Authored by Jonathan Turley,

“Enough is enough.” With those words, Senator Bernie Sanders (I., Vt) launched a push to impose a 5% annual wealth tax on America’s billionaires. With Rep. Ro Khanna (D., Cal.), the legislation, “Make Billionaires Pay Their Fair Share Act,” echoes the growing “eat-the-rich” mantra on the left — seeking to replicate a disastrous push in California that has led to an exodus from that state and an estimated loss of $2 trillion in taxable assets.

It is also flagrantly unconstitutional.

Under the plan, Congress would target 938 billionaires to tap them for $4.4 trillion. That money would then be redistributed as a $3,000 direct payment to every man, woman, and child in a household making $150,000 or less – $12,000 for a family of four.

The timing of the move is telling. Not only is it calculated before the midterm elections, in which the Democrats hope to retake power, but it follows the push by California Democrats and unions to impose a similar wealth tax in that state.

Khanna, who represents Silicon Valley, has supported the state law, which includes a ruinous provision for startup entrepreneurs. The law would not only be retroactive to try to trap wealthy taxpayers who have fled the state, but also base wealth calculations on the voting shares of corporate executives. Often, with start-ups, entrepreneurs hold greater voting shares than actual ownership. However, just in case they need more incentive to leave the state, they will be taxed as if their voting shares represented actual wealth.

The practical problem is that the wealthy, like their wealth, are mobile. As a result, many are fleeing California. So now Khanna is joining with the nation’s leading Democratic Socialists to ensure there is nowhere to hide in the United States.  For billionaires in California, they could be double-tapped for ten percent of their wealth.

It has long been the dream of the far left. Years ago, Sen. Elizabeth Warren delighted Democratic voters in her run for the presidency by telling the rich she was coming after “your Rembrandts, your stock portfolio, your diamonds and your yachts.” In one debate, she dramatically rubbed her hands together after saying she would take some of the wealth of fellow candidate John Delaney, a self-made millionaire.

In my book, “Rage and the Republic: The Unfinished Story of the American Revolution,” I discuss the growing threat of “economic factionalism” as politicians fuel rage against the wealthy based on the false premise that they are not “paying their fair share.” While there are good-faith arguments for adjusting tax burdens to address budget demands, the top 1 percent pays more taxes than the bottom 90 percent combined.

There is little reason to believe that a wealth tax targeting billionaires will not, if upheld, be later extended to lower tax brackets, starting with multimillionaires. That is the signature of economic factionalism, which feeds an insatiable appetite for greater wealth seizure.

The Sanders-Khanna plan is notable in its express commitment to direct wealth redistribution. It also explains why the left has made the packing of the Supreme Court a priority. As Harvard professor Michael Klarman explained years ago, the radical agenda to change the system to guarantee Republicans “will never win another election” requires control of the Supreme Court to uphold such measures.

The problem is that the Constitution bars the implementation of such a federal wealth tax. When the 16th Amendment was ratified, it allowed for federal income taxes, and only income taxes: “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”

The effort to expand federal taxation beyond income taxes will require either a constitutional amendment or an enabling, packed Court.

Nevertheless, these politicians will continue to dangle wealth distribution before voters. They will demonize figures like Mark Zuckerberg and Elon Musk for their wealth while ignoring that these same figures are wealth and job creators, driving our economic growth. Instead, Sanders declared that “Billionaires cannot have it all.”

The irony of Rep. Khanna (who has been floating a run for President in 2028) turning on his own constituents in Silicon Valley underscores the appeal of wealth-redistribution campaigns. He is turning the very heart of his state’s economic growth as state deficits and out-of-state migration increase.

For Sanders, the legislation is a key moment to advance his long-standing socialist agenda. He declared the beginning of the end of “unprecedented income and wealth inequality” in the United States through such redistribution. The stated objective of erasing wealth inequality highlights how this is just the start and the end of wealth taxation.

As discussed in Rage and the Republic, none of this is new. Countries like France previously targeted the wealthy, triggering an exodus of taxpayers and their businesses from the country. It had to reverse its policy as the economy collapsed.

Of course, many young people have no memory of such failures in the 20th Century. Instead, they are drawn to the very same soundbites used in France and Great Britain before disastrous experiments with socialism. With no experience with socialist economies, figures like socialist mayor Zohran Mamdani can entice voters to “the warmth of collectivism.”

There are legitimate concerns over the glaring and growing wealth gap in the United States. However, a wealth tax is neither a constitutional nor a practical way of addressing the problem.

Jonathan Turley is a law professor and the author of the New York Times bestselling “Rage and the Republic: The Unfinished Story of the American Revolution.”

Summary

• Shipping turmoil escalates as multiple vessels (at least six) struck overnight

• Brent crude oil prices top $100

• Dubai suffers significant drone attacks

• Northern Israel hammered by Hezbollah, “largest wave” of missiles since war began

• IDF says it struck key Iranian nuclear development site

• US Intel assesses Iranian regime remains intact

• Oman port operations halted

• Trump proclaims “we won”

*  *  *

Brent crude futures in Asian trading jumped above $101/bbl overnight, despite news of a planned record emergency SPR release by the International Energy Agency’s 32 member countries, in an effort aimed at capping triple-digit oil prices.

Today’s focus is on reports that IRGC forces struck two foreign oil tankers in the Gulf area, bringing the total to six vessels hit over the past 24 hours. Iranian kamikaze drones also struck an energy export hub in Oman, while IRGC naval mine threats in the Strait of Hormuz soared by midweek.

The Wall Street Journal reported that two oil tankers were struck in Iraqi waters. The U.K. maritime security agency UKMTO also said a containership was hit off the coast of Dubai, adding to earlier reports that three cargo vessels were struck around the Strait of Hormuz area. Also worth recalling is the dramatic video from yesterday showing an IRGC drone slamming into a critical tank farm in Oman.

Video footage from the deck of a Chinese cargo ship which allegedly shows the moment an Iranian one-way attack drone, a Shahed-136, struck an oil tank earlier today at the MINA Petroleum Facility on the Port of Salalh in Oman. pic.twitter.com/45KGfrjYak

— OSINTdefender (@sentdefender) March 11, 2026

The market reaction to the overnight hostilities, as Operation Epic Fury rages on this week and IRGC forces lob missiles and bombs at Gulf states, was a surge in Brent crude futures to the $101 handle.

Goldman’s Rich Privorotsky on the overnight energy market moves: 

A series of attacks across the Gulf has sent oil up nearly another 10% (fading to up 5%), with Brent back briefly through the $100 level. The move in products looks even more acute, with distillates leading. Quite telling yesterday that, after yet another Whitehouse jawbone and the IEA’s record reserve release announcement, oil still failed to come in meaningfully. Overnight  Reuters reported, “Iran has laid about a dozen mines in Strait of Hormuz, sources say” … if that is confirmed it’s not quickly reversible.

 Goldman expects longer disruptions on the Hormuz chokepoint:

Here’s where things get even more complicated: Six commercial vessels and oil infrastructure in the Gulf area were hit in IRGC strikes, and attention is now shifting to another critical maritime chokepoint.

Overnight, Iran’s semi-official Fars News Agency warned that the Houthis in Yemen and other Iran-backed groups could move to shut the Bab el-Mandeb Strait at the southern tip of the Arabian Peninsula.

