By Sylvia Demarest, Substack, 6/18/26
History in the Making
June 17, 2026, could be remembered as a day that changed the course of history. In a bewildering series of statements from the G-7 in Paris, France, President Donald J. Trump declared that peace with Iran and the opening of the Strait of Hormuz was necessary to prevent a world economic crisis. President Trump also acknowledged that the US was weeks from an energy cliff, and that he did not want to become the modern Herbert Hoover and preside over another Great Depression. In the words of the Wall Street Journal Trump Signs Iran Deal, Says He Wants to Avoid ‘Economic Catastrophe’.
Here’s Trump later on the 17th:” The alternative would be a worldwide depression. Stupid people want to have a worldwide depression. They are stupid people. Number one, the strait would never open.”
Perhaps without recognizing the symbolism, Trump signed the Memorandum of Understanding with Iran later that same day, 3 days early, at the Palace of Versailles in France. This palace was where the Treaty of Versailles was signed on June 28, 1919, officially ending World War 1. The Treaty is viewed with ignominy as setting in motion events that would eventually lead another World War.
The remaining hurdle is Israel opposition to peace, and Israel’s invasion of Lebanon. The MOU calls for Israel to withdraw from Lebanon. Israel has refused. Israel and her allies will try to upend this peace effort.
The effect of the war on Iran has not only been to drive a wedge between the US and Israel, it has also revealed the weaknesses of the US military to the world. This is directly related to the fact that the US Military Industrial Complex is essentially a money laundering operation that has resulted in the US falling behind its rivals in military technology–despite spending trillions.
Tucker Carlson: “You probably never imagined that the end of American Empire would come in a little over a 100-day conflict with a little rogue state on the Persian Gulf that has the 34th largest economy in the world, a country called Iran. You just couldn’t imagine that would happen.”
By March 4th the war was going so badly for the US and Israel that Will Schryver predicted: “No matter what happens going forward, or how the narrative is spun, ***Iran has achieved decisive strategic victory, ***and history will identify this conflict as a catalyst for accelerated decline of the American empire.”
Others say that Iran has simply “survived” not “won” and that the US will now begin to prepare for the next confrontation. Iran will have to race to match the US preparation while the pseudo continues and stays just under the threshold of total war. Meanwhile, the US will have to contend with Israeli warmongering while holding a ready excuse to restart the war i.e. that Iran is not abiding by the agreement.
To Iran’s credit, while other countries have merely survived confrontation with the US, Iran demonstrated that she can compete with the US and force a climbdown–this is a first.
Trump’s Concessions and Statements
Nuclear enrichment: “It’s a little hard when other people have it, other adjoining states have it, and you’re not letting them have it for purposes of electricity and things like that,” Trump said. “You have to use a little common sense.”
Nuclear program: Iran gets to keep its nuclear program for civilian purposes
Iran’s ballistic missile program: “Missiles aren’t the problem,” Trump told reporters. “They hurt a little location, but they don’t blow up the planet.”
Iran’s frozen assets: The country has billions of dollars in overseas accounts that the US has blocked banks from releasing. Part of the justification for years is the claim that Iran, because Iran opposed Israeli atrocities, is a leading state sponsor of terrorism by funding proxy groups such as Hezbollah in Lebanon and Hamas in Gaza. Here’s Trump’s response: “It’s not our money, it’s their money — and we froze it at a certain point in time,” Trump said. “I guess we’re going to have to give it back, you know. If we didn’t give it back, nobody would ever invest in the dollar again.”
From Naked Capitalism: “As BBC’s Siavash Ardalan writes, Trump’s responses to the reporters’ questions to justify the agreement with Iran were bizarre and unprecedented in their own way: They asked him how he could allow $300 billion in investment in Iran. He said, “We’ve already inflicted $2 trillion in damage on Iran; $300 billion is nothing in comparison.”
“They asked why he’s giving Iran tens of billions of dollars. He said, “If we don’t return their own money to them, other countries will be afraid to put their money in our banks, and then the dollar’s position will weaken.”
“They asked why the missile issue isn’t in the agreement. He said, “We’ve already destroyed 85% of their missiles anyway; the rest are buried underground, and besides, we sell air defense systems to the countries in the region, so they won’t worry about Iran’s missiles.”
