This sketches out how the U.S. could   have severe financial consequences as Iran pursues  its strategy of dethroning the U.S. Dollar as reserve currency. China will emerge as the real winner.

Panic: Trump Tries To Threaten China Into Bailing Him Out

… Now Trump’s panic is showing in his desperate attempt to threaten China into sending its navy to open the Strait of Hormuz. As if China will respond well to threats. And the threat itself would be laughable if it weren’t so pitiful—Trump says that if Xi won’t save his (Trump’s) sorry ass, Trump will refuse to visit Xi in Beijing. He’ll need to stay home and run the war that’s blowing up the world. Wow! That must have Xi shaking in whatever his footwear is!

I’ll present a transcript of Sean Foo’s discussion of this and of the emerging implications for the global economy. There’s so much that can be said, but Foo does cover a lot of the high points to show that Trump finds himself in a box. But to be clear—it’s not just Trump’s problem. This is an existential problem for the Anglo-Zionist empire.

Iran War: US Orders China To UNBLOCK Hormuz As Iran DE-DOLLARIZES Global Oil Trade

Welcome back to the USS Armageddon. It’s not getting better–it’s actually getting worse. The Iran war just keeps escalating. We are now seeing some of the most dangerous strikes happening. Kharg Island has been hit by US attacks, and this is Iran’s biggest export hub. Crude oil has also gone up above $100 again, and it seems Trump is not shy about hitting Iran’s oil infrastructure. So now the odds of a continued market collapse just rose again.

But what’s really crazy is how Trump is trying to pressure China to help the United States–despite having the world’s most powerful navy. Warfare on the high seas is now asymmetric. Cheap Iranian drones and long-range missiles are able to halt an entire carrier group or two from entering Hormuz. Trump is now throwing a tantrum and threatening consequences if the Chinese don’t help. If Beijing refuses to send warships to unblock the Strait of Hormuz, the US will simply delay [the planned end of the month Beijing meeting with Xi].

And Trump’s excuse is simply weird. Listen to this:

Trump: It’s only appropriate that people who are the beneficiaries of the strait will help to make sure that nothing bad happens there.

But it was the US initiated war that triggered the strait to be impossible today. So what Trump wants isn’t just help. He basically wants a cleanup crew. He wants to indirectly drag other countries who aren’t directly involved into the center of a very very dangerous war. Now, if a Chinese vessel or even a NATO ship gets hit by an accidental mine, drone or missile, what will the consequences be? Even if China does nothing, Trump could easily escalate the attacks on Iran. It’s the perfect excuse. He could always frame things as the US now protecting global security. And that’s how easily things can just spiral out of control.

In fact, the entire world is opting out of Trump’s pathetic Peace Armada gambit. They’d all be having a good laugh, if the consequences didn’t look so serious for the whole world.

Now, what’s frightening is how Trump still doesn’t know the endgame for Iran. Is it a short-term war or something long-term? Is the goal to denuclearize Iran forever or complete regime change?

Q: You just said it is “a little excursion” and you also said it is a war. So, which one is it?

Trump: Well, it’s both. It’s both. It’s a uh an excursion that will keep us out of a war and the war is going to be uh I mean, for them it’s a war. For us, it’s uh turned out to be easier than we thought.

Yeah. Also the Brooklyn Bridge.

Now, is this an excursion or fullout war? Can he decide which it is? Trump is trying to flex [sic] to China, but the US holds no leverage here. The Chinese don’t really need a trade deal with the US anymore. It is the exact opposite. The US needs a trade deal with the Chinese. The trade figures alone tell us that China’s dependence on US trade is over. They just don’t need the US anymore. Not as much as Trump really thinks. Even before the war, Chinese exports grew by an incredible 21% in the first two months alone. That’s January and February. Now the trade surplus has grown to $213 billion. So the Chinese are making money hand over fist. Trade with the US has fallen by over 11% in dollar terms, but in Yuan terms it is down by almost 17%. But this shortfall is being covered by increased trade with Asia and even Europe. Both are up by 20% or more.

Throughout 2025 China has been setting up new relationships and diversifying across the world. In 2026, their [China’s] collapse proved [was proofed?], especially against any shocks from the US markets. Just think about what the war means.