The overnight chaos sent Brent crude back over $101/bbl, but it has since fallen to $96/bbl by 0630 ET. This comes after the IEA’s 32 member countries agreed on a “record” 400 million barrel release to cap energy prices. U.S. Energy Secretary Chris Wright announced that the U.S. will contribute 172 million barrels. As we explained to readers on Wednesday, this SPR dump is likely to have only a minimal impact.

Meanwhile, President Donald Trump told supporters in Kentucky last night that Operation Epic Fury was effectively over almost as soon as it began. “It’s just a question of when—when do we stop?” he said.

“Let me say we’ve won. You know, you never like to say too early you won. We won. We won, in the first hour it was over, but we won,” Trump said.

He added, “We don’t want to leave early, do we? We’ve got to finish the job.”

NOW – Trump declares “we’ve won” the Iran War. pic.twitter.com/vx0J9Z9SJr

— Disclose.tv (@disclosetv) March 11, 2026

It is clear that U.S.-Israeli operations have dealt a major blow to the IRGC’s conventional military capabilities, but the lingering threat will be asymmetric warfare, including drone attacks, naval mines, the potential sabotage of undersea cables, and a wide range of other low-cost, high-disruption weapons.

What’s important from the overnight (courtesy of Bloomberg):

Energy Market

• The Iran war is causing the largest supply disruption in the history of the global oil market, hitting 7.5% of global supply and an even bigger share of exports

• Oil prices surged above $100 a barrel as Iran escalated attacks on Dubai and shipping assets

• IEA members agreed to release an unprecedented 400 million barrels from emergency reserves to calm the market

IRGC Military Actions

• Iran escalated attacks on parts of Dubai with missile alerts and a drone that fell on a building in Creek Harbour on Wednesday night

• Iran says it maintains control over the strategic Strait of Hormuz and claims it carried out strikes on Israeli military and intelligence facilities

• Iran’s military announced the policy of reciprocal strikes has ended, stating, ‘from now on, our policy will be strike after strike’

• More than 2,100 Shahed-136 weapons have been fired so far, damaging oil infrastructure, shutting airports and destroying military hardware

US Security Warnings

• The US State Department warned that Iran and affiliated groups could be planning attacks on oil infrastructure owned by the United States in Iraq

• US Central Command warned that Iran is using civilian ports along the Strait of Hormuz for military operations, making them legitimate targets

• California Governor Newsom said he’s aware of potential drone strikes in California after FBI warnings that Iran has allegedly considered launching offensive drones against the West Coast

 Economic Impact

• Goldman Sachs and Citigroup told staffers in Dubai to stay away from their offices amid Iran threats

• On the Beach suspended its full-year guidance due to a ‘significant slowdown’ in demand following the Middle East conflict, with shares dropping as much as 15%

• Chinese oil refiners have begun canceling agreed refined fuel export cargoes as Beijing tightens curbs to cope with the war’s impact

Diplomatic Developments

• Iran has told regional intermediaries that for a ceasefire, the US must guarantee that neither it nor Israel will strike the country in the future

• A former IRGC chief said Iran would agree to no ceasefire until the country reaches a ‘definite outcome’

• The UN Security Council approved a resolution condemning Iran’s attacks on its Gulf neighbors including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE and Jordan

Related energy market reads:

• Oil “VIX” At 121 — Markets Aren’t Pricing De-Escalation

• Oil Volatility Is Exploding — And Something Is Starting To Break

• IEA Agrees To Release Record 400 Million Barrels From Emergency Stockpiles: Here’s Why This Will Have Little Impact

Is it too early for Trump to be calling a “win” when asymmetric warfare is still a very big threat and will be lingering for many weeks, if not months? As one pundit has pointed out: “Endurance regimes do not need clean victory to change the game. They only need to survive the shock while making the old equilibrium too costly for their adversaries to restore.”

The U.S. military’s reliance on Chinese rare-earth minerals is emerging as a strategic vulnerability as Washington’s conflict with Iran unfolds and President Donald Trump prepares for a closely watched visit to Beijing later this month.

US officials and analysts say the war has intensified concerns about supply chains for the specialized minerals used in advanced weapons systems, SCMP reports. According to people familiar with the issue, the U.S. may have only about two months of rare-earth inventories remaining, raising questions about how long current military operations could be sustained if access to Chinese supplies were disrupted.

As we noted in 2023, former Raytheon CEO Greg Hayes admitted that Beijing effectively has the US military’s supply chain by the balls thanks to its reliance on rare earths and other materials which come from, or are processed in, China.

According to Hayes, Raytheon has “several thousand suppliers in China,” because of which “decoupling … is impossible.“

“We can de-risk but not decouple,” he told the Financial Times, adding that he thinks this is the case “for everybody.”

“Think about the $500bn of trade that goes from China to the US every year. More than 95 per cent of rare earth materials or metals come from, or are processed in, China. There is no alternative,” Hayes continued, adding “If we had to pull out of China, it would take us many many years to re-establish that capability either domestically or in other friendly countries.”

Hayes’ comments underline the difficulties facing western manufacturers amid growing friction between China and the US and its allies.

Beijing in February imposed new sanctions on both Raytheon and US defence peer Lockheed Martin for supplying weapons to Taiwan. Hayes has also been placed under sanctions. 

The sanctions have had little commercial impact as the groups are not allowed to sell military equipment to China. Raytheon, however, has a substantial commercial aerospace business in the country through its engine subsidiary, Pratt & Whitney, and aviation systems and cabin equipment specialist Collins Aerospace. It has about 2,000 direct employees in China. -FT

Hayes – at least two years ago, said that the company is looking “to take some of the most critical components and have second sources but we are not in a position to pull out of China the way we did out of Russia.“

Now, concerns over the allegedly limited supply will loom over Trump’s planned meeting with Chinese President Xi Jinping scheduled to take place March 31 to April 2, according to a White House official, while people briefed on the discussions say rare-earth supplies could dominate the agenda when the two leaders meet.

Rabobank’s Michael Every has drawn parallels to the 1956 Suez Crisis, when the United States used financial pressure to force Britain and France to halt military operations in Egypt. In that episode, Washington’s leverage reshaped the geopolitical balance among Western powers.:

This is obviously of critical importance. To extend an analogy used yesterday, is China of 2026 the US of 1956 and the US of 2026 the UK and France of the Suez Crisis?  (This is as Germany may emulate Japan in shoring up critical minerals supply via joint purchasing from its key firms aimed at reducing reliance on China.)

Today, the roles could be reversed. China’s control over critical mineral supplies raises the possibility that Beijing may wield similar influence over Washington at a moment when U.S. military operations and industrial supply chains depend heavily on those materials.

Rare-earth elements – particularly heavy varieties such as dysprosium and terbium – are essential to the manufacture of high-performance permanent magnets, radar systems, missile guidance components and propulsion systems used in modern weapons. China has long dominated global production and processing of these minerals, leaving the U.S. dependent on imports for critical components of its defense industry.

A report this month from the U.S. Geological Survey found that China accounted for 71% of U.S. rare-earth imports between 2021 and 2024 (so obviously less reliant than 2.5 years ago). During that period, China was the sole supplier of certain heavy rare earths, including terbium, with no immediate alternative sources available.

