty, and strategic cost. In this second narrative, Iran’s endurance itself becomes a kind of victory. A nation under siege is not expected to dominate the skies, but merely to survive, retaliate, and deny its enemies a clean triumph. That denial carries military, political, and moral weight.
Both sides choose facts that flatter their case. Both highlight only those developments that fit their desired conclusion. Yet when the smoke of propaganda begins to clear, a deeper question emerges: what, in truth, is this war really about?
The official Western justifications do not fully satisfy the scale of the conflict. Iran has long been accused of standing only days or weeks away from weaponization, yet no public evidence has shown an actual nuclear test, a declared bomb, or the unmistakable operationalization of such a weapon. If Tehran had already crossed that threshold, the world would likely have seen far clearer proof by now. The gap between nuclear capability and an actual deliverable bomb is vast, and it is precisely within that gap that political narratives are often built.
The second argument, that Iran must be attacked because of its ballistic missile capability, has greater strategic logic but also exposes a double standard. Yes, Iran’s missiles threaten U.S. bases, allied infrastructure, shipping routes, and Israel. But many states possess missile capabilities without becoming targets of such an overwhelming multinational military design. North Korea, for example, is more isolated, more repressive, and openly nuclear-armed, yet it has not been subjected to this kind of sustained Western-Israeli military pressure. Why? The answer is not found in moral principle. It is found in geography.
Iran sits beside the Strait of Hormuz, one of the most critical energy chokepoints in human history. According to the U.S. Energy Information Administration data you provided, about 20.9 million barrels per day of oil moved through Hormuz in the first half of 2025. That amounts to roughly one-fifth of global petroleum liquids consumption and about one-quarter of globally traded maritime oil. In the same period, around 11.4 billion cubic feet per day of LNG also transited the strait, representing more than one-fifth of global LNG trade. These are not marginal figures. They are the circulatory system of the industrial world.
That is what makes Iran categorically different from North Korea. Iran does not merely possess missiles, a controversial nuclear program, or an adversarial ideology. Iran sits astride a waterway through which the economic oxygen of Asia and much of the wider world must pass. China, India, Japan, and South Korea together accounted for nearly three-quarters of Hormuz crude and condensate flows in the first half of 2025. In other words, the great Asian engines of growth remain heavily dependent on the uninterrupted movement of Gulf energy through waters adjoining Iran.
Now consider the wider maritime map. The Strait of Malacca handled 23.2 million barrels per day in the first half of 2025, even more than Hormuz, making it the largest oil chokepoint in the world by volume. It is the shortest and most efficient route connecting Middle Eastern energy suppliers with East and Southeast Asia. China alone accounted for 48% of the import volumes passing through Malacca in that period. Meanwhile, the Cape of Good Hope, though not a chokepoint, carried 9.1 million barrels per day as rerouted shipping avoided attacks and instability around the Red Sea. Bab el-Mandeb and the Suez-SUMED route, once central arteries to Europe, saw their flows nearly halved from 2023 levels due to insecurity and rerouting. The global energy system is therefore not merely about production; it is about maritime passage, route vulnerability, insurance cost, naval reach, and the ability to protect or disrupt the channels through which supply moves.
If the United States, through military presence, alliance architecture, naval supremacy, and regional basing, were able to dominate the security environment around Hormuz while retaining influence across the broader chain of maritime corridors stretching toward Bab el-Mandeb, the Red Sea, the Cape route, and onward to Asia’s receiving lanes, then Washington would possess extraordinary leverage over the global energy order. It would not legally “own” these waterways, nor permanently command every vessel that crosses them, but it could shape the conditions under which oil moves, slows, detours, becomes more expensive, or becomes politically hostage to security calculations.
And that leverage would be immense. The United States today is itself a top oil producer and far less dependent on Gulf imports than in previous decades. By contrast, Asia remains far more exposed to disruptions in Gulf exports. This asymmetry matters. A power less dependent on a chokepoint but more capable of militarily policing it enjoys a structural advantage over powers whose economies rely heavily on its uninterrupted use. Such an arrangement would allow Washington to pressure adversaries not necessarily by stopping every cargo physically, but by raising risk, insurance, delay, and uncertainty to levels that alter trade behavior. In global energy markets, fear itself is a weapon.
Venezuela adds another layer to this picture. It possesses the world’s largest proven crude reserves, and while sanctions, infrastructure decay, and underinvestment have kept production far below its potential, the country remains a massive latent energy asset in the Western Hemisphere. If Washington can tighten its grip over western supply sources while also exerting naval and strategic influence over eastern chokepoints, then it is not difficult to imagine a future in which energy becomes an even sharper geopolitical instrument. That would not mean total American control of global oil, but it would mean an ability to influence supply routes, pricing pressure, and economic vulnerability in ways few empires in history have ever possessed.
Such a scenario would place China in particular under long-term strategic stress. Its factories, transport networks, petrochemical industries, and export machines all depend on steady access to imported energy. Russia too would face increasing pressure if maritime and sanctioned routes became narrower, longer, costlier, or more politically constrained. Even U.S. allies would not be immune. Any state that disobeyed Washington on key matters could face indirect coercion through a security system that determines how safely and cheaply energy reaches world markets.
That, then, is the terrifying possibility hidden beneath the daily headlines. The war on Iran may not simply be about uranium enrichment, missiles, democracy, or the suffering of the Iranian people. It may be about who commands the valves of the global economy. It may be about transforming maritime geography into a mechanism of strategic obedience. It may be about giving one power the ability, in moments of crisis, to squeeze rivals, discipline allies, and bend energy-dependent economies toward submission.
And that is why this conflict is so dangerous. If Russia and China conclude that Iran is not merely a regional partner but the front line of a broader struggle over the future control of Eurasia’s energy lifelines, then the war may not remain confined to Iran at all. It could widen not because anyone desires world war, but because the consequences of inaction may appear even more catastrophic than the risks of confrontation.
The world therefore stands before a historic choice. Either the major powers step back and preserve a plural, negotiated, and open energy order, or they continue down a path in which chokepoints become instruments of domination and commerce becomes a hostage of force. If the second path prevails, then the attack on Iran will be remembered not as a regional war, but as the opening move in a far larger campaign to place the world’s economic bloodstream under strategic command. And if that day comes, nations will discover too late that oil was never just a commodity. It was power, mobility, sovereignty, and survival. Whoever controls its pathways does not merely influence the market. They hold a hand on the throat of the modern world.

