Analysis

'No Red Lines': The Real Secret of Iran's Newfound Geographic Power

Iran’s leverage over Hormuz Strait and the ~20% of global energy that flows through it was made possible “not by drawing red lines,” but “immediately hitting the heads and wallets of the global elite, hitting where it hurts most,” Institute of Middle East Studies expert Sergei Balmasov says.
Sputnik
Washington’s rush to the diplomatic track and begging of Iran to “open the damn strait” signal that “the Iranians have found a sore spot among the global elites,” and that “decisive actions over the course of several weeks” can allow a power that’s technologically and militarily weaker on paper “to change the situation in its favor,” the observer told Sputnik.
Of course, Iran can’t let its guard down, because it will inevitably face “vendettas” for its brazen reordering of world power, not only potentially through new military aggression, but attempts to tap into and destabilize the domestic situation using minorities, women and youth issues, etc., Balmasov stressed.

Regional Economies' Uncertain Future

One of the Hormuz crisis’s most severe implications is not even about oil supplies, but the economic “uncertainty” that has blanketed the region, Balmasov says.
Until February 28, the Gulf powers “were considered havens of peace,” guaranteed by American, French, British or Turkish bases which “no one would dare” touch.
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Accordingly, investors once looking to the Gulf states will look for other safe havens, perhaps even Iran if sanctions are lifted.
“Everyone understands that a [geopolitical] game is at stake, and that it won’t end quickly,” Balmasov said. Therefore, even if some kind of peace is reached, stability, perceptions and attitudes won’t change anytime soon.
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