Marina Zhang, an associate professor at the University of Technology Sydney’s Australia-China Relations Institute, told SCMP that the imbalance gives Beijing “significant indirect leverage over the duration and cost of potential conflicts,” creating what she described as an “asymmetric vulnerability for Washington,” potentially allowing China to influence geopolitical negotiations by tightening or loosening access to materials vital for weapons production.

Zhao Minghao, a professor at Fudan University’s Institute of International Studies, said Beijing is likely to press the U.S. to ease tariffs and export controls in exchange for assurances on stable rare-earth supplies.

The issue has gained urgency as the U.S. military burns through munitions in its campaign against Iran, which began Feb. 28. President Trump initially projected that the strikes could last four to five weeks but said Monday that American objectives had nearly been achieved and the crisis could end “very soon.”

The Washington Post, citing unnamed U.S. officials, reported that the Pentagon expended roughly $5.6 billion worth of munitions during the first two days of operations alone, highlighting the pace at which advanced weapons stockpiles are being drawn down.

While existing missile inventories could support several months of combat, replenishing them could prove difficult if access to Chinese minerals is constrained, according to Amanda van Dyke, founder of the industry think tank Critical Minerals Hub.

“Missile stockpiles are more than sufficient to sustain the Iran war for at least three to six months,” she said. “But restocking those munitions afterward may take much longer without Chinese minerals.”

The Trump administration has attempted to mitigate the risk by launching “Project Vault,” a $12 billion public-private initiative aimed at building strategic stockpiles of critical minerals. Industry analysts say the program may help but could fall short of meeting the specific needs of modern weapons systems.

China has already demonstrated its willingness to use rare-earth exports as leverage. In April, Beijing imposed export controls on seven medium and heavy rare-earth elements – including dysprosium and terbium – requiring special licenses for shipments abroad. The move came in retaliation for U.S. tariffs introduced under Trump’s so-called “Liberation Day” trade measures.

Additional restrictions introduced in October were suspended the following month as part of a temporary trade truce, though the earlier licensing requirements remain in place.

For Washington, however, the stakes may extend beyond trade. As the conflict in Iran continues and munitions stockpiles shrink, the availability of rare earths could become an increasingly central factor in both military planning and diplomacy.

 Top headlines of conflict 

• Oil prices surge as two oil tankers are attacked and explode in Iraqi waters, forcing Iraq to stop operations at its oil ports and sending oil toward $100/bbl.

• ‘Largest wave of missiles since hostilities began’ launched into northern Israel by Hezbollah

• The US Navy said it was ‘too dangerous’ to escort tankers through still.

• President of Iran demands reparations and guarantees against future aggression.

• Trump says the war with Iran will end soon, as there is ‘practically nothing left to target.” 

• Yet U.S. and Israeli officials plan at least two more weeks of strikes

• U.S. forces destroyed 16 Iranian mine-laying vessels in the Strait of Hormuz

• Iran’s drone production has been significantly degraded.

• The IEA is preparing its largest-ever emergency crude oil release to counter surging Brent and WTI prices.

• Casualty estimates: over 1,200 killed in Iran from U.S./Israeli strikes (plus civilian reports), 13 deaths in Israel from Iranian retaliation, and 140 U.S. service members wounded (mostly minor).

*  *  *

Update (1850ET): As night fell across the Middle East, Hezbollah launched a huge wave of at least 150 rockets rained down on northern Israel (Times Of Israel):

Lebanese terror group Hezbollah showered rockets and drones at northern Israel for hours, repeatedly sending hundreds of thousands of Israelis to shelters on Wednesday evening.

It marked the largest Hezbollah attack on Israel since hostilities intensified earlier this month, as the terror group began attacks to support its sponsor, Iran, which is under intense attack from a joint US-Israel air campaign that began on February 28.

An opening salvo of 100 rockets was launched around 8 p.m. as a missile from Iran targeted the central region of the country, in what Iran’s Islamic Revolutionary Guard Corps said was a coordinated attack. More Iranian missiles targeted the north and south of the country.

Footage shows Hezbollah’s large rocket barrage on northern Israel this evening. Around 100 rockets were fired, according to IDF assessments. pic.twitter.com/8wuG6J8kgg

— Emanuel (Mannie) Fabian (@manniefabian) March 11, 2026

This was followed by reports that two oil tankers have been hit by ‘explosive boats’ and were on fire in the Persian Gulf.

حريق كبير في ناقلة نفط قرب ميناء أم قصر جنوبي العراق. ترجيحات بأن النيران ناتجة عن استهداف مباشر للناقلة. pic.twitter.com/sc2rnsk8vd

— MUSTAFA SAADOON (@SaadoonMustafa) March 11, 2026

🚨 BREAKING: One of the oil tankers that was attacked by Iranian explosive boats in the Persian Gulf belongs to US based company @safeseagroup pic.twitter.com/4ogzMJLnae

— Amichai Stein (@AmichaiStein1) March 11, 2026

Apparently there are two unknown foreign tankers that have caught fire in Iraq’s territorial waters.

Stay connected, follow @MOSSADil. https://t.co/rI2C2thgfv pic.twitter.com/fHBP6tbWPO

— Mossad Commentary (@MOSSADil) March 11, 2026

Two foreign tankers carrying Iraqi fuel oil have been subjected to unidentified attacks within Iraqi territorial waters, causing both vessels to catch fire, according to security sources cited by Baghdad Today and according to the State Organization for Marketing of Oil (SOMO). The tankers are 

• Tanker SAFESEA VISHNU, flying flag of Marshall Islands and chartered by one of Iraqi companies contracted with SOMO
• Tanker ZEFYROS, flying flag of Malta and carrying condensate produced by Basra Gas Co.

The tankers – whose cargo was naphtha and condensate, both extremely flammable – were attacked while present in loading area.Tanker ZEFYROS was scheduled to head to Khor Al-Zubair Port on March 12 to load additional 30,000 tons shipment of naphtha. This incident negatively affects Iraq’s security and economy and also represents a threat to safety of maritime navigation and oil activities within Iraqi territorial waters, SOMO says.

The attack occurred in the waiting area near the Khor Abdullah waterway, approximately 11 miles from the export port caused a fire on the tanker, leading to significant damage to its structure.

According to an Iraqi port official speaking to the Reuters news agency, authorities have successfully evacuated 25 crew members from the two ships. Despite these efforts, the fires have remained ablaze on both vessels.

One tanker, which was flying a foreign flag, is believed to be American, though its specific nationality has not been confirmed. The attack took place within Iraq’s territorial waters, but no group has claimed responsibility for the incident.

It turns out that perhaps the area is not as “safe” as President Trump said it was. And as a reminder, the US Navy already said it was ‘too dangerous’ to escort tankers through still.

As a result of the tanker explosions, Iraq stopped operations at its oil ports. Iraq was one of the first Persian Gulf majors to start reducing oil production after the near-closure of Hormuz, followed by Kuwait and Saudi Arabia. The cuts forced forced the International Energy Agency to act with a co-ordinated release of 400 million barrels — a historic drawdown that is significantly higher than the volume that followed Russia’s invasion of Ukraine in 2022.

Oil prices are surging higher on the news with WTI back above $91 – now up on the week and 20% higher than yesterday’s lows…

Stocks tumbled back to the lows of the day…

Equities decoupled into the close from oil and bonds… the tanker explosion has recoupled that hopeful mistake…

Shortly after the spike in crude oil, the US Department of Energy sent out the following statement:

• UNITED STATES TO RELEASE 172 MLN BARRELS OF OIL FROM STRATEGIC PETROLEUM RESERVE – DOE

…clearly damage control to tamp down the fire underneath oil prices that are once again out of control.

