The current conflict between Iran and Israel/the US can only be fully understood by approaching events through a religious lens.

Tucker Carlson has many interesting things to say about this, and Professor Jiang Xueqin also shares interesting insights on his popular YouTube channel.

Anyone who wants to understand geopolitics should take the time to watch these videos carefully.

In this message, we will not focus on the religious considerations, but will limit ourselves to the financial.

For example, since the start of the conflict, Iran has attacked several countries in the Persian Gulf, all members of the Gulf Cooperation Council (GCC).

The GCC is a political and economic alliance between Saudi Arabia, the United Arab Emirates, Qatar, Oman, Kuwait, and Bahrain.

These countries hold a large portion of the world's oil and gas reserves and are monarchies.

But perhaps even more importantly, these countries form the foundation of the petrodollar.

They sell their fossil fuels in dollars, peg their currencies to the US dollar, and manage $4 to $5 trillion in assets through sovereign wealth funds (SWFs).

It's telling that Iran is targeting these very countries.

American dominance is largely based on the petrodollar, and Iran now wants to increase pressure on the GCC countries to distance themselves from the US.

The implicit deal is that the GCC countries sell their oil in dollars and, in return, receive protection from the US.

But in recent days, it has become clear that this protection doesn't amount to much in practice.

And there are two additional problems.

First and foremost, 70% of the GCC countries' food is imported through the Strait of Hormuz, and no ships are currently sailing through it.

According to logistics provider Kuehne+Nagel, Dubai only has 10 days' worth of food supplies left.

Secondly, the GCC countries lack natural water sources, making them dependent on desalination plants for their fresh water. If Iran attacks these plants with drones, millions of people in these countries will be left without sufficient fresh water.

Iran therefore has considerable leverage, and it will not hesitate to exploit it.

In essence, the GCC countries now face a choice: either continue with the petrodollar and the dubious protection of the US, or blow up this cooperation.

The GCC countries are generally led in a rather authoritarian manner by a monarch, and this creates a huge divide. The elite is in league with the US, but their own populations are more critical and suspicious of this.

If this cooperation then leads to economic headwinds and food and water shortages, it could culminate in uprisings that ultimately overthrow the monarchy.

There is therefore a lot at stake for these countries, and it is clear that the petrodollar is now seriously faltering.

It's probably no coincidence that gold and silver prices have been pushed down significantly since the start of the war.

I do say "pushed" because I see the US's hand in it.

Gold and silver are pretty much the opposite of the petrodollar, and it's important to create the perception that the dollar is quite strong.

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