Interview
“The roles of ‘liberal West, protectionist South’ have changed”
The future of the dollar, one of the most important parts of US global hegemony, is being debated. While countries, especially China, Iran, and Russia, are trying to expand the use of their national currencies in their bilateral trade, even the Gulf kingdoms, which can be described as the “backyard” of the United States, are looking for an alternative to the dollar in trade with China. While the ratio of central banks’ assets in dollars is decreasing around the world, we are not facing a new ‘hegemonic currency’ for now, but a variety of portfolios.
While the dollar dominance in trade has declined relatively, we can still speak of ‘hegemony’ in financial flows. Prof. Dr. Korkut Boratav, one of Turkey’s most prominent economists, points to the distinction between ‘de-dollarization’ in trade and industrial capital and dollar dominance in finance capital. The U.S., which maintains its leadership in capital exports and financial markets, achieves this position by being the center of global finance capital. Maintaining its leadership in capital export and financial markets, the United States provides this position by being the center of global financial capital. Therefore, China, which exercises capital controls and uses foreign investments as a ‘peripheral’ country, is unlikely to replace the U.S. in the financial markets without becoming a classic imperialist country.
However, Boratav points out that there is an unbreakable link between the political hegemony of the U.S. and the financial hegemony of the dollar. The shock created by the 2008-9 crisis, along with the challenge of China and Russia, has been the most important indicator of the decline of U.S. hegemony. With the addition of the countries of the “South”, the situation in the neoliberal period has changed. In the absence of the left, the anger of the blue-collar workers, who went through a difficult period due to immigration to the northern countries and deindustrialization in the same countries, has evolved into an anti-immigrant and anti-Chinese policy with Trump; the Ukrainian war is also fueling this trend. Ironically, according to Boratav, while the banner of ‘globalization’ has passed to China, ‘protectionism’ became U.S. economic policy.
Two elements are said to ensure U.S. global dominance: the dollar and military power. Does the erosion of one of these, i.e., the dollar’s status as a reserve currency, directly translate into a weakening of American supremacy?
The economic hegemony of U.S. imperialism also depends on the dollar. It would not be wrong to call this dimension “dollar imperialism”. Political hegemony, on the other hand, is exercised by the U.S. state and its alliances (primarily NATO), which are reinforced by military power.
The monetary basis of economic hegemony must also be supported by production and foreign trade. For a period following 1945, the United States was the forerunner of the capitalist world economy in all three aspects. In terms of state power, there was a period of a bipolar world due to the existence of the Soviet system. Until the 1980s, the existence of the non-aligned bloc, supported by the Soviet Union, also curbed the political hegemony of the United States. After 1970, U.S. economic power began to erode with the rise of Western Europe; the US was running astronomical foreign trade and current account deficits.
The collapse of communist regimes in the Soviet Union and Eastern Europe prevented the economic decline of the United States from being reflected in politics. Germany, the only possible competitor in the economy, could not embrace Europe’s mission of being an autonomous powerhouse. During this period, neoliberalism became widespread; the domination of capital was integrated into the unipolar new world order.
After 2000, the neocon philosophy designing this new era as the U.S. Century was implemented, but it failed. First, attempts by the U.S. and its allies to transform the Middle East through regime change operations failed. The limits of military power were revealed. Secondly, it was not Yeltsin’s Russia that emerged from the wreckage of the Soviet Union, but Putin’s Russia, which rejected the dependence on the Western alliance with a nationalist attitude. Third, and most importantly, in 2008-2009, Western capitalism was dragged into the worst economic crisis since the Great Depression. The legitimacy of capitalism as a system was severely damaged. At the same time, China, as an alternative economic power unaffected by the crisis of capitalism, prevented the U.S. and European crisis from turning into a world crisis.
Amid this crisis, it became clear that the United States is economically dependent on China, which has become the second largest economy in the world. China’s new leader, Xi Jinping, assimilated this new situation by embracing globalization. But two years later, he also came face to face Trump’s economic war against his country. The Trump administration soon turned the economic war into an ideological war against the Chinese Communist Party. This stance meant that anti-U.S.-Chinese sentiment moved to a Cold War, and was later adopted by the Biden administration, NATO, and increasingly by EU bodies.
The above-mentioned political stumbles of the U.S. dominance were combined with the decline of its economic supremacy. The dollar’s position as a world currency began to erode in this environment.
It is a fact that central banks reduce the dollar rate in their portfolios and turn to other instruments. However, we do not seem to be entering a world where the dollar is being replaced by another ‘hegemonic’ instrument, but rather a world where instruments are multiplying. Does this mean a crack in the hegemony not only of the United States but of global finance capital?
