Why This War Is Worse Economically

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In this explosive edition of Parallax Views, host J.G. Michael is joined by former CIA analyst and counterterrorism official Larry C. Johnson of the Sonar21 blog to discuss the rapidly escalating U.S.–Iran war and why Johnson believes the Trump administration’s public messaging about peace negotiations is deeply misleading.

Drawing on his recent article “Is Trump Serious About Negotiations with Iran?”, Johnson argues that claims of imminent diplomacy with Tehran should be treated with extreme skepticism. In fact, he bluntly warns listeners: “Don’t believe ’em — they’re lying.” According to Johnson, statements about ceasefires or talks may be intended to calm markets and suppress oil prices rather than signal genuine negotiations. He predicts that after markets close on Friday, the conflict could escalate dramatically.

The conversation dives deep into the strategic and economic stakes of the war, including the potential for catastrophic disruption to global energy infrastructure and the risk of shutting down the Strait of Hormuz. Johnson explains why proposals to seize strategic islands in the Persian Gulf could expose U.S. forces to devastating missile, drone, and naval attacks — and why such moves might trigger a wider economic shock affecting oil, LNG, fertilizer, and even global metals supply chains.

J.G. and Johnson also examine how this conflict compares to earlier U.S. wars in the Middle East. Johnson argues that the current war is even more dangerous than the Bush-era invasion of Iraq, noting that this time there has been little effort to manufacture public consent on this war of choice.

Other topics explored in this wide-ranging conversation include:

• The geopolitical consequences of closing the Strait of Hormuz and what it means for the global oil market
• A bit on Kharg Island, a significant Iranian oil export hub
• The potential economic ripple effects of war on commodities like copper, uranium, and nickel
• The role of Benjamin Netanyahu and the Israel lobby in shaping U.S. policy toward Iran
• The resignation of Joe Kent and what it signals about internal divisions within the Trump administration
• The historical roots of U.S.–Iran hostility, including Washington’s support for Saddam Hussein during the Iran–Iraq War
• Why Johnson believes American troops could soon face significant casualties if escalation continues and troops on the ground are deployed.

Johnson, who served as an analyst at the CIA and later as Deputy Director in the U.S. State Department’s Office of Counterterrorism, brings decades of intelligence and national security experience to his analysis of the unfolding crisis.

If Johnson’s predictions are correct, the coming days could reshape not only Middle East geopolitics but also the global economy and energy system.