pull down to refresh

The world stage is shifting, and recent events suggest we may be entering a period of unprecedented global conflict that could last for years. But is this just another regional skirmish, or are we truly witnessing the dawn of a new world war? This article delves into the unfolding situation, drawing on geopolitical analysis and game theory to understand the potential ramifications of this escalating crisis.

Are the recent sparks in the Middle East the beginning of a larger conflict? Perhaps WW3 started, between US and Iran. It may just be the continuation of what was started earlier in Ukraine. The evolutions of facts point to a significant escalation of tensions in the Middle East. Reports indicate that the United States and Israel have initiated attacks against Iran, marking today the fourth day of what could become a protracted and devastating war. Westerners don't work on weekends, that's why we are seeing now the full scope and duration of this conflict with more clarity and the potential for it to reshape the global landscape is undeniable.

Early reports suggest that the initial strikes targeted high-level Iranian leadership, including a "decapitation strike" against the Supreme Leader of Iran Ayatollah Ali Khamenei and its family. It was initially denied by Iranian authorities, state media eventually confirmed the leader's death in an airstrike. However, the narrative surrounding this event is crucial. From the Iranian perspective, this death is being framed as a martyrdom, a sacrifice for the people and their faith.

Why is this particularly important? Within the context of Shia Islam, the martyrdom holds a central and powerful role. The death of the leader could galvanize the Iranian population into action and fuel a jihad, a religious war, against perceived enemies.
Further complicating the situation, reports also indicate a strike on a school in Iran, resulting in the deaths of numerous children. While the Israelis claim the school was near a military base and that an errant Iranian missile was responsible. The Iranians insist it was a deliberate attack. This event, regardless of its true origin, serves to further inflame tensions and solidify the commitment to war.

In the other side of the Persian Gulf, for years, Dubai has been a haven for wealthy Westerners, drawn by its economic opportunities, tax-free environment, and perceived safety. However, the recent attacks by Iran on the Gulf Cooperation Council (GCC) countries, including Dubai, have shattered this illusion. Dubai's long-term viability as a safe haven is now dead. Westerners are unlikely to continue investing and residing in a city vulnerable to attacks. This shift could have significant economic consequences for Dubai and the broader GCC region. Note that the GCC is the lynchpin of the American empire selling oil for US dollars, which are then reinvested in the American stock market.

But why would Iran target the GCC and seemingly neutral parties? The answer lies in the GCC's role as a host for American military bases and its allowance of Israeli and American use of its airspace. As the GCC may present itself as neutral, its indirect support of US and Israeli actions makes it a legitimate target in Iran's eyes.

Bahrain in particular emerges as a vulnerable location due to its strategic importance and internal dynamics. It hosts the American Fifth Fleet, a major naval base in the Middle East, making it a prime target for Iranian attacks. More significantly, Bahrain's population is predominantly Shia, the same sect of Islam as Iran, while the ruling government is Sunni. If Iran is attempting to ignite a religious war within Bahrain, it will potentially lead to a Shia uprising against the Sunni government. If that's the case, Bahrain will be the first to fall.

In this environment, geography plays a crucial role in understanding the potential trajectory of this conflict. The Strait of Hormuz, a narrow waterway connecting the Persian Gulf to the Indian Ocean, is a critical chokepoint for global oil supplies. Approximately 20% of the world's oil flows through this strait, destined for major economies in Asia, including India, China, and Japan. Iran's closure of the Strait of Hormuz could have devastating consequences for the global economy and the GCC, heavily reliant on food imports, would face starvation if the strait were closed.

Another geographical asymmetry in this conflict is Iran's Mountain Fortress vs. the GCC's Exposed Desert. Iran's mountainous terrain provides natural cover for missile and drone bases, making it difficult to target its offensive capabilities. In contrast, the GCC's flat desert landscape offers little protection against attacks. Ideally Iranians could easily destroy the GCC at any time.

However, Iran also faces its own vulnerabilities, particularly regarding water scarcity which US and Israel plan to prfioritize for attack and destroy.

If geography is not enough cultural asymmetry between the US and Iran is another major factor to consider, not just in resources but also in their approach to warfare. The US, with its vast military budget and advanced technology, relies on expensive and complex weapon systems designed for large-scale conventional warfare. Iran, facing economic sanctions and limited resources, has adopted a strategy of asymmetric warfare, utilizing cheap and readily available technologies like drones. US military's focus on Cold War-era doctrines and its susceptibility to corruption have left it ill-equipped to effectively counter Iran's asymmetric tactics. Lastly on this aspect, US military is designed to impress and scare people, but it isn't resilient, innovative, or open at all.

Beyond military capabilities, there is few key vulnerabilities within Iran, facing a severe water crisis, with many regions experiencing extreme water stress. A fragile weakness that could be easily attacked by Iran and US. The second vulnerability is about Iran being a multi-ethnic country. With various minority groups residing along its borders could make it easy to divide into ethnic archives and have them fight over water internally.

Faced with these challenges, Iran's strategy revolves around unifying the Muslim world against the perceived aggression of the US and Israel, possibly by the creation a jihad to unite all the Shia against the Western Empire, create an uprising, rally the people who hate their governments and overthrow them.
Iran wants to become the leader of the Islamic world.

The high stakes of this conflict is its potential to cause economic collapse and the risk of a wider global war. US financial markets are one of the safest places where you can put your money. In this scenario, the GCC no longer has access to US dollars, they're forced to spend whatever resources they have on protecting themselves and consequently the stock market collapses.

The situation in the Middle East is complex and rapidly evolving. The potential for escalation is high, with significant implications for regional stability and the global economy.

Applied Game Theory allow us to understand what's happening on the ground and where this could lead us. What do you think? Will this conflict remain contained, or will it escalate into a larger global war?