“They asked if he’s not worried that Iran will say, “We’re only producing nuclear energy for civilian purposes.” He said, “You can’t tell everyone else to produce electricity with nuclear power while only Iran can’t.”
“Finally, he said, “If we continue sanctioning Iran, 91 million Iranians will die of hunger—what’s the point of that, really?”
Oh, and he joked that “If [the Iran deal] works out, I’m going to take the credit; if it doesn’t work out, I’m blaming [Vance].”
Israeli Defiance and Regrets
Bottom line: The US and the world economy turned out to be more important than overthrowing the Iranian government, placating Israel, or helping Israel achieve her dream of Greater Israel and world domination.
Israel was reportedly blindsided by the new ceasefire and instead believed that the war would resume. White House leaks of disagreements between Trump and Netanyahu have also accelerated, creating more tension.
Today in Haaretz there is an article accusing Israel of being a terrorist state committing crimes against humanity–written by former Israeli PM Ehud Olmert. Moreover, the global social, political, and economic barriers that prevented people from freely discussing Israeli savagery and the fact that Israel is and has been a terrorist state have fallen. All over social media you can find discussions of historical and current events. This was not happening before October 7, 2023, the Gaza genocide, the war on Iran, and the brutal invasion of Lebanon. The world has been shown that Israel’s military shoots babies in the head and children in the genitals–among many other atrocities–when will this brutality end?
Tamir Hayman, former head of the Israeli military intelligence agency (Aman); “This agreement gives Iran the ability to dominate the Middle East. If we had known that things would end this way, it would have been better not to start this war at all.”
From Dr Andreas King: “Sealed inside their own echo chamber, Israelis convinced themselves of a myth of military hegemony, total impunity, a small state that could play global superpower. This has been the narrative of defiance within Israeli discourse since 7 October. The bubble is slowly bursting. Hamas is still standing. Hezbollah fought the IDF to a stalemate. Iran extracted major US concessions without firing a shot. And Israel is more isolated than at any point in its history. The “regional great power” was always just borrowed American muscle. They were just the last to notice.”
Although Israel’s GDP is the size of New Jersey, only the passage of time will determine whether this peace initiative will succeed. The Israeli/Zionist lobby in the US and the entire western world is very rich and very powerful. Their power should not be underestimated.
How Quickly Can Traffic in Hormuz Be Restored
It’s not like flipping a switch. It was reported that 3 of the largest oil companies in the world could not arrange tankers–Petro China, Sinochem, and Indian Oil. Why? In PetroChina’s own words: “There are tankers available, but the problem is it’s too expensive and there is no guarantee you can exit the strait.” Also, Freight rates 3 times the pre-war level, and there are insurance clauses that require special Hormuz guarantees because there is no assurance a loaded 2-million-barrel ship can safely exit the Strait.
There are other problems that will need to be addressed. These tankers have been sitting in the gulf full of crude for four months. This means the oil may not be in good condition. Here’s Larry Johnson: “The heat produces thermal degradation, sedimentation, and in some grades, partial polymerization of heavier fractions. More practically, the cargo specifications that a refinery contracted for may no longer be met after months of heat exposure and water separation issues in the tanks. Before those cargoes can be delivered, they will need to be tested, and some will need blending or reprocessing before any refinery will accept them.”
“The ships themselves have been idle for four months. Engines need to be brought back online carefully. Hull fouling — the accumulation of marine growth on the hull during idle periods — significantly reduces speed and fuel efficiency, meaning transit times will be longer than normal. Some vessels will require port inspections before they can legally sail under their flag state rules. Port- scheduling, berth availability, and refinery run rates all have to be coordinated.”
Then there’s all the damage to oil and gas production throughout the gulf. Many well have been closed in and will take time to restart. The gas facilities of Qatar have been heavily damaged and will take time and money to repair.
Some estimate it could take months, if not years to even come close to what the gulf was producing before the war. Any additional interruption of traffic through the Strait of Hormuz would rattle shippers and extend the timetable for delivery of oil and normalization. This means that Iran retains considerable economic leverage.
