Behind the News: The US-Israeli War on Iran w/ Laleh Khalili and Mouin Rabbani

The United States and Israel's war on Iran has not only failed to achieve its objectives but has exposed the deep strategic vulnerabilities of American imperialism, according to Laleh Khalili and Mouin Rabbani in a scathing analysis on Jacobin Radio. Far from being a 'paper tiger,' Iran has demonstrated remarkable resilience, using its control of the Strait of Hormuz not just as a military lever but as an economic weapon—forcing up insurance premiums and disrupting global trade in oil, fertilizers, and semiconductors. The war has backfired spectacularly: U.S. military losses are staggering, the dollar’s global dominance is eroding, and China is emerging as the unexpected beneficiary, with Iran reportedly planning to charge shipping fees in renminbi. Khalili argues that the U.S. and Israel’s strategy of installing a puppet regime in Iran—akin to Iraq redux—has failed due to Iran’s larger size, stronger institutions, and national unity in the face of foreign aggression. Rabbani adds that Israel’s brutal tactics, including systematic rape and the destruction of Lebanon, have alienated even its traditional allies, while the U.S. is now trapped in a strategic dilemma: either negotiate a humiliating ceasefire or risk total escalation with no clear path to victory. The episode concludes with a grim but clear verdict: the U.S. empire is in irreversible decline, and the only way forward is for Washington to finally rein in Israel’s regional ambitions.