Trade War with Canada, Explained! (with Evan Scrimshaw)

The Iran war has reached the six-month mark, far beyond the quick victory Trump once promised. Pakistan says it’s still working on diplomacy to reopen the Strait of Hormuz, while Trump says he has no timetable for ending the conflict and insists the United States is winning. The big story is that there now appears to be free passage through the American-controlled corridor off Oman’s coast. About half of the prewar oil traffic is reportedly getting through. That would represent a significant loss of Iranian leverage — but only if crude prices begin to fall. Brent crude remains just under $90 a barrel. That’s the low end of high, not the meaningful decline we saw during the memorandum-of-understanding period. Iran is at an impasse. Regime leaders have reportedly been doxxed, people aren’t getting paid because the country can’t move oil, and there are rumors that the supreme leader may be dead. If Iran’s leverage since the revolution was “Don’t interact with us or we’ll derail the world economy and set the region on fire,” that doesn’t appear to have happened. Its proxies haven’t ignited the region, its oil isn’t moving normally, and it may now be operating without a supreme leader. Politically, though, this has been an absolute disaster for Trump. It fractured his right flank and gave independent voters permission to say, “No, this guy sucks. He lied.” He called himself the president of peace, and now we’ve been at war with Iran for six months. Iran’s goal is to make Trump pay in the midterms, and Trump is doing a lot to help. He doesn’t have tremendous instincts for winning races when he isn’t on the ballot. Politics Politics Politics is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber. The administration may be looking to Venezuela for relief. It’s negotiating with the interim government for American ownership stakes in more than a dozen productive oil fields holding about 90 billion barrels of proven reserves. Venezuela would receive investment and additional revenue while American and other private firms rebuilt production. Is this energy security or an extraordinary American claim on another country’s resources? To quote the Stephen A. Smith meme: We don’t care. At least not when it comes to the one thing that matters in American politics — gas prices. So go gas prices, so goes the economy, inflation, and probably the midterms. Trump’s original pitch was that tariffs might create instability and make foreign goods more expensive, but Americans could count on cheaper energy. A funny thing happened on the way to Tehran, and that got screwed up. More Venezuelan oil could push prices down and make it easier to refill the Strategic Petroleum Reserve without buying expensive crude. It would also almost certainly benefit the oil companies that remain furious about Hugo Chávez taking their equipment. Chapters 00:00:00 - Intro 00:02:14 - Trade War with Canada 00:34:44 - Update 00:36:49 - Iran 00:42:19 - Venezuelan Oil 00:45:13 - 9/11 Trial 00:47:25 - Evan Scrimshaw’s Midterm Picks 01:25:03 - NFL 01:48:34 - Wrap-up This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.politicspoliticspolitics.com/subscribe