Severe Jet Fuel Shortages
Forbes reports that jet fuel shortages are causing severe disruptions due to the Iran war disrupting Middle East supplies, prompting airlines to cut flights and add fuel surcharges. The blockage of the Strait of Hormuz is creating immediate reliance on alternative supply chains. Key hubs are looking to diversify supply from Africa, and the U.S. Shortages are already being experienced in parts of Asia, with China and Thailand, halting exports and causing shortages in markets like Vietnam, Myanmar, and Pakistan. Major carriers including Lufthansa, Cathay Pacific, Japan Airlines, Qantas, and Air France-KLM are reducing capacity and increasing ticket prices. Europe risks running out of fuel within weeks, with shortages already impacting parts of Asia. The IAE warns that Europe risks running out of fuel within weeks, with shortages already impacting parts of Asia. The crisis is expected to last months or longer. Germany’s Lufthansa is cutting 20,000 flights, while Air Transat is reducing capacity by 6% to Europe and the Caribbean. Airlines are hiking fuel surcharges to combat rising prices (e.g., HK Express 34% increase).
Impacts on China
As I posted yesterday the US blockade is ineffective, since as many as 34 Iranian ships have passed through or around it so far. The U.S. Navy has intercepted at least four Iranian oil tankers in waters near India, Malaysia, and Sri Lanka in recent days, redirecting them as part of its naval blockade on Iran (Reuters, cited by Drop Site News).
U.S. Central Command confirmed that the supertanker Dorena is under Navy escort in the Indian Ocean, with the Department of War reporting forces seizure of the tanker Majestic X also in the Indian Ocean; shipping sources also reported the interception of the Deep Sea and the Sevin, while a fifth vessel, the Derya, may have been stopped after last being tracked off India’s west coast Friday. CENTCOM also claimed to have directed 31 vessels to turn around or return to port as part of its blockade against Iran in a post on X.
Additionally, President Donald Trump has ordered the U.S. Navy to “shoot and kill any boat” laying mines in the Strait of Hormuz, adding “there is to be no hesitation.” The Pentagon says that fully clearing Iranian mines from the Strait of Hormuz could take up to six months and would likely not begin until the war ends. This all presumes that Iran actually has mined the Strait, something I would think could be counterproductive in many ways to its attempts to establish controlled passage as opposed to seeking to stop all passage, so I have my doubts as to truth of claims that the Strait has indeed been mined.
Trump also claims that there could be fresh talks with Iran within the week, something I also find very doubtful. All the usual objections remain: negotiations with the US are dangerous to the physical safety of negotiators; the US is incapable of good faith negotiation and its negotiators are both incompetent and, in the case at least of Kushner and Witkoff, Zionist and depraved; Iran holds the strongest cards right now as the world teeters at the brink of recession or depression; Iran has the capacity to destroy its immediate neighbors and to inflict considerable damage on US assets in the region and on Israel. There are problems too with the presumed mediator, Pakistan, as I have noted before. Pakistan is not neutral. It is a close military ally of Saudi Arabia. It is also desperately impacted by fuel shortages, and desperation is not a positive thing in a mediator. Pakistan also, according to Drop Site News Analysts has deepened financial ties with figures close to President Donald Trump.
As for the Iranian ships that have evaded the blockade, one must bear in mind that this is only half of the number of ships that would normally have got through. This means that Iran is losing half of the income that it would otherwise earn, and that China, already impacted by the loss of oil from Venezuela, is now receiving only half of the amount that it would normally expect to receive from Iran. The flow of oil and gas to China from the Middle East overall has dropped significantly - Reuters assesses this as a reduction of 31%-52%, forcing China to look around the world for alternative sources, find this to be difficult. Yes, China is largely self-sufficient in energy, but this is in part due to its continuing heavy reliance on coal power, so the loss of Iranian and Venezuelan and non-Iranian Middle East sources is something highly undesirable from an environmental point of view, and also something that cannot be reversed at short notice. A resumption of violence over the Iranian and US blockades will strike further at Chinese energy imports. Brian Berletic at New Atlas (Berletic) interprets this as a successful US bid to hit at Chinese rivalry for global hegemony. The goal is simply to shut off all sources of energy to China, with the added benefit, for the US and Israel, of what it hopes will be downfall of Iran, although that bit of the plan does not seem to be working out too well.
The US contains China through a multi-layered strategy of military encirclement (island chains, bases - e.g. in Japan, Philippines, Guam), technological restrictions (e.g. strict export controls on semiconductors, artificial intelligence chips and manufacturing equipment), and economic pressure (tariffs, investment restrictions) to hinder its rapid development. Regional security alliances (Quad, AUKUS) and support for Taiwan (Taiwan Relations Act) are key, aimed at countering Chinese influence and preventing military dominance in the Indo-Pacific.