*  *  *

Update (1012ET): The President of Iran, Masoud Pezeshkian, says he has spoken with the leaders of Russia and Pakistan, to whom he “reaffirmed Iran’s commitment to peace in the region.”

According to Pezeshkian, the only way to end the war is “recognizing Iran’s legitimate rights, payment of reparations, and firm int’l guarantees against future aggression.”

Talking to leaders of Russia and Pakistan, I reaffirmed Iran’s commitment to peace in the region. The only way to end this war—ignited by the Zionist regime & US—is recognizing Iran’s legitimate rights, payment of reparations, and firm int’l guarantees against future aggression.

— Masoud Pezeshkian (@drpezeshkian) March 11, 2026

Other notable headlines of the day: 

*Overnight: Hegseth proclaiming the day saw “most fighters, the most bombers, the most strikes” of the war yet – sending prices higher

IEA MEMBERS AGREE OIL STOCKPILE RELEASE OF 400M BARRELS – quick dip and then rip higher in oil prices

*TRUMP: US TOOK OUT JUST ABOUT ALL OF IRAN’S MINE SHIPS – oil reversed lower

*TRUMP: OIL COMPANIES SHOULD USE STRAIT OF HORMUZ – extended drop

*TRUMP PROMISES ‘GREAT SAFETY’ FOR OIL TANKERS IN STRAIT OF HORMUZ – further drop

*   *   *

Update (1012ET): President Trump on Wednesday said that the war with Iran will end “soon” because there is “practically nothing left to target.”

“Little this and that… Any time I want it to end, it will end,” Trump told Axios during a five-minute phone call, adding “The war is going great. We are way ahead of the timetable. We have done more damage than we thought possible, even in the original six-week period.” 

“They were after the rest of the Middle East. They are paying for 47 years of death and destruction they caused. This is payback. They will not get off that easy,” Trump said. 

So, Mission Almost Accomplished™ after the Trump administration has given estimates ranging from weeks to months for how long this might take.

Yet while Trump is signaling that the operation has largely accomplished its objectives, US and Israeli officials say there’s been no indication of when fighting might stop. As Axios notes further, Israeli Defense Minister Israel Katz said Wednesday that fighting will continue “without any time limit, for as long as necessary, until we achieve all the objectives and decisively win the campaign.” Meanwhile, Israeli and US officials say they’re preparing for at least two more weeks of strikes in Iran. 

*  *  *

Update (0930ET):

The most significant development in the Strait of Hormuz on Tuesday was the start of IRGC naval mining operations, which were met with massive U.S. firepower that destroyed 16 mine-laying vessels. As we continue monitoring the maritime chokepoint this morning after IRGC attacks on three commercial vessels, attention is now shifting to the IRGC’s drone production capacity, which appears to have been degraded.

Bloomberg reports that 2,100 Shaheds have been fired so far in the 12-day conflict. U.S. forces struck IRGC production facilities, disrupting large-scale manufacturing. The report is based on comments from a senior European official.

“Since the Houthis have produced UAVs under bombardment, one would think the Iranians can, albeit not at the same rates, since facilities have to be dispersed and makeshift workshops used,” Sid Kaushal, a senior research fellow at the UK-based Royal United Services Institute, told the outlet.

The Wall Street Journal reported earlier that Saudi Arabia’s kill-cost ratio, neutralizing $20,000 IRGC drones with $2 million-plus missiles, has spurred talks with a Ukrainian counter-drone company for cheap interceptor drones.

*  *  * 

America-Israel’s Operation Epic Fury entered its 12th day, with U.S. Defense Secretary Pete Hegseth indicating that the most intense phase of U.S. strikes is expected on Wednesday. Tehran responded with retaliatory strikes against Gulf neighbors, as Goldman’s foreign affairs chief warned of a growing risk of regional spillover (read here). Overnight, market attention centered on energy, with the IEA reportedly proposing its largest-ever emergency crude release to combat Brent and WTI prices, which have reached triple-digit territory. 

“The most fighters, the most bombers, the most strikes. Intelligence more refined and better than ever. So that’s on one hand,” Hegseth said. “On the other hand, the last 24 hours have seen Iran fire the lowest number of missiles they’ve been capable of firing yet.”

Around 0900 ET, the IEA is expected to announce plans for a massive crude release into the market to cap Brent and WTI prices, which surged near $120 per barrel at the start of the week. In a note to premium subscribers, we outlined several problems that could arise and why any such release would only offer temporary relief.

Read the note:

• IEA Proposes Largest Ever Oil Stockpile Release… There Is Just One Big Problem

Beyond the panic among G-7 leaders and the IEA over crude prices, the Trump administration has also pushed its own headlines on Tuesday in an effort to jawbone energy prices lower, as we explained here.

Jawboning headlines from G-7 and the Trump administration on Tuesday were shortly followed by headlines that Iran had begun mining the Strait of Hormuz. That came after President Trump warned Tehran not to “put out any mines” in the narrow waterway. Shortly afterward, the U.S. military said 16 Iranian mine-laying naval vessels had been eliminated. 

Overnight reports described heavy U.S. and Israeli strikes on IRGC targets, with damage reported to oil facilities, civilian sites, and a hospital in Bushehr taken out of service. Iran has claimed that nearly 10,000 sites have been hit overall.

There are currently no signs of de-escalation from either side, with IRGC spokesman Ebrahim Zolfighari warning the Trump administration at the start of the week: “If they can afford the price of oil at $200 per barrel, let them keep playing this game.”

The latest casualty report states that more than 1,200 people have been killed by U.S. and Israeli strikes in Iran, according to the Iranian Red Crescent Society, and 13 have died in Israel as Iran retaliated with missiles and drones.

Chief Pentagon spokesperson Sean Parnell said that 140 U.S. service members have been wounded in the conflict so far.

“The vast majority of these injuries have been minor, and 108 service members have already returned to duty,” Parnell said. “Eight service members remain listed as severely injured and are receiving the highest level of medical care.”

The latest and most critical overnight headlines (courtesy of Bloomberg):

Military Attacks

• The US and Israel are conducting strikes against Iran, hitting thousands of targets across the country and degrading missile launchers and command networks

• B-52 bombers have been used to strike Iranian ballistic missile and command-and-control sites

• More than 1,000 civilians have been killed according to a preliminary count by Human Rights Activists News Agency

• Israel struck Iranian drone launch squads, though the White House cannot confirm reports of 150 US troops injured

• A drone strike in Iraq’s Kurdistan region killed a member of an Iranian Kurdish armed opposition group, with the group blaming Iran for the attack

Regional Impact

• The UAE’s air defenses are intercepting missile and drone attacks from Iran, with loud bangs heard in Dubai

• Two drones fell near Dubai International Airport, injuring four people including two Ghanaian nationals and one Bangladeshi national

• Turkish President Erdogan warned the war must be stopped before it engulfs the region in flames

• The UAE President wrote a patriotic poem performed by the national orchestra honoring those protecting the nation

Energy Market

• The International Energy Agency is considering releasing emergency oil reserves of 300-400 million barrels, potentially the largest in its history

• The IEA is recommending a release of oil from strategic reserves exceeding 100 million barrels over the first month, according to sources

• Brent crude futures rose 5% to $92.47 a barrel while West Texas Intermediate climbed 5.8% to $88.27 early Wednesday

• Wood Mackenzie consultancy warns of oil prices potentially reaching $150+ per barrel due to the supply shock

• Brent crude briefly surged to $119.5 per barrel late Sunday in one of the most dramatic spikes in recent oil-market history

Strait of Hormuz

• President Trump threatened Iran in a Truth Social post with “military consequences” at a level “never seen before” if they were to place mines in the Strait.