The Efforts to Lock in Intelligence Sharing with Israel
These efforts include–Section 622 – a provision buried in the Senate’s intelligence authorization bill that would lock in expanded intelligence sharing with Israel and make it nearly impossible to scale back.
Under the amendment, intelligence sharing with Israel can’t be suspended or reduced unless the president personally determines there’s a “specific and identifiable national security concern.”
There is also a bill in the House. The Bills are H.R. 7540. The house bill has a similar section. Section 224 is now section 219. The Senate Bill is 3855 Section 622. Call Congress 202 224-3121
The Risk that the US Israeli War on Iran Would Fail Was So Well Known It was Repeatedly Discussed by this Substack!
In an essay dated February 24th this Substack asked: Could the US Face A Reckoning? The essay expressed concern about what would happen if the war in Ukraine or a war on Iran went badly.
An essay on this Substack dated February 24th noted that 80% of Americans opposed an attack on Iran. The essay also stated: “it does not appear that the US military is in optimum shape to confront Iran. I also doubt the US has a definitive handle on Iran’s current capabilities.”
On February 28th, the US followed Israel to war on Iran by conducting an illegal, surprise, unprovoked attack, even though ongoing negotiations were making substantial progress towards reaching an agreement on Iran’s nuclear program. In an essay dated the same day this Substack noted that Iran declared “No Red Lines” and attacked US bases in 6 countries along with Israel, simultaneously, within 90 minutes of the first US/Israel strike. The bases and facilities attacked were in Qatar, Kuwait, the UAE, Bahrain, Jordan, and Iraq, marking one of the most significant escalations in regional conflict in decades. The attack destroyed the AN/FPS-132 radar in Qatar, “America’s Giant Eye”. Over the course of the war, Iran would destroy US bases, radars and similar facilities, blinding the US and demonstrating conclusively that the 800 US bases the US has built around the world, at great cost, cannot be defended.
In an essay dated March 7th this Substack asked: “Has the Reckoning Begun? The essay noted important facts about Iran, namely: that Iran has a population of over 90 million highly educated people including a lot of engineers; that Iran was a large country, four times bigger than Iraq, and as large as the entire western US; that Iran was mountainous creating a natural fortress; that Iran was strategically located overseeing the Strait of Hormuz which at its narrowest point was only 21 miles wide–already oil tankers were no longer exiting the Strait; that Iran had adopted a “Mosaic Defense” dispersed throughout the country with the authority to operate independently in the event of an attempted decapitation; and finally, that Iran had built and developed an enormous underground military infrastructure–“entire missile cities, air bases, command posts, and logistics tunnels — built deep underground”. The essay also noted: “How many there are and where they are located is still unknown. These facilities could become an impenetrable shield that ensures the preservation of combat potential even during intense strikes.” The essay concluded with a discussion of the severity of Iranian strikes on US assets in the region, while noting that the damage “to Saudi Arabia, Kuwait, Bahrain, Jordon and the United Arab Emirates was severe.”
As a result of these advantages, the militaries of both the US and Israel could not force their will on Iran.
This Substack discussed, early and often, the risk to the global economy from the energy and other shortages resulting from the war and the closing of the Strait of Hormuz.
How Iran Sees It
Dr. Ghalbaf: “We negotiate from Victory! The enemy chased the ceasefire. Iran said no at first then dictated the terms. This is nothing like JCPOA. Today the talks rest on battlefield victory both enemies and friends have acknowledged with Iran’s armed forces having beaten a fully equipped enemy. Negotiation as a method of struggle. No weaknesses, no hollow slogans, while the talks went on.”
Conclusion
Iran’s response to being attacked by the US and Israel was very deliberate and highly strategic. Iran was forced to conduct the war in a way that avoided the threat that the US or Israel would use nuclear weapons. In the face of sneak attacks that murdered their Ayatollah and many of their leaders, Iran refused to respond in kind. Instead of attacking civilians and civilian infrastructure, Iran attacked radars, listening posts, and military bases and facilities. When Israel and the US attacked schools, Iran did not. Iran’s attacks, on energy resources were in response to attacks on Iran’s energy resources by the US or Israel.
Throughout the war, Iran conducted itself with dignity and integrity–they have shown themselves to be educated, honest, and honorable people. They have earned my respect, and hopefully, the respect of the world.