
The Foreign Affairs Interview How the Iran War Is Shaping a Post-American World
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Apr 16, 2026 Kishore Mahbubani, veteran Singaporean diplomat and former UN ambassador, offers Asia-focused geopolitical perspective. Matias Spektor, São Paulo-based professor of politics, analyzes Latin America and the Global South. They discuss the Iran war’s global economic shock, rising Chinese influence, hedging by states, weakening U.S. authority, and how regions are rewiring trade and institutions.
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Latin America Feels Iran War Economically Not Militarily
- The Iran war's effects on Latin America are mainly economic, transmitted through higher energy prices, inflation, and financial volatility.
- Matias Spektor notes oil exporters like Brazil gain short-term fiscal benefits while energy importers face subsidy-versus-political-backlash trade-offs.
China's Deepening Grip in Latin America Limits U.S. Influence
- China has become Latin America's primary economic partner via trade, FDI, and infrastructure, reducing U.S. leverage despite occasional U.S. interventions.
- Spektor cites Chinese investment in ports, energy, 5G, and vaccine diplomacy as reasons countries diversify away from sole U.S. dependence.
Multipolarity Gives Smaller States More Room To Hedge
- In a multipolar era, middle and small powers gain leeway to hedge and seek strategic autonomy rather than choose binary alignments.
- Spektor argues many states will craft independent foreign policies to preserve options amid uncertain great-power trajectories.


