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Former CIA analyst warns US-Israel ‘miscalculation’ in Iran has triggered global economic chokehold

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In an expansive and sobering assessment of the escalating conflict in Southwest Asia, Larry Johnson, a former CIA intelligence analyst and veteran counter-terrorism official, has characterized the joint US-Israeli offensive against Iran as a catastrophic strategic miscalculation. Speaking with Professor Hasan Ünal on the Strategic Compass program, Johnson argued that Washington and West Jerusalem have fundamentally misinterpreted Iranian internal stability and military resilience, precipitating a global economic crisis that now threatens to plunge the West into a prolonged depression.

The discourse, occurring in the wake of what Johnson termed a “murderous attack” on February 28, centers on the assassination of Iranian leadership and the subsequent closure of the Strait of Hormuz. As the conflict enters its 14th day, Johnson warns that the geopolitical architecture of the region is being irreversibly dismantled, with Türkiye potentially occupying a precarious position on the “next on the list” of targets for Israeli subversion.

“A complete miscalculation on the part of the United States and Israel”

Opening the mülakat, Professor Ünal framed the current hostilities as “straightforward naked aggression” by the US and Israel, noting that the theater of war appears to be deviating significantly from the aggressors’ original blueprints. Johnson concurred, noting that the intelligence community in Washington fell victim to its own manufactured narratives.

“They underestimated the military capability of Iran,” Johnson stated, adding that the Pentagon and the Mossad “overestimated their own ability to try to destroy the leadership in Iran.” He revealed that US planners labored under the “false belief” that the elimination of the Supreme Leader and high-ranking IRGC officials would trigger a popular uprising. This assumption, according to Johnson, was based on flawed polling data funded by the CIA through the National Endowment for Democracy (NED) and USAID.

“They had funded a series of public opinion polls done over the Internet that claimed that 80% of the Iranian population were opposed, violently opposed to the Islamic Republic,” Johnson explained. “Well, it turned out that was a lie.” He cited counter-polling from the University of Maryland, conducted via traditional telephonic methods, which indicated that the regime maintained roughly 70% support. “There is no language to justify what was done other than it was an act of treachery, it was a barbarous act,” Johnson asserted, comparing the current US-Israeli conduct to the war of aggression for which the Nazis were tried at Nuremberg.

“Do the Turks realize you’re next on the list?”

A significant portion of the conversation focused on the implications for Ankara. Despite the “barking dog seldom bites” proverb cited by Professor Ünal to describe Turkish perceptions of Israeli rhetoric, Johnson issued a stark warning. He suggested that if Israel survives its current confrontation with Tehran, it will pivot its “vicious, out of control” state apparatus toward senior Turkish leadership.

“Israel is the most vicious, out of control state political organization in the world,” Johnson remarked. “There is no other country that has so wantonly and regularly attacks and kills others, in particular murdering civilians in Lebanon, in Syria, in Iran, in Yemen.” He dismissed the notion of Türkiye being able to remain insulated from the chaos, arguing that the Israeli state views Türkiye as a strategic obstacle to be subverted rather than a partner to be respected.

Johnson noted that the US has long used Türkiye for its own purposes without regard for Ankara’s long-term interests. “Türkiye is somebody to be used for our purposes,” he said, reflecting the prevailing view in Washington. He cautioned that any Turkish cooperation in “crushing” Iran would not be met with Israeli gratitude, but with further subversion. “They’re going to subvert you, they’re going to destroy you, they’re going to get rid of you,” he warned, characterizing President Recep Tayyip Erdoğan’s attempts to manage the Israelis as “foolish.”

“Donald Trump is under the control of the Zionists”

Addressing the domestic political drivers in the US, Johnson reiterated his controversial stance that the American government remains “under occupation” by the Israeli lobby. He pointed to the frequent visits by Benjamin Netanyahu to Washington—seven since Donald Trump took office—as evidence of the administrative hierarchy being given “instructions.”

“Donald Trump is under the control of the Zionists, as are many members of the US Congress,” Johnson claimed. He argued that for 46 years, the US and Israel have propagated the “absolute false” claim that Iran is the world’s leading sponsor of terrorism. Drawing on his experience at the Bureau of Counterterrorism and data from the CIA and the National Counterterrorism Center, Johnson argued that the primary drivers of international terrorism over the last quarter-century have been Sunni jihadist elements, specifically Takfiri and Wahhabi groups often linked to Saudi billionaires, rather than Tehran.

