A week ago I asked whether global energy markets have “Trump Derangement Syndrome.” I was being a bit arch because I didn’t mean in the sense that MAGA world means, which is being somehow obsessively, compulsively anti-Trump. I meant the opposite. Are the markets wedded to a kind of Trump magical thinking? That somehow he’ll always find a way to thread the needle or slip out of his self-made crises? I’ve tried to be very aware of the fact that I’m totally green on the question of global energy markets. And since oil futures are at least flirting with twice the price that they were at when this war started, it’s hardly like markets aren’t reacting to it. A friend who follows energy markets very closely walked me through some of the reasons why the markets response has been more tempered than one might expect: existing slack in the oil markets on the eve of the war, continued impact of the recent release of 400 million barrels of oil, and uncertainty about whether the U.S. can or will reopen the Strait of Hormuz. But I get more and more indications, some in just reading the news closely, some in small bits of information I pick up from sources, that there really is something going on here.

Kate and Josh discuss the DHS secretary confirmation hearings, a big defection on Iran and the Illinois primaries.

Donald Trump’s Iran war is playing out like a Defense Department war game in which a neophyte is schooled in the stodgy and risk-averse reasons why a couple of generations of presidents and joint chiefs of staff have resisted demands to overthrow Iran’s clerical regime by force. Well, yes, we do have a super, super powerful military, the schoolers might say, and Iran is still using rusted-out jets we sold the Shah half a century ago, but here’s the thing …. and you go from there.

I’ve written a few posts now about a simple fact that is so apparent in news coverage that it is almost hiding in plain sight: the entire discussion of President Trump’s war with Iran right now is not how close he may be to achieving whatever his war aims might be. It’s the impact of the conflict on global energy prices and how this may impact the cost of gas in the U.S. and thus Trump’s electoral fortunes in November. We now have two closely reported articles which make clear that this wasn’t even a contingency that the White House planned for.

This passage is from a new CNN article which comes after a similar one in the Times ….

Donald Trump may have started his war with Iran with the aim of regime change. But it has quickly became a battle over control of the global oil futures market. Iran may have few, if any, conventional weapons it can use to block, retaliate against or bloody the United States. But it has the ability to menace, if not close, the Strait of Hormuz. And that means the ability to trigger a global energy and economic crisis that may force the United States or at least its president — synonymous for the moment — to relent. What’s both fascinated and confused me is the response of global oil markets to the crisis, which seems based on at least a short-term willingness to credit Trump’s public comments as having some strong relationship to reality, which of course is absurd.

Let me give you at least a few examples of this.

Kate and Josh talk the Iran war and Kristi Noem’s ouster.