Dubai Times

Live, Love, Leverage – Ya Habibi!
Sunday, Jan 25, 2026

0:00
0:00

Trump Administration’s Iran Military Buildup and Sanctions Campaign Puts Deterrence Credibility on the Line

As Iran moves to restore internet access after a prolonged blackout, Washington signals it is positioning forces and tightening oil-related sanctions to be ready for rapid retaliation if Tehran escalates.
The core issue is deterrence credibility: whether the Trump administration’s visible military buildup and sanctions pressure can restrain Iran’s next move without triggering a wider regional clash.

This matters now because the U.S. is publicly tying readiness to the risk of Iranian escalation, Iran is issuing warnings that U.S. bases would be targeted, and regional spillovers are already showing up in aviation disruptions and heightened security posture.

What we can confirm is that Vice President J.D. Vance said the U.S. is accumulating forces in the Middle East to ensure resources are available if Iran does “something very foolish,” and he emphasized that President Donald Trump has options he will not disclose.

What we can confirm is that Iran indicated internet service would be restored nationwide within a short window after an extended blackout, and that Iranian commanders issued a message framed as an answer to President Trump “on the ground.” What’s still unclear is the precise trigger threshold that would cause the U.S. to shift from deterrence to direct action, and the accuracy of competing claims about executions and casualty totals: President Trump described preventing a large number of executions, while Iran’s prosecutor rejected a specific execution claim, and multiple actors cite sharply different death toll figures with no single, universally verified baseline.

Mechanism: Deterrence works when one side convinces the other that certain actions will bring swift, painful consequences that outweigh any expected benefit.

The U.S. builds deterrence by moving ships, air defenses, and personnel into position, by signaling political will through public statements, and by squeezing resources through sanctions.

Iran counters by signaling that escalation would impose costs on U.S. forces and partners in the region, and by shaping domestic control through information restriction and internal security measures.

Unit economics: The U.S. cost curve rises with deployed assets, readiness tempo, air defense coverage, and sustained maritime presence; those costs scale with time and operational intensity, not with public messaging.

Iran’s revenue vulnerability rises with enforcement against oil transport networks and intermediary entities; pressure scales with how effectively sanctions restrict flows and financing.

Both sides face a margins problem: the U.S. wants maximum deterrence per deployed dollar and minimal escalation risk, while Iran wants maximum strategic effect per constrained resource, using asymmetric threats that are cheaper than matching U.S. conventional power.

Stakeholder leverage: Washington holds leverage through force projection, sanctions reach, and the ability to reassure or coordinate with regional partners who host bases and rely on U.S. security guarantees.

Iran holds leverage through its ability to create regional risk that raises insurance, aviation disruption, and force protection burdens, and through the threat set it can direct at nearby U.S. facilities.

Regional states and host nations hold practical leverage because basing access, overflight permissions, and political tolerance for prolonged crisis conditions can widen or narrow U.S. operational options.

Competitive dynamics: Competitive pressure forces both capitals into tight trade-offs.

The U.S. must show credibility without being pulled into open-ended conflict, because adversaries and partners both read hesitation as weakness and overreach as recklessness.

Iran must balance domestic control, regime stability, and external signaling; overreaction invites heavier pressure, while underreaction risks appearing deterred and emboldening rivals.

Each side is attempting to shape the other’s decision calculus faster than events on the ground can outrun command and control.

Scenarios: Base case: the U.S. maintains elevated posture and selective economic pressure while Iran avoids actions that cross Washington’s stated red lines; early indicators include continued force positioning paired with restrained public thresholds and gradual restoration of communications inside Iran.

Bull case: deterrence holds and the crisis cools into a contained standoff; triggers include sustained Iranian avoidance of high-visibility escalations and measurable reduction in execution-related fears, with fewer transportation and aviation disruptions.

Bear case: a sharp incident forces rapid retaliation and turns signaling into kinetic exchange; triggers include credible evidence of mass executions, attacks or attempted attacks on U.S. forces or facilities, or a sequence of tit-for-tat moves that compress decision time and raise miscalculation risk.

What to watch:
- Whether U.S. officials restate or narrow the conditions that would trigger direct action tied to executions.