“Iran is absolutely not the number one sponsor of terrorism, not even anywhere close,” Johnson said. He highlighted Iran’s historical restraint, noting that during the eight-year war with Iraq in the 1980s, Tehran refused to retaliate with chemical weapons despite being targeted by Iraqi gas provided by the US. He credited this to the “spiritual guidance” of the leadership which viewed such weapons as “a sin against Allah.”

“Grabbed the world economy by the throat and is choking it”

The closure of the Strait of Hormuz by Iran has transformed the military conflict into a global economic siege. Johnson reported that even in the US, which is largely energy independent, the psychological and market effects are acute. He cited a 54% increase in gasoline prices at a Florida station within a single week as a harbinger of things to come.

However, Johnson identified a more “dangerous cut off” than petroleum: the supply of urea and nitrogen for fertilizer. “People can live without gasoline. You can walk instead of drive your car… but no fertilizer, no food,” he said. “Famine, starvation is now a definite possibility six to seven months from now.” He predicted that oil could reach $200 a barrel before a collapse in demand triggers a global depression.

Iran’s strategic leverage, Johnson argued, is now absolute. “Iran’s not going to let go of its chokehold. Why should it?” he asked, noting that Tehran is now in a position to demand reparations, the total lifting of sanctions, and ironclad security guarantees that it will never again be attacked by the US or Israel.

“Iran’s military and defense sites are built into mountains… basically impervious to Western missiles”

On the tactical front, the war has exposed the limits of both Western and Eastern technology. Johnson noted that while a Chinese-provided air defense radar system reportedly failed in a combat environment, the Iranian military has successfully downed sophisticated US MQ-9 Reaper and Israeli Hermes drones.

He clarified that while the US JASSM (Joint Air-to-Surface Standoff Missile) has inflicted damage on Iranian infrastructure, it has failed to disarm the nation. “Iran is three times the size of Ukraine,” Johnson reminded the audience. He noted that unlike Israel, which has 55% of its population concentrated in just two cities—Haifa and Tel Aviv—Iran is vast, with its critical assets buried deep underground.

“Iran doesn’t have to target a hundred different places… it only has to worry about two places, Haifa and Tel Aviv,” Johnson said. He revealed that at least one US base in the Persian Gulf has completely “run out of air defense cover,” leaving personnel vulnerable. “Iranian missiles can penetrate and hit them at will.”

“Russia is in a position… the world now needs it and needs it desperately”

The primary beneficiary of this regional implosion, according to Johnson, is Moscow. With the Persian Gulf neutralized, Russia remains the only global power with ample supplies of oil, liquid natural gas, and fertilizer. “Russia is in a position… the world now needs it and needs it desperately, and I’m sure Russia will take advantage of that,” he said.

In his concluding remarks, Johnson emphasized that the era of US hegemony in the Middle East—characterized by “milking” Gulf Arab states for decades under the guise of protection—has ended. The failure to stop Iranian missile barrages and the inability to protect Israel’s “multi-layered” air defense system from Hezbollah’s four-hour saturating strikes have shattered the perception of US invincibility.

“The United States is Goliath,” Johnson concluded. “And now Iran, like David, has hit the United States right between the eyes with the stone and the United States has collapsed.”

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Likud weighs rotation premiership between Netanyahu and Eisenkot

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Officials within the Likud party and Benjamin Netanyahu’s inner circle are analysing a scenario in which the formation of a narrow coalition proves impossible and the political system enters a deadlock.

According to a report in The Jerusalem Post, one option being discussed by Likud officials in such a scenario is a broad coalition government featuring a rotation of the premiership between Netanyahu and Yashar party leader Gadi Eisenkot.

At this stage, the primary question occupying analysts is what Netanyahu could offer to persuade Eisenkot to establish a rotation government with him, and how he could convince him that the rotation agreement would be honoured this time, following the precedent set during the Netanyahu-Benny Gantz government.

Among the possibilities raised in Likud’s closed-door discussions is nominating Netanyahu for the presidency in the future.

