This analysis by Eoin McLaughlin of Heriot-Watt University compares the current closure of the Strait of Hormuz, more than seven months after the US attacked Iran, with the 1956 Suez Crisis. Both episodes raise the question of how far geopolitical power can outrun economic power, and the article argues that Britain's loss of superpower status at Suez reflected relative economic decline, currency weakness and dependence on American financial support. It notes signs of strain in the US financial system today, including Treasury interventions over the summer and rising bond yields. The author also highlights China's economic rise relative to the US since 1990 as a striking shift in the balance of economic power.
Summary written by Upside AI from the original article. Read the source for full details.
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