Iran is going after America's debt it's targeting the $40T America owes
3 hours ago
- An Iranian politician, Mohammad Bagher Ghalibaf, posted a modified Taylor Rule equation on September 16, 2026, adding variables for the Strait of Hormuz and Bab el-Mandeb to claim Iran influences U.S. interest rates via oil price control.
- Higher oil prices due to controlled chokepoints lead to inflation, which forces the Federal Reserve to raise rates under the Taylor Rule—a trap where a tool for borrowing excess is used against oil supply shortages.
- Iran’s strategy aims to strain the U.S. economy by increasing its debt servicing costs through sustained high rates, while the U.S. counters with energy dominance to make the world dependent on American oil and gas.
- Both Iran and the U.S. benefit from expensive oil temporarily, but their goals diverge: Iran wants prolonged high rates to burden U.S. debt, while the U.S. seeks to lock in energy contracts and later reduce prices.
- The conflict highlights a race between Iran’s influence over oil chokepoints and America’s energy expansion, with the next Fed meeting on October 28 being a key test of Ghalibaf’s formula.