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Sunday, June 07, 2026

Deleting Government Data: The Trump Administration Memory Hole


 June 5, 2026

Photo by Jon Tyson

Since day one of his second term, Donald Trump has been waging a war against information, government data collection and the public’s right to know. And yet over a year later, the White House is still finding new ways to delete inconvenient facts.

Most recently, CBS News reported that the Justice Department has deleted press releases having to do with the January 6, 2021, riots at the Capitol. As CBS framed it, “The purge of news releases documenting criminal charges, convictions and sentencings is the latest step by the Trump administration to revise the history of the assault on the Capitol.”

Given Trump’s commitment to pardoning or commuting the sentences of those who sought to overturn the 2020 presidential elections, these latest actions may come as no surprise. Nonetheless, the actions would appear to be tied to the administration’s drive to create a $1.7 billion slush fund to compensate its political allies who were supposedly “targeted” by the Biden Justice Department. While this plan has run into some legal and political headwinds of late, the Trump administration’s delete-the-evidence strategy serves a purpose. As CBS noted, the Justice Department removed releases detailing convictions against far-right groups like the Proud Boys – several of which were recently vacated by request of the administration.

The Justice Department, it should be noted, is proud of its work to memory hole the January 6 crimes: “We will do everything in our power to make whole those who were persecuted for political purposes…. This includes stripping DOJ’s website of partisan propaganda.”

Destroying CFPB

There are other ways they are purging inconvenient information from the previous administration. From the start, the Trump administration made no secret of its intention to dismantle the Consumer Financial Protection Bureau (CFPB), the independent agency established under the Dodd-Frank Act that enforces consumer protection laws. The Trump administration’s actions to undermine and essentially eliminate the CFPB – Elon Musk famously vowed to ‘delete’ it – have resulted in a protracted legal battle over its very existence.

For the White House, destroying the CFPB means disappearing the work that the agency has done. As reported by the news site NOTUS, “The CFPB removed around 1,700 website pages spanning press releases, consumer advisories, speeches, testimony and op-eds dating before February 2025.”

The administration has removed archives of material that are a core part of what the CFPB does – protecting consumers. As NOTUS reported, this includes consumer advisories and resources to help consumers navigate financial matters like medical debt collection and hidden fees. And it’s not as if the agency has replaced the existing material – there have been no new advisories since the Trump strategy was put into effect.

Deleting inconvenient information obviously does a disservice to the public; in these cases, it increases the chances that Americans will be scammed and erases  information about crimes that were committed in support of Trump’s campaign to overturn an election he lost. The wider story of this administration’s destruction of government data – which has ranged from cancelling research on food insecurity to deleting a government report on right-wing domestic terrorism to cutting funding for climate tracking satellites – is about fulfilling a more fundamental goal: Making it harder for all of us to know what is happening in the world.

This first appeared on CEPR.

Peter Hart is the domestic communications director at CEPR. He previously worked in communications at the national advocacy group Food & Water Watch and before that was the activism director at the media watchdog group FAIR. For over a decade he co-hosted the group’s weekly radio show CounterSpin and coauthored a book about Fox News called The Oh Really? Factor.

UK

One hundred days of turpitude

JUNE 7, 2026

The End Fuel Poverty Coalition has tracked the energy price crisis, called on the Government to act and warned that the damage to household finances will be significant.

Today marks the first 100 days of the US-Israeli military action against Iran, which triggered the UK’s second major energy price crisis of the 2020s. 

The conflict has driven fossil fuel prices to fresh highs. Currently UK Natural Gas is around 38% higher and heating oil is 80% higher year on year. It has locked in a huge rise in energy bills from 1st July. At the same time, energy companies posted £26.2 billion in profits in just the first three months of 2026, and key figures linked to the energy industry saw their wealth grow. 