Yes, the instruments used in international economic transactions are diversifying. This diversification is due to the decline in the dependence of industrial and commercial capital on the dollar rather than finance capital. The leading country in world trade is China with a 15 percent share. It is clearly far ahead of the United States. It occupies a strategic position as an exporter of industrial products and an importer of raw materials and intermediate goods at the beginning, end, and some intermediate stages of supply chains. Mineral exporters from Russia, Brazil, OPEC members and the Southern region are located at the other ends, partly in a mixed position. These countries account for most of the tradable output of the world’s national product. The use of the dollar as a medium of exchange in foreign trade is not mandatory. It was once claimed that it was impossible to export oil with non-dollar currencies. It was recently announced that Saudi oil would be sold to China in exchange for the renminbi (RMB); the U.S. remained silent to.
The economic basis for the US dollar being a world currency is international capital flows, in other words, from international finance capital. The volume of international capital flows, together with a wide range of short-term financial transactions, which can also be expressed as “making money out of money”, exceeds foreign trade transactions many times over. The United States is the world leader in capital exports. New York is also the center of the international financial system. The indispensability of the dollar depends on these things.
Is the renminbi likely to replace the dollar in the short term? Countries such as Brazil, Saudi Arabia, Russia, Malaysia, and Singapore have expressed their willingness to trade with renminbi instead of the dollar. On the other hand, some commentators argue that biggest obstacle to the renminbi is that China still maintains capital controls and is not an ‘open market.’
Foreign trade (primarily as “trade in goods”) is the exchange of commodities between countries; it is the necessary condition for the continuation of production. If it were only a question of financing foreign trade, there would be no need for the dollar. The RMB and ruble could take over this function together. It is noteworthy that Russia is the leading exporter of oil, grain, and minerals, complementing China in international specialization.
The U.S., as a net exporter of capital, is at the top of international capital flows. In addition, short-term (partly speculative) financial transactions are also largely made in dollars. Because of these two functions, the need for dollars is inevitable and this privilege is independent of trade. After 1945, even in periods of foreign trade surplus, the U.S. created the international liquidity required for the functioning of world trade by printing dollars.
China, on the other hand, is in a different position. It maintains current account surpluses and has accumulated reserves that have reached $3.3 trillion today. It supervises its own capital movements as a guarantee of economic independence. It controls and limits the “flight” or export of capital as a dependent peripheral economy rather than as a leading element of the world system. Most of the capital export comes from the state-owned Chinese Investment Corporation (Wealth Fund), where part of the reserve accumulation is transferred. Foreign investment by private Chinese companies is in the background. Some Chinese economists advocate melting down the Chinese government’s reserves with foreign investments. Only then, they argue, will the RMB become an international currency that is rooted in China’s productive power. In a sense, this proposal advocates the transformation of China into a typical imperialist country.
To what extent do the tensions of American domestic politics play a role in the escape from the dollar? There are financial circles that think that especially Joe Biden’s steps such as ‘new industrialization’, ‘transition to green energy’, ‘Inflation Reduction Act” have pushed the United States into an isolationist, neo-mercantilist policy and that the dominance of the dollar has weakened because of this. With or without Biden, is there a chance for the United States to step back from this policy?
This question is linked to the political extensions of the economic war against China. During his presidential campaign, Trump openly adopted an anti-globalization rhetoric; he advocated a protectionist foreign trade policy, targeting China in particular. He campaigned against the capital circles driving U.S. companies’ productive investments in China and Mexico, accusing them of “shifting jobs out of the country.” He imposed quantitative restrictions on imports from China, with which it signed foreign trade agreements with the “free trade principle” that have strict mercantilist characteristics.
Biden has also raised Trump’s bar. His “green energy, inflation reduction” acts have also provoked an open reaction from the EU. He also shifted the economic war against China to the field of technology. He imposed export bans on high-tech products and pressured the EU to impose these bans on allies such as Japan and Korea.
The roles of “liberal West, protectionist South” have changed today. In Davos, Xi Jinping and his aides have emerged as fanatical advocates of globalization, especially the doctrine of free trade. They are taking a principled stance against the US-led economic sanctions. The addition of Russia to countries such as Iran, Venezuela, and Cuba, and the seizure of Russian central bank reserves by the central banks of the United States (FED), Europe and the United Kingdom was the last straw. This is why many countries are reducing their dollar holdings in central banks and their allocation to Western financial institutions.
In the background, the losses of the “indigenous” working classes of the West from globalization are effective. Western industrial capital shifted production to peripheral economies (such as China and Mexico) in search of cheap labor. The traditional industrial sectors of the blue-collar working class were quickly liquidated. On the other hand, neoliberal policies have increased unemployment and poverty in Latin America and Africa. The aggression of imperialism (in the Middle East, for example) have had different impacts. The flow of millions of workers from the East and South to the West and North as migrant workers has increased as a result of these factors. Wages in the West are also under pressure due to the immigrants.