• Iran unleashes naval mines across the critical waterway, followed by US military announcing 16 IRGC mine-laying ships in the area were “eliminated”

• Reuters says the US naval fleet is not ready for convoys through Strait

• US Secretary Wright deleted the tweet on US Navy escorted oil tanker through Strait – WH says premature

• IRGC Commander slams Wright for fake news

• Three vessels hit by projectiles in Strait of Hormuz

Diplomatic Developments 

• Russia is constantly in touch with Iranian leadership and willing to contribute to efforts to stabilize the region, according to the Kremlin

• Russian media argues that negotiations with the US always end with missiles hitting capitals, questioning Trump’s peace deal efforts

• President Trump warned Iran against laying mines in the Strait of Hormuz, threatening military consequences at a level never seen before

Top stories by outlet:

• Pipelines by-passing Strait of Hormuz (WSJ)

• IEA proposes record release from strategic oil reserves (WSJ)

• IEA proposes release of 300-400 million barrels (Bloomberg)

• United States not ready for convoys through Strait (Reuters)

• China’s oil refiners relatively insulated from war (Bloomberg)

• Qatar’s LNG shutdown tightens global gas supply (Bloomberg)

• UAE shuts down refinery after damage from drone (Reuters)

• ADNOC presses oil partners to transit the Strait (Bloomberg)

• Pakistan reiterates support for Saudi Arabia (Bloomberg)

• U.S. diesel prices in record weekly increase (WSJ)

• Iran war and shadowy short wave broadcasts (FT)

• Europe’s shift from nuclear was “strategic mistake” (Reuters)

• Israeli intelligence assessment indicates Iran’s new supreme leader was wounded at the start of the war (AP News) 

Polymarket odds for a US-Iran ceasefire are sliding:

Commenting on energy markets, UBS analyst Nana Antiedu cited Henri Patricot’s note on three scenarios in the conflict and potential oil/gas implications:

If there is a quick de-escalation of the US-Iran conflict by mid-March with no damage to critical oil infrastructure and flows via Hormuz resume, Henri Patricot sees Brent averaging $80/bbl in March, before dropping to the mid-$70s.

TTF gas prices would hold €50/MWh, before falling to the high-€30s in 2Q26. In the case where Hormuz disruptions persist for a month, both oil and gas markets would further tighten, increasing the pace of inventory drawdowns and supply shut from GCC countries.

Here, he expects oil prices to rise above $100/bbl in the second half of March, averaging $100/bbl in March and $78/bbl for 1Q26, before coming down to $90/bbl in 2Q26 as disruptions ease.

For gas, LNG supply would be reduced for longer, requiring more demand reduction, especially as spare capacity and storage are limited.

He would expect TTF to rise towards €80/MWh by end-March, averaging €65/MWh in March and €46/bbl for 1Q26, before coming down to €50/MWh in 2Q26.

In the final scenario, where there is extended disruption (longer than a month), Brent prices could average $110/bbl in March and might climb towards $150+ by 2Q26. On the gas side, TTF could average €73/MWh in March and rise to €80/MWh in 2Q26.

What’s clear is that the Middle East conflict has sent macroeconomic uncertainty soaring across the world, despite the White House saying the surge in energy prices is temporary.

The big headline this morning will be around 0900 ET from the IEA on crude inventory releases.

The shutdown of key gas export facilities in the Middle East is tightening global liquefied natural gas supplies, raising the risk of a deficit and pushing cargoes toward Asia as buyers compete for limited shipments, according to Bloomberg.

Ras Laffan in Qatar — the world’s largest LNG export complex — has halted production, while shipping through the Strait of Hormuz has also been disrupted. Bloomberg calculations based on 2025 output suggest that roughly three Qatari LNG cargoes are effectively removed from the market for every day the disruption continues. A smaller export facility in Abu Dhabi is also unable to ship, leaving about 20% of global LNG supply offline.

The tightening market is already reshaping trade flows. Ship-tracking data compiled by Bloomberg show that at least nine LNG cargoes originally bound for Europe have diverted to Asia since the fighting began, with the pace increasing in recent days as spare supply in the market rapidly dwindles.

“If this situation were to persist for multiple months, dragging well into the summer, there aren’t enough alternative LNG sources to sufficiently supply the global market,” said Mathieu Utting, an analyst at Rystad Energy. “The two other major LNG suppliers, the US and Australia, are already operating at full capacity with little room to increase utilization.”

The squeeze comes at a critical moment for both regions. Europe needs additional LNG to rebuild storage depleted during winter, while hotter-than-normal weather in parts of Asia is expected to boost air-conditioning demand in the coming months. Prices in both regions have surged over the past week, raising concerns about inflation and economic impacts.

“Asian buyers will need to supplement their term supply with spot cargoes,” said James O’Brien, head of LNG at D.Trading, a unit of Ukraine’s private energy company DTEK. “This will inevitably pull more Atlantic molecules east.”

Bloomberg writes that buyers in India, Bangladesh and Thailand have already turned to the spot market for additional supply, though some recent tenders for March delivery — including ones from India — failed to attract sellers because of limited availability and high prices.

52% of VG float is short, indirectly a short also on LNG. Good luck https://t.co/zC5o8OVOAZ pic.twitter.com/UHsamIacTt

— zerohedge (@zerohedge) March 6, 2026

New LNG supply from the US is unlikely to arrive quickly. While projects including Golden Pass in Texas and expansions at Corpus Christi and Plaquemines are progressing, additional capacity will come online only gradually.

Analysts say the disruption is also reducing the chances of a widely expected LNG glut this year. Morgan Stanley said any extension of the Qatar outage beyond a month “quickly brings a deficit,” after the bank had previously forecast 6 to 8 million tons of oversupply.

Rabobank strategist Florence Schmit estimates that each week of lost Qatari production cuts the expected surplus by about 1.5 million tons, leaving only a few weeks before the market tips into deficit.

“Markets are now facing a supply deficit even with higher US flows,” Schmit said. “The LNG glut has been delayed by a year.”

Submitted by Thomas Kolbe

Italian weeks in Brussels: Just days after Prime Minister Giorgia Meloni announced a hardline migration policy, openly defying Brussels’ globalist open-border agenda, she delivered a second shock.

At the start of the week, Italy’s Industry Minister Adolfo Urso called for the suspension of EU-wide CO₂ trading—or at least a profound reform. Rome calls it a hidden tax and laments the growing displacement of Italian industrial companies to non-European locations. A conclusion that will sound all too familiar in Germany.

EU climate policy is artificially driving costs ever higher across the board. Companies able to operate flexibly are losing patience with this fanatical clientelist politics. Investments are redirected elsewhere, jobs relocated—while the taxes politicians desire are collected abroad. Yet even this argument seems to fall on deaf ears in European politics, as the European taxpayer remains a convenient source of revenue. Unlike mobile capital, citizens can’t easily move their wealth and property out of reach.