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Denmark says Russian warship fired flares at military helicopter

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Denmark has accused a Russian warship of firing two emergency flares at one of its helicopters while it was tracking the vessel in the Baltic Sea.

The Danish government has summoned the Russian ambassador over the incident, which it said happened during a “routine” monitoring operation on Monday.

Prime Minister Mette Frederiksen branded the Russian action “reckless” and said it was designed to “intimidate and divide”.

Russia said it would “thoroughly investigate” the incident but accused Danish helicopters of making “dangerous manoeuvres” near Russian warships.

It came on the same day that Nato forces shot down a drone over Lithuania in the latest security scare on the alliance’s eastern flank, where tensions remain high amid Russia’s full-scale invasion of Ukraine.

In a statement detailing the incident in the Baltic Sea, the Danish armed forces said: “One of the air force’s Fennec helicopters was today fired at with flares during a routine photographic operation of a Russian frigate, which was located in international waters off Gedser.”

Of the two flares fired at the helicopter, one passed close to it, the statement added.

The Danish foreign ministry described the incident as “completely unacceptable”.

Danish Foreign Minister Lars Lokke Rasmussen accused Russia of “gradually shifting the boundary for what they consider acceptable behaviour”, adding: “That is something we cannot accept.”

In a statement, Russian ambassador Vladimir Barbin said Moscow would “thoroughly investigate all the circumstances of the incident” but accused the Danish helicopter of carrying out “provocative actions”.