The liquidation of traditional industries and migrant workers… The result is the spread of tensions and unrest among the working classes of the West. In a conjuncture where the Left is weakened, these reactions feed a political environment that blends anti-immigrant and anti-Chinese sentiments in the West. The example of Trump and the Republican Party has shown that central politics could easily shift to neo-fascism. The war in Ukraine is feeding this tendency in a dangerous direction.
Interview
Daniel Davis warns US strategy fails against Iranian defense grid
Retired US Army Lieutenant Colonel and military analyst Daniel Davis discussed the US military operation against Iran, decision-making mechanisms in Washington, US-Israel relations, transformations in modern warfare doctrine, and the global balance of power in an interview with Harici Media.
Answering questions of Harici Editor-in-Chief Tunç Akkoç regarding the Iran war, retired Lieutenant Colonel Daniel Davis stated that the US administration lacks an achievable military strategy on the ground. Davis said: “I would say the US has a desire, not a strategy. It wants to subjugate the Iranian side, corner them, seize control of the Strait of Hormuz, prove they pose no threat to anyone in the region, and ensure they never possess nuclear weapons. That is our desire. But there is no strategy to achieve any of these goals.”
Drawing on his past military experience, Davis detailed the geographical and technical challenges on the ground: “As a soldier with direct combat experience, having gained combat experience in some of these mountains between Afghanistan and Pakistan, for example, I know that many of the mountains inside Iran belong to the same mountain category. I knew what a difficult military task it would be to conquer a country as large as most of Western Europe, where such mountain ranges cover the entire western front. Therefore, I knew you could do nothing on the ground. However, I also knew that you could not subjugate a country with this kind of defense capacity and of this nature through air power alone.”
Pointing out that Iran’s defense infrastructure spans many years, Davis continued: “You cannot do this, especially when they have anticipated this for twenty years and made all kinds of preparations by constructing underground caves, production facilities, and storage facilities, and developing production capabilities for their unmanned aerial vehicles and missiles. There is no way you can defeat them. Because such facilities were designed not only to withstand all our strike missiles, such as Tomahawk, Jasmine cruise missiles, PSM, or ATAC, but also to survive. Most are capable of surviving nuclear explosions as well. I have been inside some of these here in the US. I have been in some physically located beneath a mountain. I know they were specifically designed when constructed to withstand the largest nuclear weapons the Soviet Union might possess. The ones there are of the same kind. If you know before embarking on an act of starting a war that the enemy is this large, possesses these types of defenses, and everyone knows these are resistant to our non-nuclear conventional munitions, why would you start a war to force them into something you clearly cannot achieve?”
Addressing the assumptions behind the war decision, Davis said: “I think this is a fantasy stoked by Benjamin Netanyahu. It was said, ‘If we assassinate their leaders, the same thing will happen as happened to Maduro in Venezuela. You went there, captured him, and disabled him; when you did that, you took control of the entire government, they basically handed the country over to you, and the same will happen here.’ Anyone who thinks Venezuela is like Iran has paid attention to nothing. The culture, history, religion, experiences, and everything that has transpired over the last 47 years are radically different from those in Venezuela, and you do not have an insider to facilitate the process as we had in Venezuela. But President Trump appears to have thought this way.”
“When he started the war on February 28, he sealed our fate; we lost this war”
Pointing to inconsistencies in US President Donald Trump’s decisions and the trajectory of the operation, Davis stated: “This situation is proof that he is stuck. Because, in my view, when he started the war on February 28, he sealed our fate. We lost this war. Even if it is ongoing right now, there is no logical way for us to win it. Because we cannot eliminate the trump card held by the Iranian side.”
Stating that military pressure mechanisms are insufficient, Davis explained: “We still have our missiles, aircraft, aircraft carriers, and all such elements. That is why it appears feasible. It is thought, ‘Maybe if we make a good enough deal, or put enough pressure on them, or impose a blockade and leave the public in a dire enough position to change the government’s mind.’ This is a fantasy. This is the only thing President Trump has. Because if he were acting based solely on military reality, strategic reality, and cultural and religious reality, he would know this was an unwise move, but he does not know.”
Describing Trump’s negotiation approach and the breakdown of the reached agreement, Davis used the following expressions: “He is a transactional individual who wants relationships resolved overnight. For example, during the memorandum of understanding period, this duration was to be 60 days. After starting the war, no achievable military objectives remained. Whatever your desires were, you can no longer reach them because you have confronted reality. Now he is trying to find an exit route, but even within this understanding, he cannot arrive at a rational and consistent perspective. Any rational person would think that when the memorandum of understanding was signed on June 17, it provided him with an exit route. You implement the terms of this memorandum, the crisis is resolved, the dual blockade is lifted, and the Strait of Hormuz could reopen.”