It is high time European leaders confront the European Commission and its grotesque degrowth fantasies. The so-called green transformation is under evident legitimacy pressure, now that it is clear that the “green Hesperia”—a realm where economic rules and logic are suspended—will never exist. Brussels’ attempt to build a power base with its own “green” industrial sector as an economic foundation increasingly looks like a project of power-obsessed dreamers, hung around the private sector’s neck like a millstone.

While Italy is drawing a clear line and trying to distance itself from Brussels’ industrial pillage, few in German politics seem seriously concerned that the CO₂ credit system channels real capital from productive sectors into an unproductive green patronage economy, while feeding the moral self-assurance of climate-policy snake-oil merchants.

What is sold as “transformation” is in truth a large-scale impoverishment program, eroding both the middle class and its civic values. Prosperity comes from commitment to achievement, individual sovereignty, and freedom. Only a civilization already damaged allows an unqualified political elite to centralize power.

The European carbon market is a centralized redistribution scheme, which next year will extend to transport and heating sectors. Brussels is pushing its reach ever deeper into European citizens’ daily lives. Costs will rise—this much is certain. And no Strait of Hormuz energy blockade is required; Europeans can achieve this on their own.

Even Friedrich Merz proved in February, on the Welt podcast with Robin Alexander and Dagmar Rosenfeld, that he belongs to the group of green statists. There, he defended the European CO₂ mechanism as an indispensable pillar of transformation policy, a great achievement of European convergence. Riding together into summer’s decline, together into insolvency—was that Merz’s real meaning? Is the Chancellor a romantic of decay?

Just days before, he sounded entirely different. At an employers’ meeting in Antwerp, Merz—almost toxically masculine, in line with Italy’s government—called for radical reform of the climate-policy carbon plunder. The contrast between the two appearances could hardly have been starker.

Yet after nearly a year observing the Chancellor’s public appearances, one knows: Merz’s shifts and volte-faces are no exception—they are part of his political camouflage. Performative acts, distraction techniques aimed squarely at stabilizing polling. In this respect, he is a classic politician, whose speech stream generates emotional connectivity—or: form trumps substance.

His green-moral compass, however, functions reliably. Regulatory reform will not come with this man in Germany—nor will a rollback of the green transformation mechanism. Loyal voters can be certain: the Chancellor will deliver this as surely as he performs his recurring obeisance to the Social Democratic junior partner.

More than two points underscore the political importance of carbon trading.

First, it provides Brussels’ central body with its own steadily growing revenue stream, disguised from open taxation. Brussels thus gains autonomy and additional leverage in struggles with centrifugal forces in the Union—such as Viktor Orbán’s Hungary or Giorgia Meloni’s Italy.

Second, it creates the green art-economy: a reliable voter base for the established party cartel. It funds the NGO complex and ensures the future growth of the bureaucratic apparatus.

It is therefore logical that the true initiators of the green transformation—found mainly in German politics—will cling to this tool until sufficient domestic pressure forces a reversal. Such pressure can ultimately come only from civil society and the economy itself.

The question is: when will Germany join an alliance for regulatory reform?

The answer may lie in the accounts, stock portfolios, real estate, and cash reserves of the German middle class. Here, politics has hidden the activatable sedative of its welfare state—a calming agent gradually fed into the redistribution mechanism to buy social peace on the road to the green ideal society.

* * * 

About the author: Thomas Kolbe, a German graduate economist, has worked for over 25 years as a journalist and media producer for clients from various industries and business associations. As a publicist, he focuses on economic processes and observes geopolitical events from the perspective of the capital markets. His publications follow a philosophy that focuses on the individual and their right to self-determination.

Nothing like supply and demand and good ole’ price as a rationing mechanism…

Greek shipping billionaire George Procopiou quickly moved to capitalize on the surge in tanker demand when war broke out, dispatching at least five vessels through the Strait of Hormuz, according to The Chosun Daily. 

His move was driven by two key calculations: the massive freight rates oil-importing countries would pay to secure transport, and the lucrative fees oil producers offer to store crude at sea when onshore storage fills up.

Greek shipowners control the world’s largest fleet of oil tankers. Most are leased to energy companies to transport crude globally, though in tighter markets the vessels can also function as floating storage.

To reduce the risk of Iranian attacks while transiting the strait, Procopiou’s ships reportedly switched off their transponders and deployed armed guards on deck. According to reporting by The Wall Street Journal, however, the tankers would likely sink quickly if struck by a missile or drone. Crews undertaking the voyages are said to be receiving unusually high pay.

The report quotes industry sources that said Procopiou’s companies offered charter rates as high as $440,000 per day — roughly four times pre-war levels.

Procopiou controls several shipping firms, including Dynacom Tankers Management, Sea Traders (C Traders) and Dynagas. Dynacom alone operates about 70 vessels. Forbes estimates his net worth at around $4.7 billion. Shipping tycoons such as Procopiou wield significant influence in the global oil trade and maintain political connections in Washington.

The report also identified a potential beneficiary in Sinokor Merchant Marine. The company recently bought dozens of crude tankers and sent several to the Gulf before the conflict began. Sources said Sinokor leased some vessels to Abu Dhabi National Oil Company for offshore storage, earning freight rates of up to $500,000 per day. 

Authored by Steve Watson via Modernity.news,

Another day, another layer peeled back from the rotten core of establishment cronyism, as Keir Starmer faces a torrent of revelations about his handling of Peter Mandelson’s Epstein ties. With payoffs, lies, and deep state cover-ups on full display, this saga underscores how globalist insiders protect their networks at the expense of transparency and justice.

From appointing a known Epstein associate to ambassador, to doling out taxpayer cash after the fallout, Starmer’s judgment reeks of the same elite impunity we’ve seen across the Atlantic. As freedom-loving Brits demand accountability, the PM’s crew scrambles to spin this as “process followed”—but the facts paint a picture of betrayal.

The storm hit new heights today with the release of vetting papers showing Lord Mandelson received a £75,000 payoff after being sacked as UK ambassador to the US over his enduring friendship with the convicted paedophile Jeffrey Epstein.

‘Where does this leave the tattered reputation of our Prime Minister?’@MartinDaubney discusses the first tranche of the Mandelson files revealing that Sir Keir Starmer was warned that the former ambassador, Lord Mandelson, brought a ‘reputational risk’. pic.twitter.com/84vWC3jmhe

— GB News (@GBNEWS) March 11, 2026

Documents detail how Mandelson demanded over half a million pounds in compensation for losing his £161,000-a-year role. Foreign Office permanent secretary Olly Robbins justified the smaller package, writing: “This represents good value for money.” 

Chief Secretary to the Treasury James Murray signed off on it, stating he was “happy” to approve the payment, which included £34,000 in severance and cash in lieu of notice.

The papers confirm Starmer knew about Mandelson’s ongoing ties to Epstein when appointing him in December 2024. This comes amid a massive dump of Epstein’s emails by US authorities, exposing years of Mandelson’s communications with the financier.

🚨 Wow.

The Mandelson files are up.

They prove Starmer WAS advised and warned about Mandelson’s appalling friendship with Epstein.

Starmer appointed him anyway.

Starmer lied.