KEY FACTS (click on the link for source information)

July 2026 Ofgem average energy bill price cap increase13.5% / £221 per yearendfuelpoverty.org.uk
Gas unit rates (quarter-on-quarter, July Ofgem cap)Up 28%endfuelpoverty.org.uk
Typical household bill vs winter 2020/21Up 79%endfuelpoverty.org.uk
Cumulative extra household energy costs since 2021 (ECIU)£4,800endfuelpoverty.org.uk
Energy industry profits (Q1 2026, global)£26.2 billionendfuelpoverty.org.uk
Energy industry profits (Q1 2026, UK operations)c.£3 billion / £102 per UK householdendfuelpoverty.org.uk
Increase in the stock market value (market capitalisation) of 15 leading energy firms (26th Feb to 29th May)£52.4 billionNew analysis
Combined increase in value of shares of 10 energy CEOs (26th Feb to 29th May)£6.6 millionNew analysis
Combined wealth of 16 energy-linked Sunday Times Rich List individuals£74.2 billion (up £2.8bn in a year)endfuelpoverty.org.uk
Households potentially spending 10%+ of income on energy from 1st Julyc.13.5 millionNew estimate
Public saying energy firms are morally wrong to profit from Iran crisis74%endfuelpoverty.org.uk
Public support for Windfall Tax vs oppositionTwo to oneendfuelpoverty.org.uk
UK adults who have become more interested in home energy technology since the Iran conflict19.3 millionendfuelpoverty.org.uk

Simon Francis, coordinator of the End Fuel Poverty Coalition said:“Behind every percentage point on the Ofgem price cap is a household whose direct debit is about to go up and an energy firm whose profits already have. 

“One hundred days on from the start of the Iran conflict, the bill for Britain’s dependence on fossil fuels is landing on doormats across the country. The only people who benefit are the drill-more and bill-more brigade who would keep us hooked on gas to heat our homes, even after the North Sea industry has finished extracting the last drop of gas from the UK basin.

“Households need to know what support is coming, and they need a credible long-term plan that means the next foreign conflict or market shock does not send their bills even higher.”

He added: “The Iran conflict, like the Ukraine invasion before it, is a reminder that as long as our homes run on gas, our bills will be set by decisions made in Riyadh, Moscow and Washington. So while there is a cost to acting on climate change, the cost of not acting is even greater and is a cost already felt in energy bills.

“Staying on gas forever is not viable. Firms have already extracted 90% of commercially viable gas from the North Sea while posting billions in profits, and import dependence will only rise as the basin ages. Even industry figures admit that geological reality.

“But we cannot accept a transition that simply swaps one form of profiteering for another. The move to clean energy must not become a fresh opportunity for the market to extract profits from people who can least afford it. The benefits of change must flow to households, not disappear into the pockets of energy giants.

“A key policy that will deliver the transition is the Warm Homes Plan. This is the right vehicle for change, but delivery must be done right. We are calling on the government to adopt a Warm Homes Guarantee to underpin the Plan built around four commitments: real warmth and wellbeing outcomes, independent advice households can trust, strong rights and redress when things go wrong, and a measurable reduction in energy costs.”

Jonathan Bean, spokesperson for Fuel Poverty Action said: “Their billions come from our bills. This obscene profiteering from oil wars needs to stop, and our Government needs to focus on moving to renewables to give us greater independence and security. The benefits of cheap-to-produce wind and solar energy aren’t being harnessed to bring down our bills.

“The Government must take action to fix the rigged electricity market, cut excess grid and network profits, rapidly expand access to solar power and batteries, and give everyone access to the cheapest tariffs and free excess energy that is being wasted on  sunny and windy days.”

Tessa Khan, executive director of Uplift, said: “The cost of living crisis – high energy bills, rising food prices and the cost of filling up the car – are all being made worse by soaring oil and gas prices. That’s why accelerating the transition to renewables is just common sense now.

“And yet some politicians still want to lock the UK into decades more oil and gas dependence, despite the fact every new drilling project deepens the climate crisis and does nothing to alleviate the many costs being borne by households. New developments like Rosebank are not compatible with safe climate limits. It’s beyond time we take climate risks seriously and stop fuelling the crisis with new oil and gas drilling.”