This would create both an agreed political exit route for Netanyahu and a political guarantee that the premiership would ultimately pass to Eisenkot.

At this stage, these discussions represent strategic assessments and scenario analyses surrounding Netanyahu’s “broad coalition” campaign ahead of the elections.

Likud officials believe that Netanyahu could conclude the election without reaching 61 seats, but they also rely on the likelihood that the opposition bloc will lack sufficient seats to form a government.

If neither side can form a coalition, officials anticipate that pressure to avert a new election could bring the possibility of a unity government back to the agenda.

Eisenkot is viewed as one of the primary potential partners for such a move, provided he enters the election at the head of a major force within the anti-Netanyahu bloc.

According to the scenario discussed in Likud, one potential arrangement would involve Netanyahu assuming the premiership first under the rotation framework and subsequently handing the post over to Eisenkot.

However, the most obvious obstacle to such a step is the crisis of confidence caused by the rotation government established with Gantz in 2020.

Eisenkot would require a mechanism ensuring that he does not find himself in the identical position Gantz occupied at that time: namely, becoming a partner in a rotation government agreement that was never implemented.

In this context, the possibility of the presidency is also raised in the discussions. Under this scenario, the date of the leadership handover could be tied to Netanyahu moving to the President’s Residence following the conclusion of Isaac Herzog’s term in office.

Those raising this possibility believe such a step could offer Netanyahu an agreed political destination after the end of his term as prime minister, whilst simultaneously providing Eisenkot with greater confidence that the rotation will take place.

Even within Likud, officials emphasise that the presidency scenario remains far from a finalised plan, with some describing it as a remote possibility.

Nevertheless, the matter is already being discussed as part of efforts to find a mechanism capable of overcoming the trust deficit.

According to an assessment voiced within Likud, if the presidency scenario arises in the future, Netanyahu’s criminal trial would need to be concluded.

From a legal perspective, the argument in these discussions is that no automatic legal barrier prevents an individual standing trial from running for the presidency.

The real complexity would lie in the public and political dimensions.

Proponents of this scenario believe that it would also be possible to present such a step to the public as part of a broader arrangement that would end Netanyahu’s premiership and enable the formation of a stable government.

This discussion also explains the line Netanyahu has advocated in recent weeks regarding the necessity of establishing a “broad government”.

Likud officials assess that Netanyahu understands a 61-seat right-wing government is not a guaranteed outcome, and therefore believes it is important to prepare the public and political ground in advance for the possibility of incorporating figures from the opposition camp into the government after the elections.

If the results show that neither bloc holds a majority, Netanyahu could argue that voters did not deliver a decisive victory to either side, and that under these conditions there is no justification for excluding a large segment of the public from the government.

However, the Gantz precedent will remain at the heart of all future discussions. Likud officials are aware that Netanyahu’s political promise alone will not suffice.

For this reason, alongside the presidency concept, more practical mechanisms are being examined in political discussions: commitments regarding the budget and no-confidence votes, legal mechanisms designed to make breaching the agreement difficult, and even the possibility of depositing a letter of resignation with a trustee that would take effect should Netanyahu fail to fulfil his commitments.

Likud officials also point to a fundamental difference between such a scenario and the Netanyahu-Gantz government.

If election results do not provide Netanyahu with an independent majority and he must rely on Eisenkot to keep the government afloat, this dependency would itself become another component of the guarantee system.

Unlike a situation where the partnership could be dissolved and an alternative coalition formed, a breach of the agreement in this scenario could lead to the collapse of the entire government. The number of seats Likud secures will also prove decisive.

In light of current expectations, Likud officials estimate that winning more than 25 to 26 seats would be presented as a success, allowing Netanyahu to argue that he remains the leader of a major political camp that cannot be ignored when forming a government.

Conversely, a significantly weaker result would undermine his ability to demand the first turn in the rotation and shift the balance of power in future negotiations.

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US begins returning staff to Middle East diplomatic missions

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The US administration is beginning to send personnel back to several diplomatic missions in the Middle East that had been evacuated or downsized due to tensions with Iran.

Sources speaking to Reuters stated that posts in Lebanon, Israel, Saudi Arabia, and Baghdad in Iraq are among the locations where staff will return.