Other Impacts
For the WSWS, Jordan Shilton (Shilton) writes on the economic fallout from the US-instigated war and blockade of the Strait of Hormuz. Disruption of energy supplies are reverberating around the world and include rising fuel costs, higher electricity prices, escalating transportation expenses for billions of people, high prices for fertilizers, increased production costs for crops and reduced harvests, made worse by shipping disruptions, compounded by heightened insurance premiums and rerouted trade flows. Even traffic that is not directly impacted by the Strait of Hormuz blockade is affected. In addition to three thousand Iranian deaths, two million Iranian workers have lost their jobs.
Because over 80% of crude and LNG normally transiting the Strait of Hormuz is destined for countries in the Asia-Pacific, fuel prices have risen sharply in Ihere. In Indonesia, nickel producers have cut output by at least 10 percent due to shortages of natural gas and sulphur. Severe disruptions to the garment factories of Bangladesh have also been reported due to a lack of polyester and nylon, fossil fuel byproducts used to make clothing. High-end production, including of semiconductors essential for producing chips built in Taiwan, faces problems. Qatar produced a third of the world’s helium, a critical component of the semiconductor production, but it stopped production on March 2. Remittances from millions of workers from South Asia and Africa who are employed in the Gulf region have been significantly disrupted.
In Africa, Nigeria has seen fuel prices rise by over 50 percent, despite the country being a massive oil producer and exporter. In Kenya, the fuel price regulator hiked petrol prices by over 16 percent and diesel prices by over 24 percent in mid-April, following a 68 percent increase. The surge in natural gas prices and prices for fertilizers has driven up costs for African farmers, threatening lower crop yields and outright famine in areas where subsistence farming prevails. Currency depreciation in several countries is amplifying the impact of global price increases, making imports even more expensive, eroding real wages and pushing up already crippling debt repayment costs for financially strapped governments.
There is a broad threat to the integrity of the global financial system. Nick Beams (Beams) cites a recent letter to G20 finance ministers and central bankers from Bank of England governor Andrew Bailey who has warned of vulnerabilities including: “stretched asset valuations; the build-up in the non-bank sector of high and increasingly concentrated leverage; and liquidity mismatches [the use of short-term money to finance long-term illiquid assets], opacity and growing complexity in certain markets, notably private credit.” It said there was “an increased likelihood that multiple vulnerabilities could crystalize at the same time, thereby amplifying the threat to financial stability and the provision of critical financial services.”
Economist Mike Hudson (Hudson) has warned that the US economy is built on a Ponzi scheme that depends on continuing to pour money into a bloated, bubbly financial system based on unsustainable speculation, not industrial production.
Declining Empire
It is important, I think, to distinguish between Berletic’s view of an aggressive US empire in competition with its nearest rival, China - which could still suggest a vibrant empire, one that may yet achieve its ambitions of unipolarity - as against that of Alfred McCoy (McCoy), who argues that the US is following a historical script of imperial decline, one symptom of which is “micro-militarism:"
“Writing more than 2,000 years ago, the Greek historian Plutarch gave us an eloquent description of what modern historians now call “micro-militarism.” When an imperial power like Athens then, or America now, is in decline, its leaders often react emotionally by mounting seemingly bold military strikes in hopes of regaining the imperial grandeur that’s slipping through their fingers. Instead of another of the great victories the empire won at its peak of power, however, such military misadventures only serve to accelerate the ongoing decline, erasing whatever aura of imperial majesty remains and revealing instead the moral rot deep inside the ruling elite.
There is mounting historical evidence that America is indeed an empire in steep decline, while President Donald Trump’s war of choice against Iran is becoming the sort of micro-military disaster that helped destroy successive empires over the past 2,500 years — from ancient Athens to medieval Portugal to modern Spain, Great Britain, and now the United States. And at the core of every such ill-fated war-making decision lay a problematic leader, often born into wealth and prestige, whose personal inadequacies reflected and ramified the many irrationalities that make imperial decline such a painful process.”
Israeli Atrocities
Owen Jones has a devastating piece (Jones) Israel is raping Palestinians with dogs.
In Lebanon, in the context of so far fruitless talks between the US, Israel and Lebanon in the US State Department Israeli violations of the ceasefire continue with airstrikes, demolitions, and forced displacement orders. The Israeli military re-issued warnings ordering residents not to approach areas near the Litani River, while prohibiting returns to dozens of villages across southern Lebanon. Prominent Lebanese journalist Amal Khalil was killed after what appeared to be a targeted Israeli strike. Israeli newspaper Haaretz reports that Israeli soldiers have been looting significant amounts of property from homes and businesses in southern Lebanon, according to testimonies given to Haaretz by Israeli soldiers and commanders stationed inside the country, including stealing motorcycles, televisions, paintings, sofas, and rugs on a wide scale.
From Drop Site News (Drop Site) we learn that over the last 24 hours, six Palestinians were killed and 18 were injured in Israeli attacks across Gaza.