Addressing the clauses of the agreement text and subsequent developments, Davis said: “The terms Trump signed stated that Iran had administrative control of the Strait of Hormuz but could not demand any transit fees for 60 days. Iran accepted this, but accepted only one condition: the ‘for 60 days only’ stipulation. Subsequently, they publicly announced that they would collect fees later, but not during these 60 days. The US was not mentioned in the text in any way. We had no say. The authority to decide how operations would run was left to Iran together with Oman. We gave them 30 of the 60 days to prepare their plan for this. But after four or five days passed, the US suddenly declared a new southern corridor together with Oman.”
Detailing the process of reversing the decision, Davis noted: “While a step to reopen the strait had been agreed upon, traffic had risen to approximately one-third of pre-war levels, and many shipments had passed directly on the first day, Trump personally turned back this development toward finding a reasonable exit route from the unfolding disaster. According to reports from some sources in Washington, he came under intense pressure from pro-war figures in his inner circle and those on the Israeli side. He backed down under this pressure and modified the terms by inserting himself into the fifth paragraph. He never made Israel implement the first paragraph, which covered Lebanon and envisioned a ceasefire on all fronts. We did not even give them 30 days; we intervened before five days had passed. Trump has a goal, fails to reach it, puts forward another condition, and then withdraws that as well. He is very easily manipulated; he reaches a decision, then someone speaks with him, and he changes his mind.”
Recalling that a similar situation occurred in relations with Saudi Arabia, Davis said: “He said he made a great deal with Saudi Arabia, and the next day he changed the condition by saying, ‘as long as they sign the Abraham Accords.’ Saudi Arabia, on the other hand, announced that this was not part of the agreement and had never been discussed. This situation shows that President Trump constantly makes concessions when pressured. On this basis, how can any agreement be reached with the US? This situation means that no military or diplomatic exit point remains because he does not permit it.”
“Control is no longer an economic matter; it is a national security imperative”
In response to a question about whether a mutual exit opportunity remains from the current impasse, Davis said: “We had the memorandum of understanding; we had secured this agreement. However, President Trump and his Secretary, Scott Bessent, said, ‘as long as it is a deal we like, we want a new deal.’ You already had a deal; what deal are you talking about now? Why would the Iranian side negotiate a new deal that differs from an agreement made two months ago? This is completely illogical. The Iranian side holds military superiority through its missile cities and half a dozen alternative methods to control the strait. As their official authorities stated on social media, control of the strait is no longer merely an economic matter; it is a national security imperative because it is the only tool with which they can balance their American adversary, who is far stronger militarily.”
Evaluating the impact of the oil crisis, Davis stated: “Strategic Petroleum Reserves are declining. This situation has prevented a crisis so far, but it cannot cover products like jet fuel, diesel, and fertilizer. If it continues this way and the problem is postponed, the reserves will be depleted one day, and economic activity cannot be sustained without oil. Pressure is on President Trump, and the Iranian side is aware of this. They know the blockade will harm them, but they have calculated that they can endure much longer and deeper pain than our side. This is an existential matter; they know that if they surrender their only trump card to an unpredictable president, they will be attacked again later.”
“Reflexive support for Israel in society has been broken”
Touching upon relations between the US and Israel, Davis said a clear divergence has begun in American society. Davis noted: “In the past, across all segments of society and all generations, it was reflexively said, ‘Of course we are pro-Israel, they are our democratic ally.’ This situation continued until the Gaza process following October 7. Israel was attacked on October 7, and no one found it strange that it responded. However, what happened afterward created problems. Israel used this opportunity to destroy the Gaza Strip, increase pressure in the West Bank, bring in new settlers, and discuss annexation.”
Describing the rift between political elites and the public, Davis explained: “There is a major divide in America. Elites are unaffected by genocide or the killing of women and children in the West Bank and Gaza; they close their eyes, arguing that Israel is an ally. However, the eyes of the American public are not closed. They see human suffering on social media and do not carry the memorized assumptions of the past. These elites are not merely bought with money; for decades, they genuinely believed that our interests and Israel’s interests were one and the same. In their minds, saying something negative about Israel is equivalent to saying something negative about the US. Younger generations in particular, and a growing portion of all generations, recognize that our interests are not the same.”
Drawing attention to the cost of the war to the US, Davis noted: “We elected President Trump to apply the America First principle, not Israel first, Britain first, or Germany first. There is anger against those who sacrificed America’s needs by entering the war. According to figures reflected in the public domain, at least 600 Americans were injured; according to what I have heard, this number is over a thousand. Money has been spent, our facilities have been damaged, and our aircraft destroyed; around 40 to 50 of our aircraft were damaged or destroyed. Our bases were ruined and will likely never be rebuilt. We have also lost our geopolitical influence in the region. I doubt that relations with Saudi Arabia, Qatar, the United Arab Emirates, and Kuwait can return to their former state. Because the foundational assumption of this entire structure was that we could protect them; we could not even protect ourselves.”
