Daniel Davis / Deep Dive
Daniel Davis / Deep DiveJan 1
Geopolitics

Iran, China & Russia v. Trump /Glenn Diesen & Lt Col Daniel Davis

58 min video5 key momentsWatch original
TL;DR

Trump claims the Iran war is nearly over and promises to open the Strait of Hormuz, but Glenn Diesen argues military victory is impossible and the blockade is actually targeting China's oil supplies.

Key Insights

1

Match escalation ladderIran has demonstrated it will match the US escalation ladder rung-for-rung—closing the Strait of Hormuz, hitting military bases, targeting Gulf state infrastructure—because backing down signals weakness in an existential conflict.

2

Kinetics can't winAn Israeli intelligence researcher publicly acknowledged kinetic warfare cannot topple Iran or stop its nuclear program; only negotiated agreements work, yet the US is pursuing maximum pressure instead.

3

Economic war on ChinaThe US blockade on Iran cuts off 85-90% of Iran's oil exports to China, making this less about stopping Iran's nuclear program and more about economic warfare against a strategic rival.

4

Contradictory messagingTrump's messaging—opening the Strait for China, claiming Xi will hug him—contradicts the Wall Street Journal's reporting that China is bracing for retaliation and won't compromise its interests.

5

Isolation benefits ChinaEvery US attempt to isolate rivals (Russia, Iran, Central Asia) has inadvertently strengthened China by forcing those nations into closer economic and military dependence on Beijing.

6

Global food crisisFertilizer and fuel shortages from the Strait closure are already driving global food price spikes and agriculture decisions from Australia to Africa, guaranteeing economic pain even if hostilities end tomorrow.

Deep Dive

Trump's Nuclear Gamble and the Escalation Trap

Trump told Fox Business this morning the Iran war is almost over, claiming he could destroy Iran's bridges and power plants in an hour and simply walk away. Diesen sees this as Trump seeking an off-ramp after realizing military conquest won't work, but the premise is flawed. If Trump executes massive infrastructure strikes targeting civilian lifelines, Iran won't capitulate—it will escalate. Iran has been explicit: match whatever the US does, from targeting Gulf ports to disrupting energy grids. Diesen notes Iran has climbed the escalation ladder predictably for six weeks and has the capability to keep climbing. The Iranian leadership, having survived the Iran-Iraq War and lived through centuries of foreign pressure, won't break under bombardment. What looks to Trump like a path to victory—maximum destruction then exit—is actually a path to infinite war.

The Real Target: Choking Off China's Oil

Trump tweets that China will hug him for reopening the Strait of Hormuz, but the Wall Street Journal reported an hour before that tweet that China is preparing retaliatory measures and won't be pushed around. The disconnect reveals the actual strategy: the blockade isn't primarily about Iran's nuclear program—it's about cutting China off from 85-90% of Iran's oil supplies. This is economic warfare wrapped in nuclear rhetoric. Diesen points out that destroying Iranian rail corridors and Caspian Sea ports targets the Russian-Iranian-Indian transportation corridor, explicitly harming China's supply chains. Senator Tim Scott even said outright he'd be happy if China's economy collapsed due to the oil blockade. The US is pursuing unipolar containment strategies in a multipolar world, and every attempt to isolate rivals—from sanctioning Russian gas to starving Iran of partners—forces those countries closer to China instead.

Diplomatic Theater While Walls Close In

The US claims to extend diplomacy while maintaining a blockade, stationing military hardware in the region, and moving troops in rather than out. Diesen calls this nonsense given the pattern: two negotiation rounds in 2025 ended in surprise US-Israeli attacks. The Islamabad talks showed the US demanding Iranian capitulation on nuclear enrichment and military capabilities—precisely the existential concessions Iran cannot make without inviting regime change. Trump's maximum pressure followed by talks is a familiar playbook, but it fails when the opponent rationally calculates that surrender means destruction anyway. Iran has proven willing to negotiate multiple times, accepting the JCPOA, participating in ceasefires in good faith, but trust is gone. The Iranian public and government have consolidated around resistance after seeing US brutality against civilians and hearing threats to wipe out their civilization. Negotiation requires both sides believing the other will honor agreements. That foundation no longer exists.

Global Blowback: Food Crisis and Recession Already Locked In

The Strait closure has sent fertilizer and fuel prices soaring worldwide. US farmers facing spring planting season can't afford inputs; Australian farmers reshaping crop decisions; African nations grappling with energy crises. Even if Trump opens the Strait tomorrow, the damage is baked in—food shortages this harvest will spike prices globally, hitting poorest populations hardest. A retired British commodore calculated that even if the strait reopened immediately, the economic fundamentals already guarantee a global recession from the supply shocks and cost inflation. Diesen warns of cascading instability: food crises trigger social unrest in countries already living paycheck to paycheck. This isn't a side effect to fix later—it's a second and third-order consequence already in motion. The longer the blockade persists, the worse the structural damage. Allies and partners are pressuring Trump to resolve this fast, but military buildup and extended ceasefires suggest the administration may be using the ceasefire as cover to position forces for another assault.

China's Long Game: Benefiting From US Overreach

Diesen observes that China seems to benefit from every US mistake without asking for it. When Europe banned Russian airspace, Chinese airlines eliminated their competition. When Europe cut Russian oil, 30-year contracts at discounts flowed to China instead. Now the Iran blockade cuts off Iran's previous buyers but forces Iran into deeper dependence on China for trade, military support, and alliance. The US strategy of isolating rivals in a multipolar world paradoxically consolidates those rivals around China as the stable partner. Diesen points to the 2012 Hillary Clinton statement about preventing the Eurasian Economic Union—that effort failed, and Central Asia became more dependent on Chinese economic influence instead. At the video's end, Davis notes that even from China's perspective, a long drawn-out conflict drains US military stocks and industrial capacity while China's inventories remain robust. Whether the blockade lasts weeks or years, China gains—either through Iranian dependence or through watching US resources hemorrhage.

Takeaways

  • Don't trust Trump's diplomatic claims while maintaining active blockades and moving military hardware into the region—Iran's precedent shows they back up threats with action.
  • Monitor global fertilizer and fuel prices closely; the Strait closure is already baking in recession and food shortage costs regardless of when it reopens.
  • Recognize the blockade targets China as much as Iran; expecting Xi to cooperate after being cut off from 85-90% of Iran's oil is strategically incoherent.

Key moments

1:31Trump claims Iran war almost over

I think it's close to over. If I pulled up stakes right now, it would take them 20 years to rebuild their country.

8:29Iran's deterrent strategy is credible

Whatever they do to Iran, Iran will follow them up that escalation ladder and do the same. The Americans know that if they start to destroy the bridges, I think Iran's going to go after the key infrastructure of the Gulf states.

20:52Israeli intelligence admits kinetics won't win

I don't think kinetics can topple this regime. I don't think kinetics can prevent them from building a nuclear bomb. We have to embedded the political route.

40:43Blockade is economic war on China

85 or 90% of the Iranian oil is sold to China. This is meant to be a hit towards the Chinese. I consider this probably to be then that the Chinese are key target of this.

56:09US pursuing unipolar strategy in multipolar world

At every turn one disrupts what would be a natural equilibrium, it seems to benefit China. The world is multipolar, but the US is still pursuing this unipolar strategies.

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