Timeline of the Iran conflict impact on Uk energy bills

Phase 1: Immediate Shock (Late February to early March 2026)

The conflict triggered an immediate market response:

  • Wholesale gas prices rose 36% year-on-year by 3rd March, hitting levels not seen since 2023.
  • Heating oil costs surged 39% year-on-year.
  • Heating oil prices more than doubled in under two weeks, from 63.1p to 128.1p per litre.

Gas and electricity bills were protected until 1st July by the existing price cap, but the End Fuel Poverty Coalition warned the real risk lay ahead: if elevated prices persisted, they would feed directly into Ofgem’s May decision on the July cap. Around 1.5 million off-grid households, concentrated in rural areas and Northern Ireland, had no such protection.

Phase 2: Escalation and UK Government response (March 2026)

As the conflict deepened, gas prices spiked 124% month-on-month and 65% year-on-year by 19th March. Energy firm shares rose close to 10%, even as the FTSE 100 fell.

The Government announced a £53 million heating oil support package. EFPC welcomed it but warned it was limited in scale and slow to reach those suffering immediately.

On 18th March, EFPC wrote to ministers with an emergency support framework, including:

               •             A new Alternative Fuel Support Scheme for off-gas households

               •             Targeted unit rate reductions from July if the cap rose significantly

               •             A national energy debt relief scheme

               •             Reforms to Cold Weather Payments and the Warm Home Discount

By 20th March, projections pointed to a massive July increase what EFPC called a “Trump Tax” representing a 90% rise on pre-crisis levels.

Phase 3: Limited ceasefire (April 2026)

A ceasefire was announced on 8th April, but EFPC was clear: the damage was already done. Gas prices remained 38% up year-on-year and heating oil costs 78% above 2025 levels. Oil, LPG and gas had spent over five weeks at elevated levels, and all households would feel the impact from 1st July. The Resolution Foundation estimated the conflict would leave the typical working-age household around £480 worse off.

As the Government announced a further raft of policies designed to help the public move away from gas for heating, the crisis also accelerated a shift in public attitudes. Survation polling for EFPC found that 35% of the public (19.3m people) have become more interested in home energy saving technology since the Iran conflict began. The polling also found 77% agreed that “history just keeps repeating itself with energy prices” and 72% felt that reliance on oil and gas leaves the UK vulnerable to global price shocks.

Phase 4: Profits revealed (May 2026)

While households braced for higher bills, energy companies posted £26.2 billion in global profits in Q1 2026, with around £3 billion from UK operations: equivalent to £102 for every household in the country. Key figures include Equinor (£7.19bn), Shell (£5.07bn), TotalEnergies (£4bn) and BP (£2.4bn, more than double the year before).

EFPC’s analysis of the Sunday Times Rich List found the combined wealth of 16 energy-linked individuals grew by £2.8 billion in a year to £74.2 billion. A Survation poll found 74% of the public believed it was morally wrong for energy firms to profit from the Iran crisis, with support for the Windfall Tax running at two to one right across the country.

Phase 5: Energy bills rise (May 2026)

On 27th May Ofgem confirmed a 13.5% price cap rise from 1st July: £221 on the average annual bill, driven by gas unit rates up 28% on the previous quarter. Household bills are now 79% higher than before the energy crisis began in winter 2020/21. EFPC warned that any chance households had to reduce debts or build reserves before winter would be wiped out, and that the poorest neighbourhoods face a double burden: higher bills and homes seven times more likely to overheat in summer.

The way forward

One hundred days of higher prices and higher profits have left millions of households worse off through no fault of their own. The public have delivered a clear verdict: 77% say history keeps repeating itself on energy prices, and nearly 20 million people are now actively looking at ways to cut their exposure to fossil fuel markets. 

