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Krugman's Verdict: Iran Holds, America Folds

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Krugman's Verdict: Iran Holds, America Folds
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Krugman's Verdict: Iran Holds, America Folds

2026-05-02 22:46 Last Updated At:22:46

In the classic wuxia novel The Heaven Sword and Dragon Saber, the Golden-Haired Lion King's signature move is the "Seven Injury Fist" – devastating in power, yet self-wounding by design: for every seven points of damage dealt to the enemy, the user suffers three.

Trump unleashes the "Seven Injury Fist" against Iran, blockading its ports. Iran strikes back decisively, tightening its grip on the Strait of Hormuz. The result: America harms itself, and the global economy bleeds from within.

Trump unleashes the "Seven Injury Fist" against Iran, blockading its ports. Iran strikes back decisively, tightening its grip on the Strait of Hormuz. The result: America harms itself, and the global economy bleeds from within.

Trump is now trapped in a three-way deadlock with no good options left. He is unleashing this very fist against Iran – wielding economic strangulation through blockade. But the consequences may well invert the ratio entirely, injuring himself seven points for every three inflicted on Tehran, while the global economy hemorrhages from within. This is a textbook case of mutually assured destruction.

Blinded by arrogance, Trump presses on to save face. Nobel Prize-winning economist Krugman has already named the likely outcome: Iran will emerge stronger than before the war, and America will be left weaker.

By 1 May, the US-Iran war will have lasted 60 days. Trump boasted at the outset that the conflict would be over in two to three weeks. Instead, he has sunk into a quagmire of "no fighting, no talking, no withdrawing." His cards are few, yet he cannot admit defeat.

His only move is the "blockade play" – squeezing Iran's economic lifeline in hopes of forcing submission. The Wall Street Journal reports that at recent meetings – including a Monday session in the White House Situation Room to assess the war's progress – Trump settled on one course of action from several options: maintaining the interdiction of oil tankers and cargo vessels entering and leaving Iranian ports, striking at the country's jugular. He believes Iran's economy is on the verge of collapse, and that this move can force its "surrender" at lower risk than either resuming bombing or withdrawing entirely.

Trump genuinely believes this gambit will work. A White House spokesperson, responding to the Wall Street Journal, stated: "Thanks to the successful blockade of Iranian ports, the United States has maximum leverage over the regime." The strategic logic is clear: sustain the blockade long enough, and Iran will crack under pressure and be compelled to accept all of Washington's demands.

Comparatively speaking, this is indeed Trump's best choice within an impossible trilemma. A unilateral withdrawal now would be tantamount to surrender – he would have no face left to show his own people, and the Republican Party would suffer even heavier losses in the midterm elections. Resuming military operations, on the other hand, would invite Iranian retaliation, dragging the conflict into an endless spiral. The blockade carries fewer immediate downsides.

The real question is whether Iran will buckle under the pressure – or hit back hard. Judging by the tone of Iranian officials in recent days, the latter seems far more likely.

Iran's fundamental position is non-negotiable: control over the Strait of Hormuz must be maintained at all costs. The Strait is Tehran's trump card against the United States – the decisive factor in this war. Supreme Leader Mojtaba has already issued his directive: the blockade of the Strait must continue. The harder America tightens its grip on Iranian ports, the more fiercely Iran clings to the Strait. With both sides dug in, the prospect of full navigation being restored grows ever more remote.

Trump's "Seven Injury Fist" has wounded more than just Iran – the global economy is hemorrhaging from within. Since the Strait was blockaded, roughly 20 million barrels of oil per day have been cut off from world markets. With no end to the closure in sight, oil prices have surged again in recent days. Brent crude rose 7% today to US$119.50 per barrel – its highest level since June 2022 – completely erasing the earlier declines that followed a temporary ceasefire.

Soaring oil prices are battering every sector of the economy, fueling inflation and driving up interest rates. The International Monetary Fund has already revised its global growth forecast down to 3.1%. Should oil prices remain elevated, that figure could fall further to 2.5%. The World Bank has also warned that energy prices could rise 24% this year, significantly heightening the risk of recession.

Nobel Prize-winning economist Krugman predicts that after Trump's assault, he will have no more cards left to play , and Iran will emerge stronger than before the war, while America is left weakened.

Nobel Prize-winning economist Krugman predicts that after Trump's assault, he will have no more cards left to play , and Iran will emerge stronger than before the war, while America is left weakened.

Trump's recklessness has cost the world dearly, and Nobel Prize-winning economist Krugman is growing increasingly furious. In an article titled "The Oil Crisis Deepens, the World Economy in Peril", Krugman argues that if Persian Gulf oil supplies continue to fall, sufficient "demand destruction" must occur to bring consumption in line with supply. That process, he warns, will inflict enormous economic damage. The outlook, he states, is genuinely alarming.

