View from London: Donald Trump’s least bad option in Iran

Pic.: dailyreckoning.com

Mr Trump is in a triple bind. Iran is garrotting the global energy supply by threatening tankers in the Strait of Hormuz. Israel is bombing Lebanon, despite Mr Trump telling it not to. Hawks in America are pressing Mr Trump to chase unrealistic war aims. Something must eventually give. But the mess Mr Trump created by starting the war could take longer to clear up than markets are expecting. The world must prepare for higher energy prices, The Economist writes.

Israel complicates matters. To smooth the path to a peace agreement with Iran, Mr Trump wants Binyamin Netanyahu, Israel’s prime minister, to wind down his attacks on Hizbullah, Iran’s proxy militia in Lebanon. He has reportedly vetoed strikes on Beirut, Lebanon’s capital. But although the American president says he calls “all the shots”, Israel’s occupation of southern Lebanon is expanding. Mr Netanyahu wants to seem tough in the run-up to a general election. Phone calls between the two allies are growing increasingly tense and expletive-filled. The hard men in Tehran are delighted at their enemies’ division.

In America, meanwhile, hawks are demanding full-scale war on Iran, including attacks on its oil infrastructure, in the belief that this would force the regime to abandon its nuclear-weapons programme, hand over its stocks of highly enriched uranium and let shipping resume. This is unlikely to work, given Iran’s chokehold over the strait, and Mr Trump, who appears to be resisting such demands, is right to do so.

Oil prices wobble with each newsflash, but have yet to rise nearly as far as they could. That is because China and other big importers have found ways to curb demand, America and other exporters have boosted production and several countries have tapped their reserves. But this cannot go on for ever. Demand for petrol and jet fuel typically soars in the summer, and reserves in many places (though not China) will run short by autumn. After that, the energy crunch could be excruciating. American voters, who already blame Mr Trump for pain at the pump, will punish Republicans in the midterm elections in November.

So Mr Trump needs to make a deal with Iran. Forget about anything as good as the pre-war status quo, let alone the deal Barack Obama struck in 2015 to restrain Iran’s nuclear ambitions, which Mr Trump tore up. The best Mr Trump can hope for is a makeshift pact to reopen the strait in exchange for an extended ceasefire that may, with luck, become permanent. Economic sweeteners will be necessary. The threat of force will remain. Haggling over Iran’s nuclear programme will have to come later. Such a deal would be unstable and humiliating for the superpower.

read more in our Telegram-channel https://t.me/The_International_Affairs