Escalation: Trump vs. Iran

Escalation: Trump vs. Iran

The US and Iran are headed down a dangerous path.

On April 22, President Donald Trump tightened the screws on Iran's economy by announcing that China, Japan, India, South Korea, Turkey, and others would no longer be granted exemptions from US sanctions to continue buying Iranian oil, the country's most important export.

On May 5, US National Security Advisor John Bolton announced the deployment of a carrier strike group and bombers to the Middle East in response to "indications and warnings" that Iran threatened US forces.

Iran then announced this week that it would mark Wednesday's one-year anniversary of Trump's decision to withdraw from the Iran nuclear deal by ending compliance with two provisions of that agreement.

In particular, Iran's President Hassan Rouhani warned that if the five other countries who signed that agreement—France, Germany, the UK, China, and Russia—don't act within 60 days to help Iran weather the economic storm created by US sanctions, Iran will ignore the deal's limits on uranium enrichment, setting it on the path, once again, to acquire a nuclear weapon.

A few things to keep in mind as you follow the progression of this story:


  • Trump has avoided aggressive military action, because he knows it has undermined the popularity of past presidents. He's made plenty of threats—against North Korea, Venezuela, and Iran, for example—but he's avoided ambitious commitments that come with high risk and long-term costs.
  • The president's national security advisor does not share his reluctance to use military force. John Bolton has been calling for regime change in Iran for more than a decade, and he authored a New York Times op-ed in 2015 under the headline "To Stop Iran's Bomb, Bomb Iran."
  • Trump may be suspicious of Bolton. A piece in Wednesday's Washington Post reported that anonymous "administration officials and White House advisers" claim that Trump has complained aloud that Bolton is pushing him toward military action in Venezuela. If nothing else, this story suggests that some in the White House are worried about Bolton's influence–on Venezuela, if not Iran. On Thursday, Trump said this to describe his relationship with Bolton: "John has strong views on things… I actually temper John, which is pretty amazing. Isn't it?
  • Iran's economy is in real trouble. Its leaders may feel they have little to lose by pushing the Europeans to provide an economic lifeline by threatening the nuclear deal. Trump's decision to reimpose sanctions has pushed the country into a deepening recession. GDP is projected to fall 6 percent this year, according to the IMF, making it one of the toughest periods since the Iranian Revolution in 1979. Its currency has lost nearly 60 percent of its value since sanctions were reimposed. Price inflation topped 30 percent last year and will rise even more quickly this year.
  • Europeans will do little to help Iran. The UK, France, and Germany have made clear they believe Iran has kept its end of the nuclear deal and that Trump was wrong to withdraw from it. In January, they created a payments system to help maintain trade in non-sanctioned food, pharmaceutical products and consumer goods with Iran. But Europe is struggling to convince companies more worried about losing access to US consumers than Iranian markets to keep operating there. And they warn they can't continue to abide by terms of the nuclear deal if Iran renounces important parts of it.

The bottom line: Tensions are rising quickly, and for now there is little ground on which the US, Iranian, and European governments can compromise.

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Back in August, when the Taliban took over, we asked whether anyone in the international community would recognize them. Now it looks like things are heading that way.

This week, the Kremlin hosted a summit with the Taliban that was attended by China, India and Pakistan, as well as all five Central Asian Republics.

The domestically-focused US, however, wasn't there. The US continues to maintain that the Taliban can't be trusted. But does it matter? In 2021 does a Taliban-led government even need American recognition to function and thrive?

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Taking place on October 21 and 22, the Sustainability Leaders Summit will go beyond preexisting narratives and debate priorities for governments and industries ahead of COP26. Placing the spotlight on Asia's role in the global sustainability agenda, the event will address whether Asian countries and companies can achieve shared sustainability goals, and what is needed to help get them there. The summit will be co-hosted by Tak Niinami, CEO of Suntory Holdings, and Ian Bremmer, founder and president of Eurasia Group and GZERO Media. We will address three key questions: How can Asian countries, with the help of the private sector, achieve shared Sustainability Goals? Why does this matter? And what are the policy changes needed to bring it about?

Attendance is free and open to the public. Register to attend.

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Rudd joined for the first of a two-part Sustainability Leaders Summit livestream conversation sponsored by Suntory. Watch here and register here to watch part two Friday 10/22 at 8 am ET.

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It hasn't been a good run for Uncle Joe in recent months. What issues are tripping him up?

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Ian Bremmer shares his insights on global politics this week with a look at the NBA's latest rift with China, Brazil's Senate investigation, and COVID booster shots.

China wipes Boston Celtics from NBA broadcast after the "Free Tibet" speech from Enes Kanter. Is NBA boxing itself into a corner?

Nice mixed sports metaphor there. NBA has some challenges because they are of course the most progressive on political and social issues in the United States among sports leagues, but not when it comes to China, their most important international market. And you've seen that with LeBron James telling everyone about we need to learn better from the Communist Party on issues like Hong Kong and how Daryl Morey got hammered for taking his stance in favor of Hong Kong democracy. Well, Enes Kanter's doing the same thing and he's a second-string center. Didn't even play yesterday and still the Chinese said that they were not going to air any Boston Celtics games. Why? Because he criticized the Chinese government and had some "Free Tibet" sneakers. This is a real problem for a lot of corporations out there, but particularly publicly, the NBA. Watch for a bunch of American politicians to make it harder for the NBA going forward, saying how dare you kowtow to the Chinese when you're all about "Black Lives Matter" inside the United States. No fun.

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Jon Lieber, head of Eurasia Group's coverage of political and policy developments in Washington, shares insights on US politics:

A Trump media platform? Is this for real?

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