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September 26, 2024
The Cost

šŸ‡ŗšŸ‡øšŸ‡ØšŸ‡³šŸ‡®šŸ‡± What will the surge of US forces to the Middle East cost the military?

The day the Middle East almost erupted into a full regional war this summer, Lloyd Austin was touring an Asian shipyard.

Just before the defense secretary visited Subic Bay, Philippines, the former site of a massive U.S. Navy base, Israel killed the political leader of Hamas, who was visiting Iran.

Austin’s July visit was meant to show his focus on Asia, the region America says is its top priority. Instead, he ended the trip distracted by the Middle East, spending hours containing the crisis on a flight back to Washington.

Since Oct. 7, when Hamas’ attack on Israel provoked all-out war in Gaza, the Pentagon has been on call. When the region has approached a wider war, the Defense Department surged forces there to calm it down. But after a year, some in Congress and the Pentagon are growing concerned about how to sustain that pace, and what it will cost the military in the long term.

Call it the U.S. Central Command squeeze. The Pentagon insists its surge has helped stop the Middle East from falling into chaos. But the longer the region borders on conflict, the more the U.S. tests its endurance for crises later on, most notably, a future conflict with China.

The pressure on the military increased even further this week. After their most intense attacks in almost 20 years, Israel and the Lebanese militia group Hezbollah are close to a larger war. On Monday, Austin yet again ordered more troops to the region, joining 40,000 other American personnel there, 6,000 more than normal. Another aircraft carrier may soon follow.

ā€œWe’re caught in this kind of never-ending quagmire of having to divert resources, and we’re burning [out] on the back end,ā€ a senior congressional aide said.

Their message was that America’s military wouldn’t exhaust itself anytime soon, but that a year of unplanned deployments and spent missiles come with a cost. Even more, they said, the longer the crisis continues, the more the Pentagon will have to manage tradeoffs between the urgent needs of the Middle East and the rising challenges of the Indo-Pacific.

Pentagon leaders say they calculate the risk in pulling assets from one region to another, and that the choice to move forces away from Asia is a sign that they consider the region stable enough to do so.

ā€œI have relayed messages that it is better to invest in deterrence where there is no overt conflict, rather than intervene in a conflict where there is one already,ā€ the Philippines Secretary of National Defense Gilberto Teodoro said in an August interview. He wouldn’t specify who in the U.S. those messages have reached.

That said, the cost of this posture is also becoming clearer.

The first, and perhaps the most important, part of that tally is the military’s ability to meet future needs, known as ā€œreadinessā€ in defense jargon. By sending more forces to the Middle East, the Pentagon is accepting what amounts to a mortgage: higher costs on its forces to avoid an even bigger bill.

Without specifying the impact of these extensions so far, multiple defense officials and congressional aides said the U.S. is already having to manage ā€œtradeoffsā€ between the needs of the Middle East today and other areas in the future.

This February, the Houthis shot a ballistic missile at the Navy destroyer Gravely in the Red Sea, one of many times the militia group targeted American ships in the waterway.

But this one came close. In fact, the ship used a short-range weapon — rather than the typical missile — to intercept the attack. The Houthis came within a nautical mile of success, according to Navy officials.

This is an example of the other two costs involved in the Pentagon’s response.

The Navy estimates that between Oct. 7 and mid-July, it fired $1.16 billion worth of munitions while on station in the Red Sea.

šŸ”— https://www.defensenews.com/pentagon/2024/09/25/what-will-the-surge-of-us-forces-to-the-middle-east-cost-the-military/

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šŸŒ† Market News Digest
[July 3, 2026 EST]

šŸ”„ Top Stories
• Middle East risk flares — IDF hits Hezbollah sites in south Lebanon; Houthis threaten Saudi assets; France deploys naval/mine-countermeasure assets near Hormuz.
• U.S. oil market scrutiny — DOJ/FTC say they’re monitoring crude for price-fixing/collusion as Brent settles at $72.12/bbl.
• Trump pardons saga — Trump signs pardons for six and faces fresh scrutiny after NBC reported undisclosed stock purchases before tariff pause.

⛽ Oil & Energy
• Gulf crude exports topped 10M bpd in June but remain ~40% below pre-conflict levels; Fitch flags ongoing Iran/Mideast risk to corporates and oil forecasts.
• CMA CGM warns Hormuz transit charges would be ā€œdevastatingā€; Airbus says defense cooperation remains pressured.

šŸ“Š Markets & Macro
• Germany’s 2027 draft budget lifts borrowing to €203.7B and spending to €555.4B; euro equities firm with DAX +0.85%.
• ECB/BoE message: inflation still the focus, but Bailey says UK ...

Defeat

šŸ‡®šŸ‡·šŸ†šŸ‡ŗšŸ‡ø Iran Is a Bigger Defeat Than Vietnam | Foreign Policy

At his second inaugural, U.S. President Donald Trump pronounced his hope ā€œthat our recent presidential election will be remembered as the greatest and most consequential election in the history of our country.ā€ By losing his Gulf war, Trump has achieved that goal. His choice to launch a campaign against Iran was encouraged by others, but fully his own. It has led to a reversal that marks a strategic calamity far greater than the U.S. defeat in the Vietnam War.

Defeat in the Iranian war looks, on the surface, nothing like other U.S. military defeats. The speed of the war and its remoteness have lent an air of unreality to the whole endeavor. The White House has not been burned, as it was in 1814; there have not been protests against a nonexistent draft. The absence of substantial U.S. casualties in this conflict also masks the scale of the U.S. defeat. To be sure, the war has been deadly: Thousands of Iranians, ...

The Path to War

According to The Wall Street Journal, Donald Trump reviewed military options for a full-scale war against Iran to ā€œfinish the job,ā€ but has decided, for now, not to move forward.

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