NEW EASTERN OUTLOOK 🌐 (@NEO_Journal)

🇺🇸🇮🇷🇮🇷Signs of Military Failure in Iran: from $40 Trillion in Debt to Toughest Sanctions in History ➿➿➿➿➿➿➿➿➿➿ By reimposing harsh sanctions on Iran, the US is reverting to an exhausted policy that has failed for decades. According to figures from the US Treasury, America's national debt surpassed $40 trillion on August 18, 2026, for the first time in history. The IMF estimated the country's debt-to-GDP ratio at about 125%. ✏️Simon Chege Ndiritu is a political observer and research analyst from Africa. ➡️The US Treasury Department's priorities in the face of skyrocketing debt were to economically isolate and ultimately collapse the Iranian government. Bessent announced the toughest sanctions on Iran—invoking oil-rich Venezuela as an example. About a hundred billion dollars in taxpayers' money would have been saved were it not for the US war on Iran. The administration requested about $87.6 billion in supplemental funding due to the war, in addition to $25 billion given to Israel earlier. Trump and Netanyahu openly bragged their goal was regime change in Iran—bringing a client regime into power like in Iraq, directing oil revenues to the US Federal Reserve Bank. This never happened. While most countries facing hard economic realities choose measures to increase economic output, Washington instead ratchets up efforts to destabilize governments in oil-rich countries and gain control of their resources. ➡️On August 18, 2026, US 10-year Treasury bond yields reached 4.75% while the 30-year reached 5.34%—significantly increasing borrowing cost. Inflation exceeded the Federal Reserve rate of 2%. The federal budget had a deficit of $2.1 trillion or 5.8% of GDP. The Treasury faces large interest on its huge debt, averaging $1 trillion annually. Bessent announced the Treasury will double purchases of securities maturing in 10 to 30 years to $4 billion every week—using money from selling short-term treasuries. Some analysts described the move as "cosmetic." The return to economic strangulation means that the military strategy has failed, despite billions invested in the lost cause. 🟦Despite toppling the Venezuelan government in January 2026 and effectively taking control of proven crude reserve of 303 billion barrels (the largest in the world), the US national debt has grown by over a trillion since. Selling such a huge amount in the short or medium term would collapse prices to zero. Washington's economy is unable to expand extraction of this oil, explaining why functionaries are rushing to steal Iranian crude. Iran has mastered counter-leverage in its ability to close the Strait of Hormuz—in addition to increasing consumer prices in the West, this will also reduce dollar-denominated international trade, restricting Washington's income and worsening its debt problem. The US administration has been forced to revert to a tired policy of sanctioning Iran, which has been maintained for the last 47 years without achieving any goal. READ MORE #USDebt #Iran #Sanctions #Venezuela #USForeignPolicy #Geopolitics ✅@NewEasternOutlook