- Whether Iran completes nationwide internet restoration on the timeline described.

- Any public confirmation that Iranian commanders’ “on the ground” message is followed by operational steps.

- Additional U.S. sanctions designations tied to oil transport networks and enabling companies.

- Observable changes in commercial aviation patterns involving Israel, Riyadh, Dubai, and nearby routes.

- Further announcements about U.S. air defense deployments or posture changes in the region.

- Any shift in Iranian rhetoric from deterrent warnings to specific operational threats against bases.

- Whether regional host nations request, limit, or expand defensive deployments.

- Signs of de-escalatory backchannels reflected in softened public language from either side.

- A sustained divergence between official Iranian casualty claims and activist or external estimates without new verifiable baselines.

Deterrence is a discipline, not a slogan: it works when threats are credible, limited, and backed by capability, and it fails when red lines are fuzzy or incentives push both sides toward tests of resolve.

The Trump administration’s approach is signaling readiness while preserving choice; Iran’s approach is signaling pain while preserving ambiguity.

The next moves will reveal which side is better at controlling escalation under pressure.
Newsletter

Related Articles

0:00
0:00
Close
Gold Jumps More Than 8% in a Week as the Dollar Slides Amid Greenland Tariff Dispute
Boston Dynamics Atlas humanoid robot and LG CLOiD home robot: the platform lock-in fight to control Physical AI
United States under President Donald Trump completes withdrawal from the World Health Organization: health sovereignty versus global outbreak early-warning access
Trump Administration’s Iran Military Buildup and Sanctions Campaign Puts Deterrence Credibility on the Line
Tech Brief: AI Compute, Chips, and Platform Power Moves Driving Today’s Market Narrative
NATO’s Stress Test Under Trump: Alliance Credibility, Burden-Sharing, and the Fight Over Strategic Territory
Greenland, Gaza, and Global Leverage: Today’s 10 Power Stories Shaping Markets and Security
America’s Venezuela Oil Grip Meets China’s Demand: Market Power, Legal Shockwaves, and the New Rules of Energy Leverage
Trump’s Board of Peace: Breakthrough Diplomacy or a Hostile Takeover of Global Order?
Trump’s Board of Peace: Breakthrough Diplomacy or a Hostile Takeover of Global Order?
Trump’s Board of Peace: Breakthrough Diplomacy or a Hostile Takeover of Global Order?
Cybercrime, Inc.: When Crime Becomes an Economy. How the World Accidentally Built a Twenty-Trillion-Dollar Criminal Economy
Strategic Restraint, Credible Force, and the Discipline of Power
There is no sovereign immunity for poisoning millions with drugs.
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
President Trump Says United States Will Administer Venezuela Until a Secure Leadership Transition
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
White House Says Trump Is ‘Sick of Meetings’ as Ukraine Peace Talks Stall
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
Musk, Barra and Ford Join Trump in Lavish White House Dinner for Saudi Crown Prince
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
AI Researchers Claim Human-Level General Intelligence Is Already Here
Dick Cheney, Former U.S. Vice President, Dies at 84
Israeli Energy Minister Delays $35 Billion Gas Export Agreement with Egypt
Saudi Arabia Unveils Vision for First-Ever "Sky Stadium" Suspended Over Desert Floor
Francis Ford Coppola Auctions Luxury Watches After Self-Financed Film Flop
United States and China Begin Constructive Trade Negotiations Ahead of Trump–Xi Summit
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
EU Deploys New Biometric Entry/Exit System: What Non-EU Travelers Must Know
Ex-Microsoft Engineer Confirms Famous Windows XP Key Was Leaked Corporate License, Not a Hack
Israel and Hamas Agree to First Phase of Trump-Brokered Gaza Truce, Hostages to Be Freed
The Davos Set in Decline: Why the World Economic Forum’s Power Must Be Challenged
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
Nvidia and Abu Dhabi’s TII Launch First AI-&-Robotics Lab in the Middle East
New Eye Drops Show Promise in Replacing Reading Glasses for Presbyopia
Dubai Property Boom Shows Strain as Flippers Get Buyer’s Remorse
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
×