“We are still living as if it were 1992”
Evaluating the shift in military technology, Davis stated that the US has lost its traditional military superiority. Davis said: “A large number of people in America are still living as if it were 1992. The Soviet Union had just collapsed, China was a peasant army developing militarily and economically, and we held absolute dominance following Operation Desert Storm. We are no longer in 1992. The Russians corrected their mistakes after the initial phase of the Ukraine war in 2022; they became a much stronger land force, missile, and drone force. China, meanwhile, reached immense technological and industrial capacity.”
Explaining the current situation through the example of Iran, Davis said: “We thought we could crush Iran like a fly, but we could not do so due to their missile cities and technologies. If we cannot eliminate Iran, what can we do against China or Russia, which possess power far beyond that? We have fallen behind in categories such as hypersonic missiles and the new Oreshnik missile. When I saw the Bayraktar TB2 vehicles used by the Turks in the 2020 Armenia-Azerbaijan war, as someone with an armored unit background, I understood that the nature of war had changed. The US, meanwhile, talks about producing 300,000 drones by 2030. In an environment where tactics change every six weeks on the Ukrainian and Russian battlefield, our systems remain extremely slow. Ukrainian soldiers mocked the tank platoon manual published last year, saying that with these methods, one could not survive on the battlefield for even ten minutes.”
“The idea of containing China is a fantasy”
Criticizing the US military approach toward China, Davis evaluated: “There is talk of a strategy to militarily contain China. Will you prevent their activities within their own borders, their technological developments, or the expansion of their military? You cannot stop a country with a strong economy and a massive population. We can achieve no result other than entering a war with China in the Asia-Pacific region and losing it. China’s shipbuilding capacity is approximately 200 times ours; they are vastly superior to us in artillery ammunition, aircraft, and missile production. Our methods left over from the Cold War no longer work. What we need to do is keep our own defense strong and ensure deterrence, not spend billions of dollars in the region to establish forward bases that will be hit.”
Touching upon the potential for diplomatic relations between the two countries, Davis said: “I think President Trump personally knows that going to war with China is unwise. However, the Pentagon and the military-industrial complex view China as a constant enemy, demanding more budget, more bases, and more missiles every year. No one considers diplomacy. Yet we can develop peaceful, stable relations with China based on mutual benefit, even if not friendly. Regarding Taiwan as well, I think leaders realize after seeing what occurred in the Middle East and Ukraine that help will not come, and they will adopt a more cooperative stance by withdrawing independence rhetoric. China does not want to start a war; it desires a model similar to Hong Kong. Even if a conflict breaks out in the worst-case scenario, it is between China and Taiwan; the US should not choose to join the war and lose.”
Emphasizing that the arms lobby inside the US maintains its power, Davis stated: “The military-industrial complex remains extremely powerful and holds all levers of power. They maintain control through members of Congress, the media, and public relations networks; I see no sign that this structure is weakening.”
“They did not want someone who would tell the truth about Israel”
Providing information about the process surrounding the cancellation of his appointment within the Office of the Director of National Intelligence, Davis recounted the issue in these words: “When Tulsi Gabbard came to me and asked me to become the number three executive in the Office of the Director of National Intelligence, I said I would be honored to serve my country. However, I stated that I had openly opposed the policies pursued by Israel since October 7 and the war in Gaza and Lebanon, and that these views might not be welcomed within the administration. She thought my accurate past analyses would compensate for this situation. One of my duties was to present the daily intelligence briefing to the president.”
Describing the stage at which his candidacy was withdrawn, Davis said: “Articles against me appeared in the Israeli press and American media. I never hid my views; I said Benjamin Netanyahu’s policies were harming Israel and dragging us down as well. I advocate the ‘America First’ principle, but there are many people within the administration who say ‘Israel First’ and have zero tolerance for any criticism directed at Netanyahu. They did not want someone who would tell the truth regarding Israel. The process expanded following posts by figures like Laura Loomer. On the day I passed the CIA polygraph test and was set to begin duty, Susie Wiles was informed that I had put the president in a difficult position regarding the Russia-Ukraine war. While Trump was saying there would be a ceasefire, I stated on my program that Vladimir Putin would not agree to a ceasefire given his current advantage. Although I stated that I supported a ceasefire, this was made a pretext, and my appointment offer was withdrawn,” completing the interview.
Interview
Quincy Institute expert says the United States had no plan B
In an interview with Harici Media, Trita Parsi, Executive Vice President of the Quincy Institute for Responsible Statecraft, stated that global unipolarity is coming to an end, transitioning into an increasingly multipolar order.