The Government must match that appetite for change with action, confirming bill support for the coming winter, scaling up clean energy to get households off the fossil fuel rollercoaster and fixing the electricity pricing system so the benefits of homegrown renewables are felt in household bills, not just on energy company balance sheets.

Image: https://www.amherstindy.org/2026/05/20/opinion-the-golden-opportunity-of-president-trumps-war-on-iran/ Photo: : AEBetako Gobernua, Rawpixel. (CC0 1.0 Universal)


Shadow banking is out of control – but how can it be fixed?



JUNE 6, 2O26

Mike Phipps reviews The Global Casino: How Wall Street Gambles with People and the Planet, by Ann Pettifor, published by Verso, and We Need to Tax Billionaires, by Gabriel Zucman, published by Basic.

Global financial markets and their gambling habits are largely invisible to most people, Ann Pettifor tells us in this new analysis. Nor are the economies we inhabit really governed by elected politicians, however much our current government thinks they are: “Instead the value of an economy and  of a nation’s currency and its interests rates as well as the levels of investment that ought to provide livelihoods and both economic and ecological security are all economic levers largely wielded by unaccountable and irresponsible financiers.”

Growing financial globalisation is especially dangerous, because financial assets are intangible, based on something ephemeral: money. And money, contends the author, is a social construct: credit, a promise to pay, based on trust, upheld by regulation and law.

But the global financial system is largely lawless and unregulated. Shadow banking – beyond the regulatory boundaries of states – currently gambles with assets estimated to be worth $217 trillion.

The system has a demonstrable power to destabilise governments. It ignores democratic priorities, for example, by funding the fossil fuel industry. The 2007-9 Global Financial Crisis showed little will to regulate the problem. Generous state bailouts gave financial institutions the belief that they were too big to fail and too big to jail.

Political institutions have hollowed out and centrist politicians have no answers about what to do about government by the markets. This fuels the rise of the populist right, Pettifor pointed out in a recent interview, as people say “Give me a strongman to protect me from markets that strip me of the right to a decent roof over my head, food, education, health.”

The dismantling of the financial system’s guardrails, argues Pettifor, began in 1971 with President Nixon’s suspension of the convertibility of the US dollar into gold. The shift away from a national bank-based system to a global unregulated market paved the way for the recurring financial crises subsequently experienced.  At the same time, the over-valuation of the dollar as the world’s reserve currency collapsed manufacturing in the US rustbelt and expanded US consumption of goods and services produced in China and elsewhere, worsening the US trade deficit. But it also harmed the economies of poorer countries which were now forced to buy oil and pharmaceuticals in a currency much stronger than their own.

Today, the export orientation of almost all of the world’s richest economies has led to record levels of overproduction of stuff that can’t be consumed simply because people cannot afford to buy it. So, rather than, as we are frequently told, the public living beyond their means – which forces people into debt – it’s the economy that is operating beyond the means of the public.

There is a lot to chew over here, such as how money cannot and should not be a tradeable commodity, and how households have been exposed to global financial markets thanks to the privatisation of pension funds. The essential point is that the colossal sums of money circulating in global markets are forever seeking lucrative new investments to increase their value – and this is destabilising agricultural markets. Prices mushroomed in 2005-8, causing hunger, despite more food being produced than ever before.

Energy and housing markets are also adversely affected.. The number of houses, even in London and the southeast, has grown faster than the household count, but prices continue to rocket – because they are often deliberately intended to be financial assets, rather than affordable homes.

Pettifor proposes to “urgently transform” financialised capitalism. It’s a Keynesian, reformist perspective: it can be done, we are told, because it’s been done before. But can it? The levels of public food storage and energy stockpiling required to counter the inflationary effects of financial speculation seem vast. But both China and India have food storage policies and the US Department of Energy operates an energy reserve. Pettifor wants the UN to lead in these fields, but that look unlikely in a context of chronic underfunding and superpower sidelining.

On housing, the speculative market could be controlled by the state building more affordable stock, imposing rent controls and taxes on property, second homes and buy-to-let.

