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The Geopolitical Earthquake of the Iran War

26 0
12.10.2026

Photograph Source: NAVCENT Public Affairs – Public Domain

The Iran War has claimed thousands of lives, most of them in Iran itself. The war has cost Iran as much as $300 billion in economic damage. For its part, the Pentagon spent nearly $44 billion through mid-September to wreak that amount of havoc. For advocates of the war—but no one else—that’s a good return on investment.

Because of the closure of the Strait of Hormuz and disruptions in shipments of oil and gas, people all over the world have experienced the war through increased prices for energy, transportation, and food. The ripple effects through the global economy of record high prices for diesel have been devastating for farmers, truckers, and the mining sector. Back in August, the International Monetary Fund warned that the war, if it continues, could trigger a global economic recession.

And the war is continuing—even though Iran and its adversaries have at least temporarily stepped back from direct attacks and traffic through the Strait of Hormuz has recovered to a certain extent (Iranian shipments excluded). At the UN General Assembly last month, Donald Trump promised (yet again) that he would annihilate Iran if the country doesn’t agree to some kind of peace deal. Despite the fact that the Iranian economy is reeling as a result of war and sanctions, which the government in Tehran is now acknowledging, Iranian leaders have pledged not to surrender.

As if these effects aren’t enough, the Iran War is also setting into motion a number of other geopolitical transformations—in Yemen, Iraq, Lebanon, Syria, the Gulf states, and even further afield. Trump and his Israeli partner-in-crime Benjamin Netanyahu expected a quick war, a tidy regime change in Tehran, and the collapse of its “axis of resistance.”

Instead they now face a Pandora’s boxful of unintended consequences.

Yemen’s Forever War

Not far from the Strait of Hormuz, on the other side of the Arabian Peninsula, lies Bab al-Mandab. This chokepoint, which controls traffic in and out of the Red Sea and the Suez Canal at its northernmost point, is responsible for 10 percent of global trade. During the closure of the Strait of Hormuz, Saudi Arabia redirected the flow of its oil westward through a pipeline to its Red Sea ports, thus increasing the importance of Bab al-Mandab.

But now the Saudis face attacks from the Houthis, a group of Yemenis allied with Iran that have been operating out of an enclave in the north of the country along the Red Sea and not far from the strait. Beginning last decade, the Saudis backed the government of Yemen in its attempts to defeat the Houthis and unify the country, an effort that ultimately failed and........

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