Starmer must resign. pic.twitter.com/1yjYioVJhK

— Zia Yusuf (@ZiaYusufUK) March 11, 2026

Starmer only released the material after a Labour MP revolt forced his hand. Today, his chief minister Darren Jones handled the Commons statement, dodging a direct grilling for the PM.

The timeline of Mandelson’s Epstein links stretches back decades, riddled with leaked secrets and personal favors. In 2002, Mandelson attended a party at Epstein’s Manhattan home with other elite figures.

Mandelson files rock Starmer: Labour grandee was handed £75,000 payoff after being sacked as US ambassador – and PM DID know he stayed friends with Epstein https://t.co/JKafime6Y5

— Daily Mail (@DailyMail) March 11, 2026

By 2003, Mandelson called Epstein his “best pal” in a message. Bank statements suggest Epstein paid £54,750 into accounts linked to Mandelson that year.

In 2006, as Florida police eyed Epstein for charges involving minors, Mandelson emailed: “I am here whenever you need.”

Even after Epstein’s 2008 conviction, Mandelson urged him to “fight for early release” via email. In 2009, while Epstein was jailed, Mandelson reportedly stayed at his Manhattan apartment.

Ex-UK ambassador to US Peter Mandelson pictured standing in his underpants in Epstein files dump https://t.co/T5wMhbYz9p pic.twitter.com/PjLCy8uHR2

— New York Post (@nypost) February 1, 2026

Post-release, Epstein sent Mandelson’s husband Reinaldo Avila da Silva £10,000. Mandelson allegedly leaked a sensitive No10 document on £20 billion asset sales and Labour’s tax plans on June 13, 2009.

In 2010, he forwarded minutes from a meeting between Chancellor Alistair Darling and US Treasury Secretary Larry Summers just five minutes after receiving them, and tipped Epstein on a €500 billion EU bailout.

Contacts persisted until at least 2016, with Mandelson visiting Epstein’s New York mansion as late as 2013.

Starmer has since apologized for believing Mandelson’s “lies” about the relationship’s extent. He pledged “urgency and transparency” in disclosures.

Former No10 aide Nick Butler, whose memos Mandelson shared with Epstein, lamented: “I’m very sorry there’s been no note of contrition from Peter Mandelson to the people whose trust he broke.” He added: “For the system I think it will make people just wonder what people are doing with the information that they pass round.”

Mandelson was arrested February 23 on suspicion of misconduct in public office for passing sensitive info to Epstein while business secretary. He’s denied wrongdoing and remains under investigation.

This scandal echoes the ongoing Epstein probes we’ve covered, like police swarming his Zorro Ranch in search of strangled girls’ bodies, highlighting the grim underbelly of elite networks.

It also links to royal fallout, as King Charles reacted to brother Andrew’s arrest in the Epstein scandal, showing how these ties involve elite figures across borders.

The Mandelson files strip away the facade of accountability in Labour’s ranks, exposing how insiders like Starmer prioritize loyalty over integrity. As more documents drop, expect the web of deceit to unravel further.

Your support is crucial in helping us defeat mass censorship. Please consider donating via Locals or check out our unique merch. Follow us on X @ModernityNews.

Authored by James Gorrie via The Epoch Times (emphasis ours),

For decades, the U.S. dollar has been the foundation of the global financial system. It dominates trade settlement, anchors central-bank reserves, and underpins international financial networks such as SWIFT. That status has given Washington enormous economic and geopolitical leverage.

But from Beijing’s perspective, that same system is a strategic vulnerability. Because the dollar sits at the center of global finance, the United States can use it to enforce sanctions, control financial flows, and shape geopolitical outcomes.

China’s response has been a long-term strategy known as de-dollarization, which involves a sustained effort to reduce the world’s dependence on the U.S. currency through alternative trade mechanisms, financial institutions, and payment systems.

At the same time, many of Washington’s recent economic and geopolitical actions—such as tariffs, sanctions, and strategic control of global trade infrastructure—are rightly interpreted as efforts to reinforce the power of the dollar-based system and slow the emergence of alternatives.

BRICS and China’s Vision of a Multipolar Financial Order

One of Beijing’s most important tools for reducing dollar dependence is the BRICS bloc, originally formed by Brazil, Russia, India, China, and South Africa.

Collectively, BRICS countries represent more than 40 percent of the world’s population and a growing share of global GDP, giving them significant potential influence over the future of international finance.

Within BRICS, China has pushed for trade settlements in national currencies rather than dollars, encouraging bilateral currency swaps and alternative payment systems that bypass Western financial infrastructure.

The bloc has also created new financial institutions—such as the New Development Bank and the Contingent Reserve Arrangement—to provide alternatives to Western institutions like the IMF and World Bank.

For Beijing, these initiatives are the foundation of a multipolar financial system in which the yuan and other currencies gradually reduce the dominance of the U.S. dollar.

Tariffs and Economic Pressure: Reinforcing Dollar-Centered Trade

From China’s viewpoint, U.S. tariffs demonstrate how Washington uses economic policy to shape global trade in ways that ultimately reinforce the dollar system.

They’re not wrong.

The United States has imposed extensive tariffs on Chinese imports during the ongoing trade conflict between the two countries. The impact has been inconsistent but significant.

Average U.S. tariffs on Chinese goods have at times exceeded 40 percent and have covered virtually all imports from China, dramatically reshaping supply chains and trade flows.

In response, China has imposed retaliatory tariffs on U.S. goods, escalating the trade conflict and pushing both countries toward partial economic decoupling.

From Beijing’s perspective, such trade policies highlight why reliance on a dollar-centered global economy can be risky.

If access to U.S. markets or financial networks can be restricted through policy decisions in Washington, then building alternative trade systems becomes a strategic necessity.

Energy Politics: Venezuela and the Dollar Oil System

Energy markets represent another major arena in the competition between dollar dominance and emerging alternatives.

By the time the United States deposed Venezuelan leader Nicolás Maduro, China had invested billions of dollars in Venezuela’s energy sector over the past two decades in order to secure long-term oil supplies through infrastructure investment and financing agreements.

However, U.S. control over Venezuela’s oil industry has dramatically restricted its ability to export crude and access global financial markets.

What’s more, because most global oil transactions are still conducted in dollars, sanctions that restrict dollar-based payments can effectively isolate countries from energy markets.

For China, this reinforces the need for alternative settlement systems that would enable energy trade outside the dollar framework.

US Control of Strategic Trade Routes

Trade infrastructure is another crucial pillar of the dollar-based global economy. That’s why the Trump administration has increased its focus on limiting Chinese influence in Panama and securing the canal as a strategic asset.

The Panama Canal is one of the most important shipping routes in the world, handling a large share of global maritime commerce, including a significant portion of U.S. container traffic.

Washington has expanded security cooperation with Panama and emphasized that the canal must remain free from Chinese geopolitical influence.

From Beijing’s perspective, the new Panama policy reinforces the existing global financial order, which is still largely built around dollar-denominated trade.

Sanctions, Iran Attacks, and Financial Power

The U.S. attacks against the Islamic regime in Iran policy is perhaps the most strident example of how the Trump administration is defending the dollar against China and leveraging its geopolitical advantage. In short, restricting Iran’s energy flows to China helps bolster the dollar and its global infrastructure.

