1) Michael Hudson : Grounding the narrative for US foreign policy

Note: This is the first analytical essay on narrative that readers must read today, and it will be followed by two more.  

Michael Hudson

I am trying to ground the narrative for U.S. foreign policy in the following terms, and wanted to post my basic theme here.

The joint U.S.-Israeli attack on Iran is engulfing the entire world in its consequences, because the whole reason why the United States seeks control of Iran is to control its oil, and that affects the whole world’s economy. That is what makes this week the opening of what cannot avoid becoming World War III.

I mean that in the sense that this war is splitting the US/NATO West from the Global Majority, by creating strains that Japan, Korean and even Europe can no longer afford. A change in consciousness is occurring – and that is the context for how countries will act (or be forced to act by their populations).

The effect of this U.S. attack has destroyed the narrative that has enabled U.S. diplomats to demand subsidy and tribute for its global military spending and demands for U.S. subsidy and special tribute to finance it. The predicate fiction is that the world needs U.S. military support to protect it against Russia and China – and now Iran, as if these countries pose a real threat to Europe and Asia.

The pretense of U.S. foreign policy is that the United States is protecting the rest of the world by waging the present Cold War. But the consequences of its attack on Iran show that the United States actually is the greatest threat to the security of its allies.

 THE GREAT ENABLING FICTION IS GONE. America is not protecting the world from attack by Russia, China and Iran. Its long-term aim of controlling the world oil trade requires ongoing terrorism and permanent war in the Middle East.

The immediate result of the U.S. attack on Iran has been for that country to defend itself by trying to immobilize the U.S. military bases in Kuwait, Bahrain, Dubai, Saudi Arabia and the United Arab Republics. The gas refineries to produce LNG in Bahrain and the UAE, have been destroyed, and will take at least two weeks to rebuild, and then another few weeks to put back online.

Closing the Strait of Hormuz has not only blocked oil exports; it has blocked grain and food imports, on which the OPEC countries were highly dependent (as is Iran, for that matter). So the United States has not been able to protect the OPEC countries, and its attack has hurt Japan, South Korea and Europe. For Europe, Japan and South Korea the result has been that gas prices soared by 20% in the first day after the destruction, and are on their way upward today. Korea’s stock market has plunged 18% in the last two days.

I just found this citation on today’s (March 5) MoA

Prominent UAE billionaire Khalaf Ahmad Al Habtoor just published an open letter to Trump. It’s brutal.”Who gave you the authority to drag our region into a war with Iran? Who gave you permission to turn our region into a battlefield?” Al Habtoor’s a major figure: billionaire, former diplomat, outspoken political voice in the Gulf. When he talks, UAE leadership’s listening. His questions:

* Was this your decision or Netanyahu’s pressure?

* Did you calculate collateral damage before firing?

* You placed GCC countries at the heart of danger they didn’t choose

* Your “Board of Peace” initiatives were funded by Gulf states. Now we’re getting attacked. Where did that money go?

* You promised no wars. You’ve conducted operations in 7 countries: Somalia, Iraq, Yemen, Nigeria, Syria, Iran, Venezuela

658 airstrikes in your first year back = Biden’s entire term (which you criticized) War costs $40-65 billion for operations, possibly $210 billion total

* Your approval rating’s down 9% in 400 days

* Americans were promised peace. They’re getting war funded by their taxes

The sharpest line: “Before the ink has dried on your Board of Peace initiative, we find ourselves facing military escalation that endangers the entire region. So where did those initiatives go?”

Al Habtoor’s not some random critic. He’s establishment. Connected. When UAE elites start publicly questioning Trump’s decision-making, that’s America’s closest Arab allies saying: “we didn’t sign up for this.” The letter ends: “True leadership is not measured by war decisions, but by wisdom, respect for others, and pushing toward achieving peace.”

Note: without detracting from Michael Hudson’s perfect narrative grounding, here is an example of others that see the same trajectory:

‼️ This is what irreversible strategic defeat looks like.

“Gulf Arabs have now realized that the ‘Mob’ took their ‘protection money’ but never intended to protect them. Breach of contract. Even the Genovese crime family that ran my NYC neighborhood met their obligations.”

— Will Schryver (@imetatronink) March 5, 2026

Here is the second in our series on narrative grounding today:  https://sovereignista.com/2026/03/06/2-brian-berletic-on-todays-theme-correcting-the-narrative/