Parsi addressed shifting global power dynamics, US foreign policy toward China, structural domestic pressures in Washington, and the strategic miscalculations surrounding the ongoing US conflict with Iran.
Parsi noted that while many analysts declare the arrival of a post-American world, the transition will not be an abrupt moment. Instead, he described a phased emergence where it becomes clear that no single superpower possesses deterministic influence over global affairs.
Parsi observed that many governments have been slow to internalize this reality or adjust their policies accordingly, creating the superficial illusion that a unipolar system remains intact. “Whether it’s fully multipolar or other configurations, we can be debated. What I think is clear is that the unipolarity is coming to an end,” Parsi said.
“Unipolarity is an aberration, an abnormality”
Regarding Washington’s readiness for a multipolar world, Parsi asserted that the US political establishment remains unprepared and has historically denied the shift. He recalled that during the first two years of the Biden administration, describing the world as multipolar was dismissed as a Russian propaganda narrative.
However, Parsi highlighted a shift under US Secretary of State Marco Rubio, who stated in a February 2025 interview that unipolarity was an anomaly. Parsi explained, “He actually went further. He said that unipolarity is an aberration, an abnormality, a historical accident. If you believe that it’s a historical accident, if you believe that it’s an abnormality, then I think it comes from that, that any effort to try to restore unipolarity should be rejected.”
Addressing US policy toward China, Parsi noted that despite the summit between US President Donald Trump and Chinese President Xi Jinping in Beijing, there is no structural indication that Washington views Beijing as a potential partner rather than a rival.
He contrasted the Biden administration’s aggressive posture—which assumed an existential struggle for dominance—with the Trump administration’s softer but poorly planned approach.
Parsi argued that neither power can decisively defeat the other, making mutual coexistence and co-governance essential to avoid a catastrophic zero-sum confrontation.
“An effort to indefinitely contain China is a recipe for disaster”
Parsi rejected the feasibility of military containment against Beijing, warning of severe consequences. “I think an effort to indefinitely contain China is a recipe that will bring about great power competition and a confrontation between the US and China that is going to be completely disastrous,” Parsi stated.
He observed that despite significant US strategic errors, such as the conflict with Iran, China has exercised restraint rather than exploiting American vulnerabilities. Parsi argued that if Beijing were dead-set on aggressive power competition, it would have acted differently.
Economically, Parsi argued that containing China through tariffs or Soviet-era containment models is a losing proposition.
Unlike the Soviet Union, which maintained an isolated economic model, China is deeply integrated into global trade and serves as the primary trading partner for most nations, including those in Latin America such as Brazil. Parsi emphasized that economic containment is unviable against a state with such vast global integration.
“This confrontation will be the deadliest conflict in human history”
Evaluating the risk of the “Thucydides Trap,” Parsi criticized the Washington foreign policy establishment for its structural inability to envision peaceful coexistence.
He noted that the political culture in Washington is built around zero-sum competition and conflict rather than diplomatic management.
Parsi emphasized that while historical precedents exist, humanity is not bound to repeat them, particularly when the stakes involve existential risks. Parsi warned that an unmanaged confrontation between the US and China “would be the deadliest conflict in human history if it is allowed to happen,” threatening human survival itself.
Parsi attributed this narrow strategic focus to structural domestic forces, particularly the US military-industrial complex and influential lobbying groups. Working alongside the grand strategy of liberal hegemony, these forces require US military dominance worldwide, especially in Asia.
Parsi explained that institutional inertia makes it extraordinarily difficult for Washington to alter its strategic trajectory.
“The US had an unrealistic plan A and no plan B”
Turning to the conflict with Iran, Parsi asserted that Washington lacks a coherent strategy, having relied on an unrealistic plan that failed within the first three days.
He stated that the US expected a swift regime collapse or surrender within four days, but faced horizontal escalation from Iran, including threats to the Strait of Hormuz and regional strikes.
“The United States had a very unrealistic plan A and no plan B, and it’s been stuck in that situation ever since,” Parsi said, adding that Washington has been improvising and executing tactical operations without strategic success.
Parsi attributed President Trump’s shifting decisions on Iran to this absence of strategy and his personal demand for immediate results. When military action failed to yield swift progress, Trump turned to diplomacy, only to lose patience within three weeks and resume military strikes. Parsi questioned whether the global community could afford a superpower acting in such an erratic manner.
“Without Israel’s push, there would not have been a war with Iran”
Addressing Israel’s role, Parsi stated that Israeli pressure was a decisive factor in driving US policy toward confrontation with Iran.
“Without Israel’s push, there would not have been a war with Iran. Without Trump agreeing to the Israelis, there would not have been a war with Iran. Both of them were needed,” Parsi remarked, noting that Israeli efforts since 1995 elevated Iran into a primary US national security concern disproportionate to actual US interests in the region.