In what has now become almost a commonplace, analysts are noting that as the economic crisis deepens, countries around the world will be desperately seeking the best deal for “stuff”, the best bang for their money. That’s exactly what China is in a position to offer.

By cornering Iran, the US has effectively triggered the Hormuz blockade. That’s 20% of global oil consumption shut away from the world economy. And this forces prices at the pump to fly up, increases inflation–not just for consumers, but for manufacturers making stuff. The only way to blunt this is to buy affordable goods from China. Now the trend we are seeing here today is only going to continue. All other markets in the world are buying more Chinese goods–from the EU to Latin America all the way to Africa. We are seeing strong double digit growth. Even the US was buying more over the last month or two. But it’s not just the volume [of China’s exports] going up. The value of exports is also rising. In other words, China is selling more goods and they are selling it at a higher price. Countries are still buying Chinese because it’s still the best bang for your buck. Trump believes he can play the Hormuz card against China, but it’s simply not going to work here.

The numbers, on the surface, do seem to make an argument for Trump. That’s what all the media likes to latch on to. Currently almost 40% of oil that transits through Hormuz goes to China. The big belief is that China must be highly dependent on the Middle East or Middle Eastern oil for its industries–if China loses this supply, the belief goes, their power bills will fly to the moon and their factories would collapse. But that’s not really the case. China is such a big energy importer that even those volumes are minute at best. Oil and gas makes up less than 5% of China’s power generation.

In fact, the Iran war is making China the big winner in Asian manufacturing–and global manufacturing, for that matter. And because of the Hormuz shutdown, Asia has a massive shortage of LNG. 85% of LNG exports head to Asia. China imports the most LNG, but the impact on their economy is near zero. That’s the blue dot. The LNG shortage is near zero as a percentage of GDP for China. You compare that to Korea, Japan, or Taiwan–they’re in a much rockier position. The gas shortage is going to hammer their industries and economies much harder than China. China’s power generation mix includes coal, nuclear, and renewables, so, the energy shock in the Middle East doesn’t really rattle them at all.

Trump is barking up the wrong tree. The Iran war is making China more dominant in Asia and around the world. When everyone is collapsing, the one who crashes the least wins. In other words, if the Iran war resolves tomorrow or even next year, China’s economy won’t collapse. In fact, it might grow even faster compared to other countries, especially against the G7.

Trump is afraid because the Hormuz closure might only be Part One of Iran’s strategy. There’s another choke point that the Iranians could target through their proxies. The Bab-el-Mandeb Strait is another waterway where oil is transported from the Red Sea to the rest of the world. And because of the Hormuz shutdown, producers like Saudi Arabia are desperately swinging exports westwards and using the Bab-el-Mandeb Strait. Iran has signaled that other resistance groups, maybe even the Houthis in Yemen might be joining the fight. And if they target the new choke point, we’ll have yet another massive oil supply shock. 6 million barrels a day flow through Bab-el-Mandeb. That would bring the total oil shutdown to 25 million barrels a day locked out. That’s 25% of global supply. It’s enough to trigger a bigger inflation shock any day. It’s that serious.

And don’t forget how reliant the US economy is on foreign capital inflows.

If the war doesn’t resolve soon and Trump keeps escalating, guys, the global economy will be on shaky ground. Oil prices above 100 bucks will be the norm and growth around the world is going to slow. That’s a big issue for the US economy because, if growth slows enough, countries everywhere will start ring fencing their own economies. They will bring back capital to their countries and US markets will be at risk of a major, of a massive, of a titanic selloff. And when asked about oil prices, the administration still doesn’t have an answer. They keep focusing on the Iranian retaliation. They just can’t seem to understand that US actions are also stoking a bigger regional crisis and, hence, a bigger energy crisis.

Q: So, can you give us some kind of projection here on how this will impact consumer prices and for how long?

A: The bottom line is again that the reason why futures uh markets for oil are dropping down towards 60 and even below 50 in the long run is that we expect that if Iran uh is stops being this disruptive terrorist or force in the Middle East that there will be a boom in in oil production and industrial production.

This won’t bode well for the world. In fact, this is a big domino that could trigger a recession for every country in the world. If inflation is driven high enough, no country can escape the fallout. And the numbers are not looking good–it looks like crude at $100 might be here to stay. Goldman Sachs just gave us a warning–it’s looking really dire out there. Oil is up by 40% and looks to stay higher for longer. Now, this could drive headline inflation higher by 0.6%. Global growth would also plunge by 0.3%. And if you ask me, these are all conservative estimates. The fallout will prove much more devastating.