Tackling international markets directly, Pettifor proposes constraints on capital mobility, but ideas like the Tobin Tax are very modest in the face of the scale of the problem. One thing is clear: Trump’s rage against globalisation is unlikely to go beyond tariffs unless the power of Wall Street is confronted, and there is very little likelihood of that.

Returning to where we started, one giant step would be to move away from the US dollar being the world’s reserve currency. Given the huge advantages this gives to its economy, the US is unlikely to yield on this without a fight – literally. Attempts by Iraq, for example, to stop trading oil in dollars was identified by some analysts as a motive for US military intervention in 2003, although Pettifor doesn’t look at this.

“Government by organised money has become unbearable for human society,” the author said in a recent article in Tribune. But greater regulation of a sector that appears “vast and unstoppable” may not be enough, and hoping that the world will come to its senses in the event of a major catastrophe smacks of desperation. More radical solutions are needed.

“If the cause of all our woes globally is an uncontrolled financial sector, why does Pettifor not call for the public ownership of the banking system in the major economies and the closure of hedge funds and other speculative forms of finance capital?” asked economist Michael Roberts in a recent review. It’s a fair question.

After the complexities of Ann Pettifor’s book, We Need to Tax Billionaires is comparatively straightforward – but still an eye-opener. Economics professor Gabriel Zucman calculated French citizens pay on average 51% of their income in tax, if all forms of tax, including VAT, are considered. For the working class, it’s around 45%, but for billionaires, it’s just 13%.

If France’s billionaires all moved to the Cayman Islands tomorrow, the loss of tax revenue to the country would be insignificant – around 0.03%. And the same is true throughout Europe.

It’s remarkably easy for the super-rich to structure their finances in such a way that their personal income – and income tax bills – are as low as possible. This is easily done via holding companies. At the same time, the easier it is to avoid paying tax, the easier it is to accumulate more wealth.

Targeting holding companies, as the US government has in the past, just leads the filthy rich to seek other loopholes. The answer, says Zucman, is to tax wealth itself. Even a 2% tax on individuals worth over $100 million would, in France, bring in around 20 billion euros a year.

“Billionaires cannot be allowed to live in some parallel society,” concludes Zucman. “With great wealth comes great power.” The fact that Elon Musk’s Tesla company didn’t turn a profit for 17 years until 2020 didn’t stop him acquiring Twitter two years later for $44 billion, allowing him to turn the social network into a platform for a range of ideological causes, including getting Donald Trump re-elected, with all the rewards that that brought him. If wealth confers power, democracy alone requires it be constrained.

Mike Phipps’ book Don’t Stop Thinking About Tomorrow: The Labour Party after Jeremy Corbyn (OR Books, 2022) can be ordered here.

Saturday, June 06, 2026

A Regional Crisis or a Protracted International Disorder?

What began as Israel’s obliteration in Gaza now extends to Lebanon, Iran and the Gulf, thanks to US arms and finance. If diplomacy fails to interrupt this trajectory, the expansive arc of war will transform a regional conflict into a prolonged international disorder.

by | Jun 5, 2026

On May 31, Lebanese Prime Minister Nawaf Salam gave a televised address in which he condemned Israel’s invasion and intensified attacks on southern Lebanon as a dangerous escalation, warning that a “scorched-earth policy” will never bring security to Tel Aviv: “Israel must understand that with its scorched-earth policy, collective punishment, and the bulldozing of villages and towns, it will gain neither security nor stability.”

As Salam said, this process is now advancing. “Israel is practicing mass displacement that amounts to collective punishment. It no longer targets only specific locations or areas, but has adopted a policy of comprehensive destruction of cities, towns, and all aspects of life within them.”

Tactical wins, strategic devastation

Israel’s Obliteration Doctrine is a lethal mix of scorched earth policy, collective punishment and civilian victimization, coupled with massive indiscriminate bombardment and systematic use of artificial intelligence (AI), as I have demonstrated in The Obliteration Doctrine (2025) and The Fall of Israel (2024).

