Iran is leveraging its oil resources to escalate economic pressures amid ongoing military conflicts with the U.S. and allies, particularly around the strategically vital Strait of Hormuz. By fostering a perception of risk in the Gulf, Iran aims to drive up oil prices, which can lead to domestic political turmoil in the U.S. While Washington anticipates internal unrest in Iran, the conflict has instead united many Iranians in the face of external threats. As diplomatic efforts falter due to unclear U.S. objectives, the potential for a long-term shift in Iran’s deterrence strategy grows.
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