By waging war on Iran, Trump leaves the US economy more vulnerable

The article discusses the potential economic vulnerabilities for the U.S. resulting from escalating tensions with Iran. It argues that a war could trigger an oil shock, but more significantly, it could disrupt vital foreign capital inflows to the U.S., which relies on these funds due to its current account and budget deficits. The article questions whether international investors will continue to invest in U.S. bonds amid the conflict, and what the impact of curtailed financial flows would be on the U.S. war effort. While some believe U.S. energy independence could mitigate the impact of an oil shock, the article emphasizes the potential risks to the U.S. economy stemming from its dependence on foreign capital during a period of conflict.

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