They added that family members will also be permitted to return to US missions in Riyadh.

The move indicates that Washington views the near-term risk of escalation in the conflict with Iran as lower.

However, some embassies will initially operate below full capacity.

Sources stated that certain embassies will initially operate without exceeding 85% of their authorised staffing levels.

One source said the return of some personnel is expected to begin this week.

Following the start of joint US-Israeli strikes against Iran on 28 February, the US had withdrawn personnel from its embassies across the Middle East.

Some embassies in Gulf Arab states, including Saudi Arabia and Kuwait, were targeted by Iranian retaliatory actions, leading to the temporary closure of those embassies.

Since then, although the US naval blockade on Iranian ports remains in place, the Strait of Hormuz—vital for oil and commodities shipping—remains closed, and diplomatic efforts to end the war have stalled, intense fighting has diminished.

A US State Department spokesperson stated in an emailed response to Reuters that the department continuously reviews the security posture of its diplomatic missions worldwide.

“Based on our latest assessment, we are adjusting our staffing posture at select posts in the Middle East to enable us to continue advancing US foreign policy objectives while maintaining the safety and security of our personnel,” the spokesperson said.

The New York Times previously reported, citing an internal document, that diplomats were returning and emergency measures were being eased, noting that embassies in Jordan, Oman, Kuwait, and Qatar were also expected to restore staffing levels.

The newspaper added that US embassies in Israel, Jordan, and Oman will ultimately return to full staffing levels, while missions in the United Arab Emirates, Saudi Arabia, Qatar, and Lebanon will initially be capped at 85% of their personnel levels.

Missions in Iraq, Kuwait, and Bahrain will have their staffing levels capped at 75%.

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Trump sends Saudi nuclear pact to Congress tied to Israel ties

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US President Donald Trump has sent a draft civil nuclear energy agreement with Saudi Arabia to Congress.

However, a White House official speaking to Reuters emphasised that the pact would take effect only if the kingdom normalises relations with Israel.

The agreement, reached in July to allow US companies to export civil nuclear technology to Saudi Arabia, was sent to Congress on Monday, according to the US official, who spoke on condition of anonymity.

It remains unclear how Trump expects submitting the nuclear deal to Congress to advance his objectives.

Congress has 90 continuous session days to review the agreement.

“The president’s position has not changed that the agreement will only move forward if Saudi Arabia joins the Abraham Accords,” the US official said in an emailed statement.

Signed in 2020 and 2021, those accords were concluded between Israel and the UAE, Bahrain, Morocco, and Sudan.

A few days after agreeing to the Saudi nuclear pact in July, Trump, who had worked on a similar deal during his first presidential term, set the normalisation of ties as a condition for the agreement to enter into force.

Former president Joe Biden had also pushed for a nuclear deal and sought to link it to the accords in question.

Diplomats believed Riyadh was close to normalising relations with Israel in 2023, but the war Israel launched against Gaza in October 2023 altered the situation.

Saudi Arabia demands an “irreversible pathway” to a Palestinian state before recognising Israel.

The 30-year nuclear pact provides for the construction of AP1000 reactors, a project worth tens of billions of dollars that would benefit Westinghouse, co-owned by Canada-based Cameco and Brookfield Asset Management.

According to two congressional sources, the agreement was sent to congressional leaders and is expected to be presented to committees on Wednesday.

If Congress does not object to the agreement within 90 session days, it will take effect.

Should Congress reject the agreement, Trump could veto that decision, which would require a two-thirds majority in Congress to override.

Some Democratic members of Congress and non-proliferation advocates have criticised the nuclear agreement for failing to bar Saudi Arabia from enriching uranium or reprocessing spent nuclear fuel.

Those two activities represent two potential pathways to producing nuclear weapons. The UAE, by contrast, accepted such measures, known as the “gold standard”, in its 2009 civil nuclear agreement with Washington.

The Trump administration maintains that the agreement contains the non-proliferation measures required by law.

Henry Sokolski, head of the Nonproliferation Policy Education Center, said Trump’s move in initiating the process created the possibility that Congress might allow the deal to proceed without conditions on normalisation and non-proliferation.

“If you are serious about barring enrichment and recognising Israel, this situation is hardly ideal,” Sokolski said.

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