Barbin said this was “not the first time that Danish Air Force helicopters have carried out dangerous manoeuvres near Russian warships”.

He said he had complained about a similar incident last year, adding that the latest event showed that “communication problems lie not with the Russian Navy’s vessels, but with the Danish side”.

Russia’s behaviour was “reckless and dangerous,” the President of the European Commission Ursula von der Leyen said in a post on social media.

This incident – together with the drone over Lithuania – was “part of a broader pattern of Russian aggression and provocation against Europe”, she added.

Danish Defence Minister Jeppe Bruus told Reuters no attempt to make contact with helicopters had been made by the frigate’s crew.

Map of the Baltic Sea region showing Denmark, Lithuania, Poland and Russia. A marker indicates the location of a helicopter incident in international waters off Gedser, near Denmark's southern coast.

Overnight, Nato fighter pilots shot down a drone that entered Lithuania’s airspace.

Authorities said the drone likely entered southern Lithuania, near the second-largest city of Kaunas, from neighbouring Belarus shortly after midnight on Tuesday.

The origins of the drone have yet to be determined, the Lithuanian national crisis management centre said, but the country’s president pointed to increased Russian aggression in recent months.

President Gitanas Nausėda wrote on X: “With Russia intensifying its aggression against Ukraine, such readiness is vital for our region. Together with our Nato Allies, Lithuania will defend its airspace.”

Lithuania shares a large part of its southern and eastern border with Belarus, a key Russian ally.

Poland also announced there had been “aviation operations” in its airspace on Monday night “due to the activity of Russian Federation’s jet-powered unmanned aerial vehicles conducting strikes on Ukrainian territory”.

It said the overnight operations were of a “preventive nature” and aimed at “securing airspace and its protection, especially in areas adjacent to threatened regions”.

Nato jets have been scrambled several times to shoot down stray Ukrainian drones that have crossed into Baltic countries Estonia and Latvia this year.

Taken From BBC News

https://www.bbc.com/news/articles/cwn8mjl31p5yo

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Iran Checkmates the Hormuz Bypass

