CRACKING UP!

Our media represents everything that Israel and US are doing to Iran, but they're not reporting accurately what Iran is doing in retaliation. There's no surprise there! Israel and the US certainly do not want you to know how the Iranians have hurt them.

In my opinion the war being LOST by Israel and US. It is not about the first few days, it is about how long the supporters of Israel and trhe US can tolerate their economies being torn apart.

I'm talking about a very large number of nations whose economies will be fracture if not turned upside down.

Just a few examples:

To keep operating the UAE spends $27 Million USD per day even when there is no business in that country's airspace.

Think of that on a Gulf-wide basis, include every Gulf state. 

Emirates burns approximately US$25–30 million in fixed costs every 24 hours when its network is grounded. During normal operations, the airline generates about US$97.6 million in daily revenue. Key cost components driving these figures include high fuel consumption, which totaled US$8.9 billion in 2024-25, alongside aircraft ownership and staff expenses. 

Key Financial Figures

• Daily Revenue: Approximately US$97.6 million.
• Daily Grounded Costs: US$25–30 million.
• Annual Fuel Costs (2024-25): AED 32.6 billion (US$8.9 billion). 

Key Operational Drivers

• Fleet: The airline operates an all-widebody fleet, primarily Airbus A380s and Boeing 777s.
• Efficiency: Dubai International Airport enables high aircraft utilization due to no night flying restrictions.
• Costs: Fuel and employee costs represent the largest expense

Then think of all the losses in oil shipments held up in the Hormuz straits. 

Daily Costs and Shipping Impact (March 2026):

• Supertanker Costs: Benchmark freight rates for Very Large Crude Carriers (VLCCs)—which move 2 million barrels of oil—hit an all-time high of $423,736 per day on Monday, March 2, 2026, marking a rise of over 94% in a single day.
• Insurance Costs: Spiking war-risk premiums have added over $1 million in insurance costs alone for a single voyage of a $120 million VLCC, rendering some journeys economically unviable.
• Freight Rates: The cost of a Gulf-to-China voyage for a VLCC skyrocketed to $89 per metric tonne, an increase of 560% since early January 2026.
• Traffic Reduction: Nearly all ships stopped transiting the Strait, with maritime traffic dropping by 70% to 81%, leaving over 150 ships stranded or waiting in surrounding waters.

But these costs are not restricted to the Gulf States;

Toursim:

The ongoing conflict involving Iran is severely impacting Middle East tourism, with projections indicating a 23–38 million decline in international arrivals for 2026 and a potential loss of 

$$

 billion to 

$$

 billion in visitor spending. Safety concerns and widespread, significant airspace closures are driving this sharp decline. 

Key impacts include:

• Arrival Declines: Inbound tourist arrivals to the region are expected to drop by 
  

  $$
   to 
  

  $$
   in 2026 compared to previous forecasts.
• Economic Loss: The projected 
  

  $$
  B–
  

  $$
  B in lost revenue represents a major hit to tourism-dependent economies in the Persian Gulf.
• Operational Disruptions: At least 30,000 flights have been canceled, with extensive airspace closures disrupting travel in hotspots like Dubai and Doha.
• Industry Impact: Hotel stocks, including major players like Marriott, Hyatt, and Hilton, have seen dips as bookings decline and cancellations rise, with analysts noting that this could end the recent tourism boom in the region

DESALINATION PLANTS

Aside from the occasional tourist hotel being hit, or the occasional de-sal plant  damaged: e.g., Bahrain, Saudi, UAE, many countries which all rely upon desalinated water!

They almost cannot exist without these de-sal plantsIf they get hit during this warfare, any country which is hit will really suffer.

Key Details on Reliance

• High Dependency: In many of these nations, desalination provides between 50% and over 90% of potable water needs.
• Specific Country Data:
  • Kuwait: Over 90% of drinking water comes from desalination.
  • UAE: Roughly 90% of drinking water is produced via desalination.
  • Oman: Approximately 86% of water is provided by these plants.
  • Saudi Arabia: Roughly 70% of drinking water is produced through desalination.
  • Qatar & Bahrain: Also rely almost entirely on these systems for water.
• Infrastructure & Risk: There are over 400 desalination plants across the region. These facilities are considered the "backbone of water security" in the region, but they are also highly vulnerable to disruption. 

These nations are often described as "saltwater kingdoms" or "human-made fossil-fueled water superpowers" due to their reliance on these energy-intensive plants. 

Let's not forget Israel's dependence on their desal plants:

Israel relies heavily on desalination for its water supply, with desalinated seawater providing approximately 70-80% of the country's potable water needs as of early 2026. This technology has transformed Israel from a water-scarce nation into one with a surplus of water, with desalinated water now accounting for nearly all household drinking water. 

But then there's the issue of how much terror from the skies any nation's population can take! Israelis are now living a life of fear they have never experienced before, which I think is great. It might teach them what it is like for the people of Gaza and Lebanon, running from their homes or apartments to bunkers every few minutes.

But on the much wider scale of the international economies, this war is hurting so many other nations, it's changing allegiances everywhere.

Example: Ukraine has offered to assist Saudi Arabia with drone technology:

Zelenskiy says Ukraine has unique drone experience, discusses joint production with Dutch PM

In the US, Trump's MAGA supporters are experiencing large slumps in their regional support base. So how long can Trump last? How long can the Republicans last? 

The world is in a terrible state, we all know that. But why are people so slow to realise the true depths of this horrible mess? All of us are in it to some extent.

We in Australia are most fortunate but what happens here when our oil reserves are run down? 

Australia holds 36 days of petrol, 34 days of diesel, and 32 days of jet fuel in stock as of March 2026, which is the highest in 15 years, but still below the International Energy Agency (IEA) 90-day benchmark. 

A lot of our oil , yes "OUR OIL", is stored under an arrangement with the US in USA.

Key Details of the Agreement

• Purpose: To bolster Australia’s fuel security and address emergencies.
• Location: The oil is stored in the U.S. Strategic Petroleum Reserve (SPR), the world's largest emergency stockpile.
• Background: The initiative was spearheaded by former Energy Minister Angus Taylor, taking advantage of historically low oil prices in 2020.
• Strategic Need: Australia historically failed to meet the IEA 90-day reserve requirement, relying on this international arrangement.
• Access: While stored in the US, the oil can be released to the global market in a coordinated emergency.

Does anyone believe we will ever see any of OUR OIL if the US is running short for their own needs?

And very soon the inflation we thought was already bad enough with interest rates currently at 3.85%, well, I'm sure these will both take off again and will be MUCH HIGHER later this year.

But that's a small issue compared to what other nations are facing.

So let's enjoy our lives as best we can. We really can't change what happens in any of the Gulf states, Israel or USA. 

 

They are all having to deal with extreme changes in their own countries because of the extreme damage which they are all inflicting upon each other.

My life is pretty good, considering my age. I'm seeing a world  gone mad! People at large cannot see how much they have been lied to: e.g., that Israel/ US started the war, not the other way around. 

But no matter what, the economic war has just begun and the longer Iran can keep their missiles getting through the "iron dome defences" they will win that war. They will bring many economies to their knees.

 

 

pt