Parsi identified a growing divergence between US and Israeli interests in the Middle East. While the US benefits from reducing its regional military footprint of 50,000 troops, Israel requires continuous US military presence and intervention to maintain a favorable regional balance of power.
Parsi noted that this divergence has created a visible rift between Washington and Tel Aviv following the poor execution of the war and subsequent diplomatic maneuvers.
“Israel’s standing amongst the American public has plummeted”
Parsi highlighted a major shift in American public opinion regarding Israel, noting that sympathy for Palestinians has surpassed sympathy for Israel across almost every demographic category, except Republicans over the age of 65.
He attributed this decline directly to Israel’s military actions in Gaza and its perceived role in drawing the US into a disastrous war with Iran, which mirrored earlier public grievances over the Iraq War.
Regarding a resolution to the conflict, Parsi stated that a dignified exit for both the US and Iran remains possible, though the window is narrowing due to personal hostility and political miscalculations.
Finally, addressing Trump’s political image, Parsi clarified that Trump was never strictly anti-war, but rather anti-risk.
He explained that Trump entered the conflict because Israeli officials convinced him that war with Iran posed little risk and would be concluded within 100 hours. Parsi concluded that had Trump not been misled into believing the operation would be a swift success, he would not have initiated it.
Interview
Why did Trump step back from a decision to launch a new attack on Iran?
Conflicting statements from the US and Iran regarding the potential resumption of diplomatic negotiations have emerged, while ongoing tensions in the Strait of Hormuz have once again brought global energy concerns to the fore.
Addressing these developments on the Harici live broadcast of Strategic Compass, international relations scholar Prof. Dr. Hasan Unal and Alptekin Dursunoglu, journalist, author, and Editor-in-Chief of Yakin Dogu Haber (YDH), evaluated the internal, regional, and strategic dimensions of the conflict. The discussion focused on the shift in Iran’s military doctrine, the political strain within the US administration, the economic vulnerability of Gulf monarchies, and the broader realignments reshaping Middle Eastern geopolitics.
Why did Trump step back from a decision to launch a new attack on Iran?
Opening the discussion, Prof. Dr. Hasan Unal offered a sharp critique of the political rhetoric originating from Washington, contrasting executive declarations with the tactical outcomes on the ground. Unal argued that public statements made by former US President Donald Trump increasingly lack analytical consistency, complicating efforts to decipher official US strategy.
“He has reached a point where he tells more lies than the daily meowing of stray cats,” Unal remarked during the broadcast. “I do not know which part of his statements we ought to analyze, but if we evaluate him within a broader framework, it becomes possible to reach certain conclusions.”
Unal described the military confrontation between Washington and Tehran as an uneven cycle of escalation, noting that US forces continue to suffer casualties and incur immense financial costs without altering the strategic baseline. “The situation has effectively transformed into something like a defeated wrestler who never grows tired of wrestling; America repeatedly approaches and confronts Iran, yet the outcome is obvious from the outset,” Unal stated. He added that American military personnel are being deployed into conflict zones where national interests remain obscure: “I am certain that American soldiers there largely believe they have no personal interests at stake… and that it serves at most the interests of Israel.”
Dursunoglu contextualised the current phase of hostilities as part of an extended campaign, comparing the recent clashes to a second round of a broader regional conflict following earlier engagements in 2025. He noted that despite assertive claims from Washington regarding the destruction of Iranian military infrastructure, operational continuity on the Iranian side forced a shift in US messaging.
Reflecting on official declarations from US Central Command (CENTCOM) and executive statements following intensive strikes, Unal highlighted the internal contradictions in Washington’s narrative: “Trump claimed Iranian naval forces were sent to the bottom of the sea, the air force beyond the atmosphere, and the ground forces deep into the magma. Yet suddenly he declared, ‘I have forgiven Iran,’ while CENTCOM figures suggested they had reached ‘target saturation’—as if there was simply nothing left to hit.”
Is Iran insisting on its conditions regarding the Strait of Hormuz?
A central focus of the analysis was Iran’s response mechanism following the breakdown of initial ceasefire frameworks. Dursunoglu highlighted a significant structural transition in Tehran’s military posture, moving from traditional reactive containment to proactive deterrence across multiple theatres.
Dursunoglu pointed out that during the escalation, Iran did not restrict its target matrix to immediate points of contact. Instead, Iranian forces conducted strikes against US installations and logistical networks across the region, including facilities in Bahrain, Kuwait, Jordan, and Oman.
“Iran’s traditional defence doctrine was defensive and based on proportional retaliation,” Dursunoglu explained. “However, after the US halted strikes, Iran proceeded to target assets in Jordan and Kuwait without immediate prior attacks on those specific vectors. This indicates that Iran has begun executing preemptive strikes, effectively adapting its strategic posture.”