Krugman attributes this catastrophe squarely to Trump's overweening arrogance. "His fragile sense of self-worth depends on constantly believing that he’s a winner while others are losers," Krugman writes. "Now he’s faced with the reality that he, more or less single-handedly, led America to humiliating strategic defeat."

As for how things might unfold, Krugman poses a pointed question: "How long will it take before Trump accepts the reality that he doesn’t have the cards, that in the end his Iran venture will be resolved in a way that leaves Iran stronger and America weaker than before the war?" At this stage of the US-Iran war, many would argue that Krugman's prediction is no longer a question mark. It looks like an outcome all but certain to come true.

Lai Ting-yiu




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The US war on Iran is a broken record: strike, pause, strike again. Even Donald Trump can't find the off switch. But the real tragedy is playing out at sea. Thousands of sailors and airmen are trapped on carriers in brutal conditions. No return date. No escape. Their minds are fraying. Lives hang by a thread.

250-day deployment, no return date — sailors cracking, jumping overboard

250-day deployment, no return date — sailors cracking, jumping overboard

Now US media reports a nightmare unfolding on the USS Abraham Lincoln. Sailors, driven insane by the endless confinement, tried to jump overboard. They wanted to end it all in the churning sea. Crew members stopped them just in time. They were saved from becoming lost souls in the angry waves.

More than 200 family members learned the truth and exploded. They confronted senior Navy officials, accusing them of treating sailors like disposable parts. The firestorm is just getting started. It will rage hotter. And it will eventually burn Trump himself.

The USS Abraham Lincoln left San Diego on November 21 last year. It loitered in the Indo-Pacific, then steamed to the Middle East just before the Iran war erupted.

That was more than 250 days ago. Since then, the carrier has barely touched land. A few days in Guam. A few in Oman. The rest of the time? Endless sea. And still, no return date.

For the 5,000-plus sailors on board, the agony goes beyond not knowing when they'll see home. The ship itself is falling apart. Toilets clog. Showers grow mold. Washing machines are dead. Even drinking water and food rations have been cut. This is daily life. It is inhumane.

Add relentless combat missions to the mix. The pressure is simply crushing. Everyone feels like they're trapped in a pressure cooker. Their mental state? On the brink of collapse.

Families Confront the Navy

The families had heard about the hardships onboard. They reached their breaking point. Last weekend, more than 200 of them held a grievance meeting in San Diego, angrily confronting Acting Secretary of the Navy Hung Cao.

Hundreds of families grilled Hung Cao. Firestorm heads for Trump

Hundreds of families grilled Hung Cao. Firestorm heads for Trump

A family member named Loma spoke through tears. Her husband was one of the sailors who tried to jump overboard to commit suicide. He was rescued, pulled from duty, and is now in treatment. The ship's grievance department reached out once. Then silence. She's had only a few brief words with her husband since.

Another family member told another horror. Her husband saw a fellow sailor climb over the railing, ready to jump. He shouted, rushed forward, and dragged the man back onto the deck. He saved a life.

At the grievance meeting, the anguish was relentless. One mother, in tears, recounted a call from her daughter. The sailor's voice was hollow. She felt she would never go home. She might die on the ship.

Other families turned their fury on Hung Cao and senior Navy officials. Why was the USS Lincoln's combat mission being stretched endlessly? The ship was due back in May. Now the return date is a question mark. The Navy Department has never offered a specific timeline. That lit a fuse.

Hung Cao's answer was shameless. He said another carrier, the USS Roosevelt, would relieve the USS Lincoln. But he never gave a concrete timeline. The families, of course, refused to let it go.

The Navy's Impossible Math and a Political Firestorm

The Navy Department stood silent, absorbing the families' fury. But it had its own bitter truth to swallow. The USS Ford, the other carrier that had been operating alongside the Lincoln in the Middle East, pulled out in May after more than ten months at sea and a laundry room fire.

Now, only the Lincoln and the USS Bush remain in the region. Carriers from other areas can't be rushed in to relieve them. And with the Middle East war still boiling, the Lincoln has no choice but to keep enduring.

The US Navy faces a brutal math: ten bottles, seven lids. The endless Middle East wars keep it bogged down. So even when it knows a ship like the Lincoln is overloaded and its sailors are on the verge of collapse, it is helpless.

This endless delay is crushing the thousands of sailors on board. If the pressure keeps building, it will hit a breaking point. Then sailors may start taking their own lives, jumping into the sea one after another in protest.

Then the families' fury will erupt like wildfire. This fire will ultimately engulf Trump. He will be badly burned and left in a terrible mess.

Lai Ting-yiu

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