U.S. War with Iran Exposes Limits of Global Power
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- United States continues its war with Iran for months, exposing limits of its military power.
- Christopher Caldwell argues that the US is experiencing a decline similar to Britain’s 1940s empire, citing historical parallels.
- International Monetary Fund calculates that in 2026 the US accounts for 15% of global PPP output, down from 50% in 1945, while China reaches 20% and the EU 14%.
- Donald Trump’s policy of missile strikes on Iran has reduced US capacity to defend Taiwan and forced missile stock withdrawals from South Korea.
- NATO's cohesion was challenged when Donald Trump pressured Denmark to relinquish Greenland, prompting European autonomy in trade and defense.
- China's Belt and Road Initiative, backed by $4 trillion in reserves, has built extensive infrastructure across Eurasia, surpassing US influence after the 2021 Afghanistan withdrawal.
- Afghanistan war cost the United States an estimated $5.8 trillion, while China's foreign reserves grew from $200 bn in 2001 to $4 trillion by 2014.
Why it matters: American policymakers and allies lose strategic leverage as the US struggles to project power, while rivals like China gain economic and geopolitical influence across Eurasia, reshaping trade routes and security alignments. The war’s cost, estimated at $5.8 trillion, also strains US fiscal resources, further limiting its ability to sustain overseas commitments.