“At least nine Palestinians, including three children, were killed in Israeli strikes across the Gaza Strip on Wednesday and Thursday, according to WAFA. At least sixteen Palestinians have been killed by settler gunfire in the occupied West Bank since the beginning of the year, according to the Palestinian Health Ministry—surpassing the total killed by settlers in 2025. Additionally, over 24 Palestinians have been killed by Israeli soldiers in the occupied territory since the start of 2026, reported OCHA. Data from the Wall and Settlement Resistance Commission shows that Israeli forces and settlers carried out 1,819 attacks in March alone, including 1,322 by Israeli forces and 497 by settlers.”
Reporting for The Intercept, journalist Sam Biddle (Biddle) warns of propaganda outlets posing as regular news sites. The story concerns Al-Fassel and Pishtaz News that publish pro-U.S. coverage about the war on Iran and the Trump administration’s plan to redevelop Gaza.
“Al-Fassel’s YouTube account, for instance, has racked up millions of views on Arabic-language videos praising the Trump administration’s Gaza policy and exhorting Hamas to cease “taking orders from the Iranian regime” and release Israeli prisoners. On Pishtaz News, a poll on the homepage recently asked: “[H]ow would you describe your belief about the Supreme Leader’s current health status and whereabouts?” Possible answers range from “In good health but hiding” to “Disfigured” or “Dead.” The excellence of Saudi and Emirati leadership, both close military partners of the U.S., is a recurring theme.”
Russia-Ukraine
Following up on his commentary yesterday as to Putin’s vulnerability to growing public and elite unrest over the seemingly interminable or at least inconclusive war for the Donbass and its economic consequences, Gilbert Doctorow (Doctorow) cites the address yesterday by Russian Communist Party leader Gennady Zyuganov, who has warned that there may be a repetition of the revolutionary 1917 scenario in contemporary Russia. This allegedly set Russian social networks afire. While I do think it is very likely that our knowledge of internal political struggles in Russia is grossly under-reported and misreported, I think Doctorow may be in danger of paying too much attention to the eternal presence of the discontents who figure in every regime everywhere at every time. Further, he seems insufficiently alert to the contradictions that exist between the inconveniences and frustrations that beset many ordinary Russians in a way that might well and probably should remind them of the initial promises of the 1917 Bolshevik revolution, and the business preoccupations of Russian elites whose commitment to capitalism is total. Among the major sources of discontent are high interest rates that the Russian Central Bank has used as an instrument to moderate excessive growth that threatened in 2025 and to contain inflation, up until now reasonably effectively but which have now led to a 1.5% decline in GDP.
European leaders in Brussels have released the €90bn loan for Ukraine that will keep it in the fight with Russia for another two years. Ukraine announced yesterday it was turning the Druzhba oil pipeline back on, and Hungary and Slovakia both said they would sign off on the loan – if the oil actually arrived. The deal is not actually signed as both Bratislava and Budapest are still considering it. Brussels has also passed the twentieth sanctions package that will be imposed against Russia. However, that was gutted of some of its most painful measures by vested interests. IntelliNews reports that this money includes a distribution of €45bn for this year. About two thirds will go on defense. It is also enough for the first three quarters of next year. There's still about €50bn missing which Brussels intends to raise from the other G7 members - although they have not committed to that yet. According to IntelliNews, Ukraine has suffered a massive population decline - around 20 million - and is desperately short of soldiers. One source may possibly be deportations of Ukrainian male refugees from Europe (I posted on this the other day, indicating there is a lot of confusion as to what exactly is going on); and another may be the almost certainly overhyped arrival on the battlefield of robots, although I agree that, like drones, these do have the potential to fundamentally change the nature of warfare. Whether Ukraine is uniquely advantaged in this respect I very much doubt. Anything Ukraine (or should we simply say NATO?) has shown itself able to do technologically the Russians have shown they can do the same or better. Of course, this is a game in which the Pentagon also has great interest. Ken Klipperstein (Klipperstein) reports the U.S. military’s secretive Special Operations Command plans to establish its first-ever center for AI-driven missions like targeted assassinations.
“Autonomous warfare is all the rage at the Pentagon, where computers and artificial intelligence process intelligence data, select targets and then transmit kill orders to a waiting robot, or a “loitering” missile or airplane.”
The new “Special Operations Autonomous Warfare Center” is referenced in the $1.5 trillion Department of War budget request to Congress this week.
From a Pentagon point of view a continuing war in Ukraine could establish an excellent research drone for automated killing.
America
But at least Russia political apparatus does not suffer the same abysmal lack of legitimacy as Wall Street Journal columnist Damian Paletta (WSJ) tells us is the case of US Congress:
Americans universally loathe that branch of government.
Just 10% of Americans approve of Congress, according to a new Gallup poll. That’s just a smidge above the record low of 9%. This is sharply down from March 2025, when 31% of Americans approved of Congress. No more.
The big collapse in support, according to Gallup, has come from Republicans bailing on the U.S. legislature. Democrats were already pretty down on it. Currently, just 3% of Democrats approve of Congress