Bullets:
Beginning in March, Iran targeted financial centers in the Persian Gulf region that are major holders and traders of US Treasury bonds.
The closure of the Strait of Hormuz dramatically shrank trade flows into Gulf States, who historically cycle the revenues from energy sales into purchases of US government bond debt.
Since 2022, China and the BRICS countries have been liquidating their Treasury holdings, and in 2026 other countries are selling.
Iran’s stated objective is to push US forces completely out of the Middle East, and Washington officials are considering permanent closure of bases that were heavily damaged by Iranian drones and missiles.
Closing scene, Hukou Waterfall, Shaanxi
Resources and links:
Iran targeting buyers of US Treasury bonds: Parliament speaker
https://thehill.com/policy/international/5796980-ghalibaf-warns-treasury-buyers/
Table 5: Major Foreign Holders of Treasury Securities
https://ticdata.treasury.gov/resource-center/data-chart-center/tic/Documents/slt/_table5.html
The myth of safe bonds in wartime
https://business.columbia.edu/insights/government-bonds-in-wartime-loss
US Treasury bill market under growing strain from Middle East turmoil
https://www.intellinews.com/us-treasury-bill-market-under-growing-strain-from-middle-east-turmoil-434225/
Foreign holdings of US Treasuries fall in June, led by Japan, UK, China, data shows
https://www.reuters.com/world/china/foreign-holdings-us-treasuries-fall-june-led-by-japan-uk-china-data-shows-2026-08-17/
IntelliNews Lambda: China selling off US T-bills in preparation for White House clash
https://www.intellinews.com/intellinews-lambda-china-selling-off-us-t-bills-in-preparation-for-white-house-clash-423587/
Foreign Countries Aren’t Buying Treasuries Like They Used To. How That Could Be Trouble for Bessent.
https://www.barrons.com/articles/china-europe-treasuries-bessent-bonds-bf70e74a
Iran Sees an Opening to Kick the U.S. Out of the Gulf
https://www.wsj.com/world/middle-east/iran-sees-an-opening-to-kick-the-u-s-out-of-the-gulf-b9f9cc53
From shields to targets: What is the future of US military bases in the Gulf?
https://www.newarab.com/analysis/what-future-us-military-bases-gulf
Pentagon weighing smaller U.S. military presence in Gulf once Iran war ends
https://www.washingtonpost.com/national-security/2026/08/18/pentagon-evaluating-smaller-us-military-presence-persian-gulf-after-iran-war/
Mapping US troops and military bases in the Middle East
https://www.aljazeera.com/news/2025/6/12/mapping-us-troops-and-military-bases-in-the-middle-east
Bessent Says Hormuz Will Be ‘Worthless’ as Oil Bypasses It
https://www.bloomberg.com/news/articles/2026-09-01/bessent-says-hormuz-will-soon-be-worthless-as-oil-bypasses-it
The Iran war just broke the petrodollar
https://www.japantimes.co.jp/commentary/2026/04/13/world/iran-war-breaks-the-petrodollar/
Pentagon moves to replenish arsenal after Iran war
https://shafaq.com/en/World/Pentagon-moves-to-replenish-arsenal-after-Iran-war
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