US-Iran: Who Will Blink First!

One would say that our main inheritance from the Covid period is the term, new normal, which has been since used, conveniently, in any circumstance we found baffling to our senses.

So one wonders if the stand in Hormuz will not be our current new normal, which will mean putting up with the economic consequences of the blockage and trying at the same time to find different routes for trade. Here, one is talking economics and trade simply because the loss of life and destruction doesn’t more matter in comparison to budgets and the flow of goods.

In fact each time anyone finds an intelligent reason for this ongoing conflict, the rediculous actions of the protagonists proves the impossibility of saying an informed or otherwise opinion. For all intents and purposes, all what can be reasonably said, is that for now, the war is supposed to be inconclusive despite the threats flying around, because essentially no one wants a regime change in Iran because no one can predict the consequences.

Therefore, back to economics again, the strategy seems, who will blink first and accept the conditions of the other to return to Islamabad. Iran with its enormous financial and economic problems which fears a new uprising in the streets once the stalemate with the US becomes the norm, or the USA with the mid term elections looming, rising inflation and higher energy prices, as well as volatility in stocks and shares prices in Wall Street.

When it comes to the situation in Lebanon, clearly the link with Iran is in fact Hizbullah; which is by its own admission the Party of Veliyati -Fatih in Lebanon, under the current circumstances, with the Israeli invasion of the south of Lebanon, for the first time in the history of Lebanon, not a sect, religious community, or power group, but in fact the official state representatives are talking about direct negotiations with Israel for peace, and in fact negotiating directly with each other in Washington.

For the Lebanese state, the situation now is legitimacy over the whole geography of the country, and limiting the possession of arms only in the hands of the Lebanese army and security. However, here also we face the scenario of whether the egg comes first, which is for Hizbullah Israeli withdrawal first, or the chicken, for the Lebanese government to negotiate the withdrawal of Israel.

Leaving the devil out of the details, would it mean ultimately, that a diplomatic agreement between Lebanon and Israel makes Hizbullah the enemy of both Israel and the Lebanese state together?, and what would the Lebanese state do as a next step, if Hizbullah decides to keep its weapons?

Then of course, there is the festering wound of Gaza and the West Bank which hardly warrant any news considering the scale of what is going on in the Gulf and in Lebanon. For Gaza, the vision fluctuates between lost peace, Israeli occupation withdrawn yellow lines, and Hamas with its show of force, amidst refugees, squalor, destruction and whether aid can go in or not, while on the other hand AI generated images of its rise beach resorts which no one is likely, from now on, be able to think about even if they can afford and realize them.

Future? What can one say save for bleak.

As for the West Bank, one has to apologise for saying that the Arabs, before anyone else, are reconciled with idea that the PNA is no longer there, apart from of course, moneymaking, here and there, and that what is termed as Palestinian territory will become a Bantustan in the sea of expanded Israel. Thus where do we go from here, well, there are people with paid salaries to think about!

Janbek is a Jordanian columnist based in Paris

 

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Hormuz: Mines, Strategy or Business?

By Ismail Al Sharif

The US thought that assassinating senior Iranian leaders would bring down the regime, but this did not happen.

Iran’s inability to match American military and technological superiority led it to adopt a number of strategies, most notably what is known in the military literature as the Mosaic Defense Doctrine. This doctrine is based on dismantling its military central command into small, independent units, each operating autonomously and making its own decisions without consulting the higher command.

From Day 1 of the war, Iran adopted this approach. However, the lack of coordination and the disintegration of the military hierarchy led to chaos and confusion which affected the management of its operations. The situation became contradictory; the politicians were declaring one thing and military commanders acting in a completely different manner and direction.

This was reflected on the ground through extremely dangerous behavior. Military units, using small boats, indiscriminately laid naval mines to deter enemy ships. However, the lack of coordination here backfired resulting in the Iranian navy officers losing their ability to pinpoint the coordinates of the mines they planted in the Hormuz Strait with no accurate maps or reliable records. Some of these mines may have been completely displaced by the currents of the sea. This was further complicated by the fact that these mines were not primitive but far from it; they were sophisticated and able to detect sound and pressure, and thus able to track the passage of large ships and submarines, and detonate automatically upon approach.

However, mine removal is not easy task, as history shows. Even today, news reports continue to surface of mines in various parts of the Kingdom, half a century after the last war. Indeed, mines from World War II are still being discovered on land and at sea.

Even with Britain’s pledge to remove mines after the war, and despite possessing the latest specialized technologies in this field, the task remains arduous, protracted, and uncertain. The specter of a sudden explosion looms, reminding us that the danger of mines is not easily eliminated.

But the decisive factor in weakening navigation in the Hormuz Strait is not primarily military, but rather material. Commercial ships are massive investments, with some vessels valued at around $150 million and their cargoes potentially worth hundreds of millions of dollars. Therefore, a single mine explosion can cause catastrophic losses to both the ship and its cargo. Consequently, no ship sails without insurance; ports, banks, and shipping companies refuse to deal with uninsured vessels, and without insurance, global shipping grinds to a halt.

Herein lies the real surprise: the fate of the Strait is no longer dependent on Iran’s pronouncements regarding its opening or closure, but has effectively fallen into the hands of insurance companies. With the escalating risks, insurance costs have skyrocketed; “war risk” premiums have jumped from approximately 0.25% of the ship’s value to nearly 1% or more, exceeding a massive $1 million per voyage. And it doesnt stop there; seven major insurance companies announced their complete withdrawal, issuing notices of coverage cancellation just within just 72 hours.

And here comes the decisive turning point: Once the insurance coverage is lost, maritime traffic ground to a halt. During this 39-war, ships have effectively ceased sailing with the number of vessels transiting the Strait plummeting by more than 80%. Around 150 oil tankers remain anchored offshore, and major shipping companies suspended their operations, as if this vital artery of global trade had been frozen by a financial, rather than a military decision.

The US government attempted to provide alternative insurance coverage, but this effort failed and US President Trump’s pronouncements regarding mine removal were inconsistent with the reality.

The issue of reopening the Strait has once again become a prominent topic, but the deeper truth is that its fate is no longer determined by political statements or military actions, but rather by the decisions of insurance experts. Even if the war were to end immediately, ships would not resume sailing right away. Insurance companies need time to reassess the level of risk, and they base their decisions not on political logic, but on cold, hard numbers and rigorous data.

This article was originally published in Arabic in Addustour daily newspaper and republished in English in crossfirearabia.com.

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