October 4—In the unfolding third world war between the US and China, Iran’s plentiful oil is key for Chinese imperialism. Both for its economic growth and as a secure oil supply during war.
Iranian oil can get to China by sea and by land, including by the newly built “Steel Silk Road” rail connection between Iran and China. It is up and running despite US bombing.
US imperialism’s goal is to deny Iran’s oil to China, its main rival, by taking over Iran. This would halt China’s economic rise and, in war, would paralyze China’s military.
Even though some US ruling factions criticize Trump for not getting other NATO members to support the attack on Iran, they are all committed to controlling Iran’s oil and the currency in which it is sold.
Petrodollar versus Petro Yuan
A crucial part of the fight between the US and Chinese imperialists is that Iran’s oil is sold in Chinese yuan and other currencies instead of the US dollar. More oil sold in yuan threatens the existence of the petrodollar.
In 1973 the Saudi rulers agreed to sell oil only in US dollars in exchange for US military protection. The Saudis used their influence in OPEC (the Organization of Petroleum Exporting Countries) to guarantee that all oil-producing nations would sell oil only in US dollars. Since 1973, oil was sold only in $US worldwide.
The petrodollar gave the US tremendous financial advantage. The US government could print money, backed up by the petrodollar. All other governments had to buy dollars and invest in the US economy.
US sanctions (on Iran and others) have backfired as more transactions worldwide are now carried out in currencies other than the $US. This threatens the US capitalists’ global position.
The US imperialists, desperate to regain their lost financial and military dominance, urgently need regime change in Iran. If the petrodollar falls, the US economy will go into a deep depression.
The Gulf countries can no longer fully cooperate with the US sanctions against Iran because they fear Iranian attacks. That’s why the new US sanctions could mean the end of the US sanction regime. The Iranian rulers’ strikes on Gulf states have shown that US imperialists can no longer provide military protection.
The US government debt stands at $40 trillion. The annual interest payment alone is $1 trillion, even more than the defense budget. If the petrodollar collapses, this debt burden will mean huge attacks on the masses.
A ground invasion of Iran and the collapse of the petrodollar would cause a worldwide depression as the prices of oil and fertilizer soar. Those prices are already rising.
Twenty-two countries participated in the recent Shanghai Cooperation Organization Summit (led by Russia and China). They condemned the sanctions and US bombing of Iran. They pledged support for Iran and for Eurasian economic integration. They are building a financial system outside US and NATO control. This will make US imperialism even more desperate.
Expanding War and Our Communist Future
The recent advance of the Iranian-backed Ansar Allah (Houthis) in Yemen against Saudi interests, and their attack on a key pipeline, put the world’s supply of oil at greater risk and expanded the war. Ansar Allah has gained control of the crucial Bab al-Mandeb Strait and has threatened the Saudi capital Riyadh.
The US government is increasing punitive sanctions on Iran. These attack Iranian workers, not the government. The Iranian masses are already suffering from low wages, high inflation, and scarcity. Meanwhile, Chinese and Russian imperialism are supporting the capitalist Iranian government with intelligence and weapons to fight US imperialism.
Oil workers in Iran were key in overthrowing the hated Shah in 1979. Workers and soldiers everywhere are key today in the fight to turn the imperialists’ exploitation and war for oil profits into revolution for communist workers’ power.
The contradictions between the workers and the capitalists are sharpening everywhere. The workers don’t have “national interests.” We have international class interests! To fight for and build a communist world where we produce only to meet the needs of the working masses.
The wars are increasing attacks on workers everywhere. They are exposing capitalism as a system only capable of death, destruction, and fascism. Communism is our future! It means life and health for the international working class. Let’s build ties and solidarity among workers, youth and soldiers worldwide and a mass International Communist Workers’ Party.
Read Soldiers, Sailors, Marines: Crucial to a Communist Workers’ Revolution here
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