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Paris (Imran Y. CHOUDHRY) :- Former Press Secretary to the President, Former Press Minister to the Embassy of Pakistan to France, Former MD, SRBC Mr. Qamar Bashir analysis : The war with Iran is no longer merely a contest of missiles, aircraft and naval power. It has become a struggle over the arteries through which the world’s energy flows. For months, the United States, Israel and regional producers have searched for ways to reduce dependence on the Strait of Hormuz. Israel has proposed pipelines carrying Gulf energy westward to its Mediterranean ports, while other projects envisage moving Iraqi and regional oil toward the Mediterranean. But events of recent days demonstrate a fundamental weakness in this strategy: bypassing one vulnerable chokepoint does not abolish geography. It merely transfers the vulnerability somewhere else.
Israeli Prime Minister Benjamin Netanyahu made his vision explicit in March. He proposed oil and gas pipelines running westward across the Arabian Peninsula to Israeli Mediterranean ports, arguing that such infrastructure could eliminate dependence on maritime chokepoints.
The broader search for alternative corridors has also involved proposals linking Iraqi energy resources with Syria’s Mediterranean coast. These projects potentially create enormous commercial opportunities for transit countries, ports, construction companies and international energy corporations. The contest, therefore, is not simply over oil. It is increasingly over who will build, operate and influence the infrastructure carrying that oil.
Saudi Arabia already possessed the most important working example of the bypass strategy. Its 1,200-kilometre East-West Pipeline, or Petroline, carries crude from the kingdom’s eastern producing regions across the Arabian Peninsula to Yanbu on the Red Sea. As Hormuz became increasingly dangerous, this pipeline became enormously important. Roughly four million barrels per day were moving through the system, allowing Saudi Arabia to export without sending those barrels through Hormuz.
Then came the drones. Saudi authorities say several drones launched from Iraqi territory attacked the East-West Pipeline system in the Riyadh and Madinah regions. The attacks caused injuries and damage and forced authorities to shut the pipeline as a precaution while technical teams assessed its safety. The entire 1,200-kilometre pipeline did not need to be physically destroyed. A sophisticated energy artery depends upon pumping stations, controls and associated infrastructure. Damage at strategically important points can interrupt the entire flow.
The economic consequences could be enormous. Saudi Arabia reportedly has enough exportable crude stored at Yanbu to maintain current flows for only about five to seven days if Petroline remains closed. After that, as much as four percent of global oil supply could be jeopardised.
Repair estimates remain uncertain, ranging from days to weeks. The important strategic lesson is therefore not whether Petroline can eventually be repaired. Of course it can. The lesson is that the principal functioning escape route from Hormuz has itself demonstrated its vulnerability.
This is where Iran’s strategic depth becomes important. Tehran does not require conventional naval supremacy over every kilometre of Hormuz to exercise extraordinary leverage there. Commercial shipping operates according to risk. One successful missile or drone attack can force shipowners, insurers and cargo operators to reconsider whether a voyage remains commercially acceptable.
The same logic increasingly applies at the other end of the Arabian Peninsula. Yemen’s Iran-aligned Houthis have advanced along the Red Sea coast and reached Perim Island, situated inside Bab el-Mandeb—the narrow gateway connecting the Red Sea with the Gulf of Aden. Saudi Arabia’s Petroline may bypass Hormuz by terminating at Yanbu, but tankers sailing from the Red Sea toward Asian markets still confront the geography surrounding Bab el-Mandeb. The alternative route therefore possesses a chokepoint of its own.
This is what I describe as Iran’s strategic checkmate of the Hormuz-bypass concept. I do not use “checkmate” to mean that Iran possesses uncontested sovereignty over two international waterways or has defeated American military power. My argument is economic and strategic. Iran and forces aligned with it possess sufficient capabilities across different theatres to make alternative energy routes vulnerable. In commercial transportation, the ability credibly to threaten passage can sometimes be almost as consequential as physically occupying it.
The deeper story concerns money and power. Every new pipeline creates winners. Construction companies receive contracts. Energy corporations acquire projects. Transit countries collect revenues. Ports gain business. Investors obtain returns. Countries hosting terminals acquire additional strategic importance. Israel’s proposed Mediterranean corridor could enhance its position as an energy bridge. American companies participating in Middle Eastern energy and infrastructure projects can obtain major commercial opportunities. Regional governments, meanwhile, seek diversified routes that reduce their dependence on waterways vulnerable to war.
Yet the cruel paradox is that Middle Eastern oil-producing countries risk carrying a disproportionate share of the immediate damage. Their pipelines become targets. Their export terminals require protection. Their production revenues become vulnerable to interruption. Their cities face missile and drone threats, while insurance and transportation costs rise. Saudi Arabia’s present predicament illustrates the danger: an infrastructure system designed to provide strategic security from Hormuz has itself become exposed to the expanding battlefield.
The widening conflict around Bab el-Mandeb demonstrates another limitation of purely military calculations. A superpower can deploy aircraft carriers, destroyers, missile defences and tens of thousands of personnel, yet commercial shipping requires something more difficult to guarantee: confidence. A shipping company contemplating a billion-dollar vessel and valuable cargo does not ask merely which navy is stronger. It asks whether the ship can complete its voyage safely, whether insurance remains available and whether the potential profit justifies the possibility of catastrophic loss.
That is why geography continues to defeat attempts to declare Hormuz irrelevant. A pipeline across Saudi Arabia substitutes pumping stations and hundreds of kilometres of exposed infrastructure for the strait. A Syrian corridor would traverse another politically sensitive landscape. An Israeli Mediterranean corridor would require enormous investment, security and regional cooperation. And Red Sea exports must still confront the security environment surrounding Bab el-Mandeb. There is no magic line on a map capable of removing geopolitical risk.
The Iran war has consequently evolved into something much larger than the conflict with which it began. It is simultaneously a military confrontation, an energy war and a contest over the future architecture of global petroleum transportation. The question is no longer simply who produces Middle Eastern oil. Increasingly, it is who builds the pipelines, controls the ports, protects the waterways and possesses leverage between the wellhead and the consumer.
The architects of alternative corridors hoped to diminish Iran’s greatest geographical advantage by diminishing Hormuz itself. Instead, the expanding conflict is demonstrating that energy routes cannot simply escape geography. Close one chokepoint and another becomes indispensable. Build a pipeline and the pumping stations become strategic assets. Shift exports toward the Red Sea and Bab el-Mandeb assumes greater importance.
That is the strategic irony of this war. The attempt to make Hormuz irrelevant may instead have demonstrated just how difficult it is to make Iran’s geography irrelevant. The map of the Middle East has not changed. What has changed is the number of places on that map where the world’s energy lifelines can now be threatened.