Unal underscored the severity of these strikes on regional logistics, noting that Iranian counter-strikes targeted the port of Aqaba and airport infrastructure in Jordan, alongside American operational facilities in the Gulf. “According to the accounts, Iranian forces began hitting American installations in Gulf states and Jordan within minutes of initial strikes, effectively neutralizing the operational depth the US relied upon,” Unal noted.
The operational status of the Strait of Hormuz remains a decisive point of leverage. Under previous draft frameworks negotiated through Omani mediation, administrative oversight of maritime traffic through the Strait was slated to transition to Iran in coordination with regional littoral states. However, subsequent US efforts to establish an independent naval corridor along the Omani coast triggered a fresh wave of Iranian interdictions.
Dursunoglu outlined the ongoing negotiations surrounding the maritime passage, noting that attempts to bypass Iranian oversight proved unviable for commercial shipping. Under the latest proposals under discussion via Omani channels, incoming maritime traffic into the Gulf would pass through Iranian-designated corridors under Iranian authorization, while outgoing traffic would proceed along Omani coastal waters following notification and approval.
“If an agreement is finalized on these terms, it represents an explicit recognition of Iran’s control over the Strait of Hormuz by the US regime,” Dursunoglu said. He noted that while initial terms provided free passage during a temporary 60-day window, long-term frameworks anticipate structured administrative mechanisms for commercial vessels. Unal added: “Whether designated as transit fees, environmental charges, or security provisions, formalizing maritime oversight secures a permanent structural advantage for Tehran.”
Under what conditions will negotiations begin?
The economic ramifications of maritime disruption have also altered the calculations of Gulf export nations. Following attempts by Saudi Arabia to engage Ansar Allah (Houthi) forces in Yemen, retaliatory actions against critical infrastructure—including the Yanbu crude oil pipeline on the Red Sea—severely constrained alternative export routes.
“By drawing Yemeni forces back into active conflict, Saudi Arabia inadvertently placed its secondary export avenues under direct fire,” Unal observed. “The vulnerability of the Yanbu pipeline demonstrates that reliance on the Gulf cannot be bypassed easily, effectively increasing regional dependence on stability within the Strait.”
Beyond the maritime domain, the broadcast addressed heavy Iranian military engagements in northern Iraq, targeting opposition groups including the Kurdistan Democratic Party of Iran (KDPI), Komala, Pak, and Free Life Party of Kurdistan (PJAK) along the Erbil-Suleimaniyeh axis.
Dursunoglu and Unal noted that cross-border strikes destroyed substantial ammunition depots established near border regions, followed by reported ground operations conducted by specialized Iranian units.
“Iranian special forces executed targeted ground operations across the border,” Dursunoglu stated, pointing to secondary explosions captured in operational footage as evidence of extensive pre-positioned armaments.
Unal noted that these operations underscored the strategic limitations of non-state actors aligned with Washington: “The expectations placed on armed factions in northern Iraq collapsed when confronted with direct military pressure. The narrative that these groups could serve as an internal wedge against Tehran proved to be a costly miscalculation for US planners.”
Reports indicating the start of a repositioning of US personnel and heavy military equipment from bases in Iraq and the Gulf toward Jordan and Israel were identified as a direct consequence of this vulnerability. “US forces are consolidating toward Jordan and Israel because their facilities in Bahrain and Kuwait sustained structural operational damage,” Dursunoglu observed. “When a state can no longer defend its forward command centers—such as the 5th Fleet infrastructure in Bahrain—it is forced to retreat to secondary defensive perimeters.”
How effective is the pressure from Gulf countries for negotiations?
Concluding the evaluation, Unal and Dursunoglu examined the broader diplomatic landscape, focusing on security dialogues among regional powers, including Turkey, Egypt, Saudi Arabia, and Pakistan. Both analysts agreed that any sustainable security architecture in the Middle East must incorporate Iran rather than seek its exclusion.
“How can you construct a new regional order by excluding the very nation that demonstrated the capacity to neutralize external military dominance?” Dursunoglu questioned. “An architecture that relies on Western guarantees or Israeli alignment fails to address the underlying security dynamics of the region.”
Unal reflected on the historical trajectories of Turkish foreign policy, criticizing past ideological approaches that fuelled regional fragmentation and sect-based antagonisms. He noted that realpolitik dictates close functional coordination between Ankara and Tehran despite historical differences.
“Iran’s resistance ultimately prevented the imposition of a security framework dictated entirely by external actors,” Unal concluded. “Responsible analysis requires recognizing that stability in the Middle East cannot be achieved through foreign intervention or regional fragmentation, but through direct, autonomous security coordination among the region’s core nations.”
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