Causes & Consequences of the Iran War

In this episode of Economic Update, Richard D. Wolff engages in a deep and urgent conversation with Pulitzer Prize-winning journalist Chris Hedges about the escalating conflict between the United States, Israel, and Iran. Hedges traces the roots of U.S. hostility toward Iran back to the 1953 CIA-backed coup that overthrew Prime Minister Mossadegh, who sought to nationalize Iran’s oil resources. He details decades of U.S. intervention, including support for the Shah’s repressive regime, the creation of SAVAK, and backing Iraq during its eight-year war with Iran—during which chemical weapons were used. Hedges emphasizes that the current crisis is not about Iran’s nuclear program, which has no evidence of weaponization, but rather about Iran’s resistance to U.S. and Israeli hegemony in the Middle East. He critiques the Trump administration’s aggressive actions, including the seizure of Iranian ships and attacks on Iranian assets, which triggered Iran’s closure of the Strait of Hormuz—a critical global oil chokepoint. This move has already caused severe economic disruptions, forcing countries like Japan and India to tap strategic reserves. Hedges warns that the U.S. has failed to grasp the consequences of its actions, with Iran now holding strategic leverage through asymmetric warfare, drone strikes, and coordination with Russia and China. He argues that the U.S. is in a catastrophic strategic defeat, not just militarily but economically and diplomatically, and that the empire’s collapse may be driven by the very same hubris and ignorance that doomed past empires. The episode ends with a dire warning: unless the U.S. accepts Iran’s conditions—sanctions relief, reparations, and a no-aggression pledge—the global economy could spiral into a depression.