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After Military Failure, Trump’s Economic War on Iran

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Paris (Imran Y. CHOUDHRY) :- Former Press Secretary to the President, Former Press Minister to the Embassy of Pakistan to France, Former MD, SRBC Mr. Qamar Bashir analysis : The geopolitical landscape has witnessed few spectacles as paradoxical as the recent confrontation between the coalition of the United States and Israel against the Islamic Republic of Iran. What was predicted by Western military analysts and policymakers to be a swift, decisive campaign—a “shock and awe” reminiscent of the opening salvos of the 2003 Iraq War—has instead morphed into a historical anomaly.

It is a conflict defined not by the victor’s triumph, but by the hubris of the aggressor being dashed upon the rocks of asymmetric resilience. The United States, the sole superpower possessing a military budget exceeding 1.5 Trillion annually—larger than the next 20 countries combined—has been forced into a humiliating strategic retreat.

After failing to achieve a single operational objective, the rhetoric has shifted from “military obliteration” to “economic annihilation.” This pivot from Tomahawks to Treasury sanctions is not a sign of strength; it is the death rattle of a failing hegemonic strategy, a threat as hollow as the bombs that failed to subdue Tehran.

In the lead-up to the conflict, the rhetoric emanating from Washington and Tel Aviv was characterized by a certainty that bordered on the biblical. Officials promised the “degradation of Iran’s military infrastructure to the Stone Age,” invoking imagery of an assault more severe and more comprehensive than the firebombing of Dresden or the atomic strikes on Hiroshima and Nagasaki.

After having failed to achieve even a single declared objective of waging war against Iran, the United States found itself in a position unique in its modern history: it had not lost a war tactically, but it had failed to win strategically. Iranian uranium enrichment, far from being halted, reportedly accelerated in response to the strikes, with the International Atomic Energy Agency (IAEA) confirming that stockpiles of 60% enriched uranium had risen by over 15% during the conflict window. The “daunting military machine” was halted not by Iranian nuclear parity, but by the cost of persistence.

This military failure has profound implications. For three decades, the United States has relied on the specter of its military supremacy to police the global order. The failure to bend Iran—a nation whose military budget is approximately $24.6 billion, a mere fraction of America’s—breaks the spell of invincibility.

It demonstrates that a nation-state can withstand the full kinetic might of the U.S. military if it possesses dispersed infrastructure, a decentralized command structure, and a popular willingness to absorb punishment.

Iran’s successful enforcement of maritime control over the Strait of Hormuz serves as a case study in asymmetric deterrence. Despite the presence of the U.S. Navy’s Fifth Fleet, which includes aircraft carriers and nuclear submarines, Iran’s swarm tactics of fast-attack craft and shore-based anti-ship ballistic missiles effectively checked U.S. freedom of navigation. The sight of Chinese oil tankers transiting the Strait under Iranian escort, unchallenged by the U.S. blockade, was a symbolic dagger in the heart of American naval supremacy.