Because global banks and payment systems rely heavily on dollar-clearing networks, countries targeted by U.S. sanctions often find themselves effectively excluded from international finance.

Leveraging power against Iran is a prime example. Even before the ongoing war against Tehran, U.S. sanctions significantly restricted the country’s ability to access global banking systems and export oil through conventional financial channels.

From Beijing’s perspective, such developments are not just geopolitical events but deliberate acts to block its progress toward establishing a financial architecture that can operate independently of Washington’s control.

The Dollar’s Enduring Advantage

Despite China’s efforts, the dollar remains deeply entrenched in the global economy.

According to international financial data, the U.S. dollar still accounts for roughly 57 percent of global foreign-exchange reserves, far exceeding any competing currency.

That dominance reflects the powerful network effects of global trade contracts, financial markets, and banking systems that are deeply intertwined with the U.S. economy.

But China’s long-term strategy is to build a financial ecosystem that gradually greatly reduces Washington’s ability to shape global economic outcomes.

A Currency Contest for the 21st Century

In this sense, the struggle between the United States and China is not just a trade war or a geopolitical rivalry; it’s an all-out contest over controlling global finance.

Washington’s tariffs, sanctions regimes, energy policies, and strategic control of trade routes all reinforce the current dollar-centered system.

Beijing’s tactical response includes expanding BRICS cooperation and adoption, currency diversification, digital yuan experiments, and alternative financial infrastructures to create a world in which U.S. financial dominance is no longer absolute.

Whether that vision succeeds remains uncertain. The dollar’s advantages are immense and deeply embedded in the global economy. The future of global power may increasingly hinge not just on military strength or economic output, but on which currency system the world ultimately trusts to move its money.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.

In the latest indication of a sea change in US politics, a Republican Florida gubernatorial candidate who’s made opposition to US support of Israel a cornerstone of his campaign is winning the young-GOP vote by a wide margin. Combining social media savvy with oratorical flair, the Georgetown dropout-turned-investor and hedge fund manager is likely to continue making gains in his long-shot drive to succeed term-limited Ron DeSantis.

Whatever the final tally, however, his domination of the youth vote may portend the end of the GOP’s role as bastion of support for Israel.  Chasing Trump-endorsed frontrunner Byron Donalds, James Fishback has only reached mid-single-digits among the broad GOP electorate. However, among 18-to-34-year-olds, Fishback trounces Donalds, 32% to 8%. 

BREAKING: I’m running to succeed Ron DeSantis as Florida’s next Republican Governor to make life more affordable for you and your family.

I’ll stop the H-1B scam, tell Blackstone they can’t buy our homes, cancel AI Data Centers, and abolish property taxes. pic.twitter.com/IMDs4kPC9l

— James Fishback (@j_fishback) November 24, 2025

Fishback’s campaign stresses a hot-button issue for younger voters: affordability. Along those lines, he’s proposing the elimination of property taxes on homesteaded houses, abolishing tolls, and blocking data centers to ease pressure on electricity prices. He also opposes H-1B visas, with the idea of preserving job opportunities for Floridians. He wants to lower the age for any firearm purchase to 18, seeks an abortion ban, and has proposed a 50% sin tax on OnlyFans creators to pay for teacher salaries and school lunches. Opposing mass surveillance, he’s promised to “ban Palantir from every government contract in Florida.” 

However, it’s Fishback’s pointed rhetoric about support for the State of Israel that marks his campaign as a watershed in US politics — because it’s coming from the mouth of a Republican, and is clearly resonating with young conservatives. His statements have only grown more pointed with the launch of the US-Israeli war on Iran. Speaking on the campaign trail last week, he offered this frontal assault:  

FISHBACK: Israel roped us into this war because they are TOO COWARDLY to fight for themselves!

If they were so convinced that Iran was a threat, they could have done it themselves, but they want to spill OUR BLOOD, OUR TREASURE, spend OUR MONEY, because the Israeli government is… pic.twitter.com/L5y7W7dj8Z

— Chris Nelson 🏝️🇺🇸 (@ReOpenChris) March 5, 2026

At a gathering with voters this week, a US Marine Corp reservist asked Fishback to sign his helmet. He did so, writing, “No American should die for Israel” on the Kevlar helmet. (We’re guessing the Marine will soon be in his commander’s office.) When Fishback announced what he’d written, the young-male-dominated crowd cheered heartily: 

🇺🇸 A Marine asked a Florida governor candidate to write on his helmet.

He wrote: “No American should die for Israel.”

And that’s coming from a Republican.pic.twitter.com/QSiGAy0QJB

— Mario Nawfal (@MarioNawfal) March 10, 2026

Foreign policy may strike some as an irrelevant issue in a governor’s race, but note that many state governments have enmeshed themselves with Israel — for example, passing laws that prohibit state contractors from boycotting Israel, or imposing laws against “antisemitism” that apply an exceedingly broad definition of that term so as to conflate criticism of Israel with bigotry. Then there are the financial links: Fishback has promised to divest all $385 million that Florida has invested in Israeli government bonds, saying, “No public funds should ever be sent to a foreign government anywhere in the world.”

Fishback has ridiculed Donalds for his taking money from the Israel lobby, calling him “AIPAC Shakur.” When Donalds dared Fishback to say it to his face, Fishback tried to do just that at a Donalds event, but was ushered off the property by police. “A real black man would’ve stood on business,” Fishback then wrote to his more than 230,000 followers on X. 

Fishback ruffles feathers at every turn of his campaign. For example, he was accused of racism for saying the black Byron Donalds “wants to turn Florida into a Section 8 ghetto,” using a creative, alternate spelling of his opponent’s first name:    

By’rone wants to turn Florida into a Section 8 ghetto https://t.co/y0bjhWNxvN

— James Fishback (@j_fishback) January 11, 2026

Fishback has been called America’s first “Groyper” candidate, referring to a strain of nationalist conservatism associated with anti-Israel podcaster Nick Fuentes. While many seeking public office would resist being associated with Fuentes and the Groyper movement, Fishback has praised the podcaster’s followers.

“I’ve found the audience of young men who follow and watch Nick Fuentes to be actually incredibly informed and insightful and very patriotic,” he told an interviewer. After that remark elicited condemnation, Fishback posted a video statement to LinkedIn. He deceptively struck a tone that would lead an audience to think he was going to walk back the praise — then did the opposite:

“I want to clarify some comments that I made this week rather abruptly in a live interview about the young man in our country who watch and follow Nick Fuentes. I wanna clarify and apologize for absolutely nothing…Too often these days, young white men are discounted and told their opinions don’t matter, that they are toxically masculine, … that their contributions don’t matter…We can never, ever sell out the people who built this country.”  

Last night, I was confronted by an Israel supporter about @NickJFuentes.

Free speech and open debate are the only way forward. pic.twitter.com/wjU5hxuTv3

— James Fishback (@j_fishback) March 10, 2026

Putting an exclamation point on the Groyper and alt-right association, the Fishback campaign’s merchandise store offers a t-shirt featuring Pepe the Frog holding a sign that reads, “Don’t care, still voting Fishback.” With 46% of young Florida Republicans still unsure whom they’ll support, it’s not clear how big Fishback’s upside is, but he still has five more months to chase it: The Florida primary is on Aug. 18. 

Insanely humbling https://t.co/RSN4XjMkB1

— James Fishback (@j_fishback) March 10, 2026