This doctrine often goes hand in hand with ecocide, which Israel has committed in Gaza and is committing in Lebanon. The net effect is ethnic cleansing and, given continued and unhindered escalation, genocidal atrocities.

Whether Prime Minister Netanyahu, former PM Naftali Bennett or former head of the Israeli defense forces Gadi Eisenkot will win the 2026 Israeli legislative election is effectively immaterial. With or without Netanyahu, the Obliteration Doctrine will prevail.

Netanyahu brought to power the most far-right Messianic government in Israeli history. Naftali Bennett is a millionaire politician and the ex-leader of a religious Zionist far-right party. Ironically, the more “moderate” of the three is the ex-military chief Gadi Eisenkot who first tested the Obliteration Doctrine in Dahiya, a Shia enclave in Beirut in 2006.

The greatest threat to Israel’s long-term future is not external enemies alone, but the transformation of military escalation into a permanent governing principle. Once security policy becomes inseparable from territorial expansion, ethnic cleansing and perpetual warfare, the consequences extend far beyond the battlefield.

From Gaza to Lebanon and Iran – and back

The Gaza war has already produced one of the gravest humanitarian crises of the 21st century. Across much of the Global South, public opinion increasingly interprets the destruction of Gaza through the lens of displacement, collective punishment and ethnic cleansing. Understandably, the expansion of military operations into Lebanon has reinforced those perceptions.

This divergence in perception is becoming one of the defining geopolitical fault lines of our era. In the view of the Global South, military realities on the ground continue to outpace diplomacy. The question is no longer whether the conflict will reshape the region, but how extensive that transformation will become.

In The Obliteration Doctrine, my greatest concern was that “what happens in Gaza won’t stay in Gaza.” It is now a lethal blueprint and a broader regional template. Hence, the large-scale destruction of towns, repeated displacement of civilians, and continuing cross-border operations in Lebanon.

The broader U.S.-Israel-Iran confrontation has become increasingly intertwined with the Lebanon-Gaza conflict, with attacks, counter-attacks and continuing tensions around the Strait of Hormuz generating major energy-market disruptions.

The energy crisis connection

The strategic significance of the conflict has increased dramatically because it now intersects directly with the U.S.-Israel-Iran confrontation. Even partial disruptions have triggered sharp increases in oil and gas prices and heightened concerns regarding inflation, growth and supply security.

Since the escalation of regional conflicts stretching from Gaza and Lebanon to the Red Sea and the Persian Gulf, energy markets have become increasingly vulnerable to disruption. Shipping routes, insurance costs, strategic chokepoints and investment decisions have all been affected by growing instability. What began as the devastation of Gaza has evolved into a crisis with potentially global economic consequences.

The Middle East remains the world’s most important energy-producing region. Even when actual supply disruptions remain limited, the risk premium generated by military escalation can significantly increase energy prices. Such increases function as a global tax on growth – as the epicenter of the crisis, Asia is a prime example.

For advanced economies already burdened by high debt levels and slow productivity growth, persistent energy inflation undermines economic recovery. For developing countries dependent on imported energy, the consequences are even more severe. Rising fuel costs translate into higher food prices, greater fiscal deficits and heightened social instability.

The Gaza-Lebanon crisis is therefore not merely a regional conflict. It is part of a wider process linking geopolitical fragmentation, energy insecurity and economic deceleration.

US-Israel connection

Washington remains Israel’s indispensable strategic partner. Military cooperation, intelligence sharing and diplomatic support continue to provide the foundation of Israel’s security architecture. Yet the relationship faces growing contradictions.

American policymakers increasingly confront a centrifugal dilemma. On one hand, they seek to preserve Israel’s military superiority and deterrence capabilities. On the other, they must manage the economic and geopolitical consequences of prolonged regional conflict.

At the same time, these policymakers are challenged by the increasingly vocal Israel lobby, the export exigencies of the US military contractors and the rising opposition of the American electorate, particularly the younger voter cohorts.