Having failed on the kinetic battlefield, the United States has pivoted to the economic battlefield. The new executive order announced by the President promises “excruciating economic pain never seen before in the history of humankind.” This is a bold claim.

It is, however, a rhetorical escalation of a campaign that has been running since 1979. Iran has lived under some form of U.S. sanction for over four decades. The “Maximum Pressure” campaign initiated by the first Trump administration in 2018 aimed to drive Iranian oil exports to zero. While it succeeded in plunging exports to around 400,000 barrels per day (bpd) at its peak, it did not collapse the government.

Today, Iran has not only recovered but has adapted. Current estimates place Iranian oil exports at over 1.6 million bpd, with the vast majority flowing to China. The threat now is to extend “secondary sanctions” to any nation buying Iranian oil. However, the efficacy of this threat is undermined by the very structure of the global economy that the United States helped create: the petrodollar system.

The U.S. Treasury’s ability to sanction hinges on the centrality of the Dollar and the SWIFT messaging system. Yet, the infrastructure of evasion is now mature. Iran has spent 30 years perfecting the “black market” of oil. The system described by intelligence analysts—where proceeds never touch a direct Iranian account but are routed through third-party shell companies in Asia, often utilizing Chinese Yuan—has rendered the U.S. financial radar partially blind.

Furthermore, Iran’s strategic integration into the BRICS bloc (Brazil, Russia, India, China, South Africa, and new members like the UAE and Egypt) provides a lifeline. The BRICS New Development Bank and the Contingent Reserve Arrangement are actively working on a unified payment system—the “BRICS Pay”—designed to bypass SWIFT.

China’s Cross-Border Interbank Payment System (CIPS) has seen a 30% year-on-year increase in daily processing volume. When Iran sells oil to China and receives payment in Yuan via CIPS, the transaction bypasses the New York banking system entirely. The “weaponization” of the dollar has simply accelerated the global de-dollarization trend; central banks worldwide currently hold 58% of their reserves in USD, down from 71% two decades ago.

The domestic economic situation in the United States further undermines the credibility of this new sanctions regime. The President’s assertion of a “flourishing economy” rings hollow against the data. The U.S. national debt has surpassed $40 trillion—a staggering figure that is five times the federal government’s annual receipts of approximately $8 trillion.

The Congressional Budget Office (CBO) projects that interest payments on this debt will soon consume 20% of all federal spending, rivaling the defense budget. This fiscal fragility manifests in tangible economic pain: recent data revealed a loss of 27,000 jobs in a single month, and inflation, while moderating, remains above the Federal Reserve’s 2% target, exacerbated by supply chain disruptions caused by the war.

The collapse of Walmart’s stock—an 8% single-day drop that erased nearly $45 billion in market capitalization—is a bellwether. Walmart represents the American consumer base; its decline signals a shift from spending to saving, a precursor to recession. A nation drowning in debt and teetering on a consumer downturn lacks the economic oxygen to sustain a protracted global trade war against nations trading with Iran.

Finally, the geopolitical map renders this new sanction regime diplomatically unsustainable. The nations refusing to align with U.S. economic dictates represent over half of the world’s population.

China and India continue to buy Russian and Iranian energy because it is economically rational. Brazil, led by a leftist government, has no interest in enforcing American secondary sanctions against its own agricultural or industrial sectors.

The global South, observing the humanitarian catastrophe in Gaza and the reckless military gambit in Iran, views the U.S. not as a moral leader but as a destabilizing force. The threat to sanction any nation trading with Iran is an ultimatum the world is no longer willing to accept.

The era of the “American Century” ended not with a bang in the deserts of Iran, but with the realization that economic coercive power, like military power, is finite. The United States has failed to win the war; it is equally likely to fail in winning the peace. The pivot to “economic excruciation” is not a strategy for victory, but a coping mechanism for a superpower struggling to accept the limits of its own waning influence.

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