Iran. Definitely about liberation, I swear.

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(Edited)

Though not a particularly profound statement:

Follow the money

has always stuck with me since the time I first heard it. In context, it's essentially pointing out that whatever heroic or just cause is being tacked onto any global event, really all one needs to do is follow the money to find the real incentives.

This has stood true pretty much entirely in the decades following my first hearing of it as a naive teen.

The kidnapping of Venezuela's dictator was no exception. Sure, the people may celebrate that he got his comeuppance, but it was openly admitted by Trump that it was about the oil, which USA would be ceasing and controlling henceforth.

It's a low quality, thick and sticky oil, something that needs special gear to process - gear which the USA already happens to have.

And, of course, Iran is no exception either.

In the exact same way, we celebrate or argue about removing a despotic regime, power vacuums, installing democracies, liberating the oppressed. This takes all the headlines.

But come on. Follow the money.

The Strait of Hormuz, lose, lose, lose.

This is the little waterway, a bottleneck that runs through the area which Iran frequently threatens to shut down with landmines and all that. It has now been practically all but shut down for who knows how long.

image.png

Global oil prices have skyrocketed as a result.

Who stands to gain and lose from this? Let's see (I'm sure you can all guess).

China: Lose

China is Iran's best customer, buying up about 90% of all of Iran's oil. 50-60% of all China energy goes through the Hormuz strait.

China has some buffer supplies, but if this goes prolonged for more than a couple of months, Chinas factories will need shutting down and energy prices will skyrocket unless they can rapidly flip to Russian supplies - unlikely given the complexity and time its taking to build those pipelines.

China can either get involved and risk escalating, or they can just keep quiet and take the hit. It remains to be seen.

Japan, Korea, India: Lose

They all rely on this energy supply somewhat more than China and have less of a buffer or a way out. Probably not significantly worse off than China, but a fair amount worse. Japan is probably hit the hardest being an Island with almost no resources of any kind.

EU: Lose

Yeah, quite a bit of their energy including LNG comes from this area. Having already cut off Russian supplies out of spite, they don't really have many other sources to turn to.

UK: Lose

Probably going to fare better than the EU, as we are decently diversified, getting the majority of energy from USA and Norway, with a bit of LNG from Qatar. That being said, we won't be immune to the global oil price surge.

Just what we need; more price hikes.

Is anyone a winner?

Well, you might notice the obvious absentees from the above list.

USA

Well, well, well. What a happy coincidence!

Russia

Obviously. Their entire existence is oil. This probably means bad news for Ukraine, incidentally.

Finland

Makes one suspicious of those Finns, quietly getting along amongst themselves up there.

Secretly becoming richer, richer, RICHER THAN EVER!!! uhh, ahem, I mean... we just like to stare at the northern lights, leave us out of it.

Riiiiiight.

More of the OPEC cartel would also stand to benefit of course, but being proximally so close to Iran, they're all getting bombed as we speak which is hard to put down as a 'win'. Perhaps more glaringly problematic would be the fact that all their sales are exported through the Hormuz strait, too.

Ultimately, the USA didn't start this off for any act of righteous Saviour of the Persian people. They didn't do it to end a high risk nuclear power, or to help out their Israel buddies who deserve a homeland blah blah.

They did it because they can become immensely wealthy at the expense of basically everyone else; as has always been the case since they destroyed the British Empire with the same behaviour.

Of course, it also shafts China which is a secondarily big win for the USA.

Follow the money.



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Dear @mobbs !
It's hard for you to believe that war will transform Iran into a democratic country! Perhaps Iran will fall to the bottom of civil war!

I agree with your argument that the United States would have started a war to cause world oil prices to skyrocket!

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I'm not sure democracy is the right answer, even. We in the West always believe our model works for everyone, just because it works for us. I think we should keep our noses out of how they run the country if the current regime should fall... but then... power vacuum chaos?? sigh.

This is gonna be a long journey

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Dear @mobbs !
I agree with you!
I don't think Western-style democracy and capitalism will fit the Islamic world or the Indian subcontinent!

They lived in a civilization different from Western civilization for thousands of years. So, Iran is more likely to start a civil war than become a democracy!

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In australia they're warning us to fill up our cars but I find this ridiculous - if you go through a tank in a week driving to work, then the prices are going to be up again when you refill next week, so all you've done is fuel panic. It's knock on cost of living expenses that are going to go up again. Makes me want to go and stockpile rice, not fuel. But I think we're relatively stable. Thank fuck my husband didn't decide to go to the UK via Dubai like he planned this week. I'm glad we live where we do right now.

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Yes yes, everyone is jealous of Australians, we get it -_- lol.

Yeah people starting to stock up on tankers of gas is hardly going to help when your groceries are going up regardless, the fuel for the car will be the least of your concerns!

That being said I figured Australia would be fairly decently shielded from any energy embargos etc? Just use its own domestic supplies - and the rise in costs will likely benefit Australia as an overall exporter.

I guess I only know the surface level things though, always more complicated.

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We don't really have domestic supplies of oil - 90 percent we import. We import a LOT of things that have an impact on domestic production, so though we're a little more shielded than most, we'll feel it too. I can't pretend I know tons about it though - more surface level like you i guess!

BTW we did fill up on the way home and will be filling up the other cars tomorrow. You know, just in case :P

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Huh i'm quite surprised by that if you're right, I assumed Aussie was exporting a ton and using its own, too.

Since I'm in China maybe I should start stocking up too even though I don't drive lol.

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Well if you don't drive you're fine. I've been watching old Land Rovers groups in England (we have one) stressing about how much the fuel is already going up.

Where in China are you? Are you originally from there?

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Your view is perhaps to correct one.
The USA first made sure they have enough oil itself, ie own production with some surplus being sold to others.
Perhaps a bit of a coincidence, but perfect for the plans rolled out by mister Trump.

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I’m curious...

Who exactly granted anyone the authority to control a strait, an ocean, or the flow of trade to begin with?

At what point did a piece of water become something a government can threaten to close?

If a private group blocked a route and demanded terms under threat of force, we’d call that piracy, wouldn’t we?
So what transforms it into “geopolitics”? A flag? A vote? A press conference?

I’m just trying to understand the moral conversion process.

if participation in this global arrangement isn’t something individuals can opt out of without penalty, in what sense is it voluntary?
So...
Is the real debate about oil profits, or about why force-backed control is treated as the default setting for civilization?

-A.W.

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