Every expansion of the war imposes costs on broader American interests. Energy volatility threatens global growth. Escalation risks confrontation with regional powers. Humanitarian devastation fuels anti-American sentiment across much of the Global South.

So, Washington’s objectives are becoming increasingly complex and self-defeating. It seeks Israeli security without regional war, deterrence without escalation, and strategic dominance without bearing the full economic and political costs of prolonged conflict.

As those goals are proving increasingly difficult to reconcile, Washington is burdened by both Israeli insecurity and a regional war, escalation without deterrence, the full spectrum of costs of the prolonged conflict – and increasing concerns about crumbling strategic dominance in the region.

Expanding arc of war – and risks of miscalculation

The most significant recent development is the gradual fusion of multiple conflicts into a single strategic theater. Gaza, Lebanon, the Red Sea, Syria, Iraq and the Persian Gulf increasingly form interconnected fronts within a broader contest between the U.S.-Israel partnership and Iran’s regional network.

Military actions in one arena now generate repercussions across the others.

This expanding arc of war magnifies the risks of miscalculation. A localized confrontation that might once have remained contained now possesses the potential to trigger regional escalation, energy shocks and wider geopolitical fragmentation.

This is precisely how localized wars become systemic crises.

The Expansive Arc of War

Israel risks validating the warning implicit in both The Fall of Israel and The Obliteration Doctrine: that a state can achieve tactical successes while simultaneously undermining the foundations of its own long-term security and legitimacy.

Every tactical win is setting the stage for further strategic failure, deeper divides internally, and greater international estrangement.

International crisis of credibility

The international response has exposed a growing crisis in global governance. Until the devastation of Gaza, many Western governments emphasized Israel’s security concerns while expressing futile concern about civilian casualties in the Middle East.

Many countries in Asia, Africa and Latin America have a markedly different perspective, focusing on humanitarian suffering, displacement and alleged violations of international law. As these narratives diverge, confidence in international institutions continues to erode.

For much of the Global South, the perception of selective enforcement of international norms has become increasingly difficult to ignore. If international law appears applicable to some states but not others, its legitimacy inevitably suffers. This credibility gap may prove one of the most enduring consequences of the conflict.

The central question is no longer whether the Gaza war has transformed the Middle East. It has. The question is whether the region is moving toward stabilization or toward a broader doctrine of permanent conflict.

If military escalation continues, the consequences will extend far beyond Israel, Lebanon and Gaza. Energy insecurity, economic fragmentation, humanitarian crises and geopolitical polarization will increasingly shape the international system.

The tragedy is that all parties face mounting risks. Lebanon risks further devastation. Gaza faces a reconstruction challenge of historic proportions. The United States risks strategic overstretch. The international community risks institutional irrelevance.

The road ahead

Modern conflicts are no longer judged solely by military outcomes. They are judged by their developmental consequences. A military victory that produces permanent economic devastation can become a strategic defeat.

The tragedy of the current moment is that every actor increasingly perceives escalation as necessary while simultaneously fearing its consequences.

Lebanon risks deeper devastation. Gaza faces prolonged humanitarian catastrophe and uncertain political futures. Iran confronts mounting economic and military pressures. The United States faces growing strategic commitments. Israel confronts rising diplomatic isolation even as it seeks greater security.

In the resulting obliteration dynamic, military escalation progressively destroys the political and economic foundations needed for lasting peace.

In this view, the debate over ethnic cleansing, genocide and obliteration is not merely a legal or moral argument. It is a debate about whether the region can escape a cycle in which every military victory plants the seeds of the next catastrophe – and possibly of an overwhelming global downturn.

The original version was published by the Informed Comment (US) on June 4, 2026.

Dr. Dan Steinbock is an internationally recognized visionary of the multipolar world and the founder of Difference Group. He has served at the India, China and America Institute (US), Shanghai Institutes for International Studies (China) and the EU Center (Singapore). For more, see https://www.differencegroup.net