No doubt Trump is panicking because he knows what this portends for the midterm elections—as the GOP more generally must be slowly coming to realize, as well.

For the US, this also complicates what the Fed is going to do. Instead of rate cuts in June, we might face big delays. The Fed might only cut in September and December. By then, the economic time bomb will go off and everything could collapse. It’ll be a financial nuclear winter. There’ll be financial mushroom clouds going off in the distance. And the longer Iran holds on, the worse things will get for Trump’s economy. There’s literally no way to blame Biden now for this one.

Now Foo gets into the Big Blunder. Back in the day, when the petro-dollar system was put in place, China wasn’t the industrial behemoth that it is today. Today, the Gulf States are dependent on Chinese and other East Asian countries for revenue—not the US. Trump’s closure of Hormuz is cutting off the Gulf States from their main source of revenue. The pressure will now be on for the Gulf States to shift East in a monetary sense to save their economies. And the Anglo-Zionists have only limited leverage to prevent this.

Could things get any worse? Well, it absolutely can. The Hormuz doesn’t just give Iran military leverage in the war. It allows them to start shifting global finance itself. It’s basically a financial strike on the dollar. And as we know the reserve currency has been facing de-dollarization efforts from China and Russia. Both countries are making gains–and Iran just put fuel on the fire. Iran is making a move against the petro-dollar and I bet the Trump team didn’t see this one coming. Iran just did a financial strike against the petro-dollar. They might allow ships through the Hormuz Strait but just like VIP entry at a club. There’s a very big restriction here. The oil cargo has to be traded in the Chinese Yuan or the RMB. So the barrels of oil have to be sold and bought using the Chinese currency. Obviously Iranian cargo is already priced in RMB. But Iran’s plan is multi-layered. They’re trying to divide oil buyers from the US dollar. It’s also a [big?] thumbs up to China that Chinese vessels can get safe passage through the strait of Hormuz. Iran is weaponizing Hormuz against Trump’s economy by targeting the dollar.

By itself this won’t break the USD tomorrow. But it does add significant pressure on dollar demand. Countries will literally be thinking, ‘Do I value transacting in dollars or do I value my own energy security?’ And if one country breaks, the rest will cascade down as well. And now oil companies will be forced to price their cargoes in the Chinese RMB. As a Gulf country, suddenly the coast is clear to move your cargoes through the straight, but only if you sell in the RMB and if the pain is bad enough and if Iran is serious about this, Gulf producers could break away from the dollar in droves to move their cargoes out of Hormuz.

Take Saudi Arabia’s trade with China. The majority of it, 83% centers around oil exports to Beijing. That’s over $50 billion a year that is trapped behind Hormuz. Saudi Arabia needs the money. The Iranian war isn’t just hammering their oil refineries. It’s hammering their export income as well. Without money, how can they finish their new city, pay for tons of welfare, plus make the transition away from fossil fuels? It’s going to be impossible. Iran’s move is a very clever one. It’s a reminder to the Gulf countries that they need revenue–and a warning to the US that things can absolutely get worse. Now China and Russia they have de-dollarized their bilateral trade by nearly 100%. And if Iran insists on this for access through Hormuz it would trigger a global shift away from dollars in the oil trade.

All this depends on how much Trump wants to escalate things. Iran is matching him move by move. The more outrageously the US wages the war, the harder Tehran is going to hit back. And besides deploying thousands of Marines to Hormuz, Trump now wants to get the whole of NATO involved. This is truly a tinder box:

Trump: Like, as an example, in many cases in NATO countries, we’re always there for NATO. We’re helping them with Ukraine as many. It’s, it’s got a notion in between us. Doesn’t affect us, but we’ve helped them. It’d be interesting to see what country wouldn’t help us with a very small endeavor which is just keeping The Strait [of Hormuz] open. That’s by comparison.

Uh, right.

We are in a wooden house soaked with gasoline and we are striking match after match, hoping nothing happens. Here’s the reality. Sooner or later something will happen and we could be in a global conflict before we know it. It’s really time to brace for impact.