Economic Weapons of Mass Destruction

Iran has them. They can do more damage than al-Qaeda could dream of. Jack D. Douglas explains.
Iran’s Eco-Nukes

The President of Iran has proclaimed repeatedly that any attack by the U.S. and Israel (which are now seen largely as one by the Muslim World) would lead to full-scale Iranian resistance. Like any intelligent strategist, he does not spell out what counterattacks they would make, but he states calmly and strongly that Iran has all the power needed to resist any attacks or invasion. Anyone who carefully considers the many "powers" that Iran has to counter-attack can see that they have many powerful economic and military weapons that could have as much destructive power as nuclear weapons. In fact, their economic weapons are immensely more powerful than any weapons of mass destruction they might be able to develop and deliver, and the economic weapons would not necessarily have great blowback effects on Iran, as nuclear weapons would.

Although they could simply lob a few missiles into some of the neighbors who are American "allies" and oil producers but it doesn't even have to do that to create economic terror.

They do not even have to attack these other Muslim states. They can declare a U.N.-sanctioned defensive war against the attackers, in accord with all U.N. and other treaties, call on the U.N. to support their legal, defensive war, then declare a wartime emergency allowing them to legally shut down their coastal waters to all attackers and their allies. They can then shut down the Strait of Hormuz, which at its narrowest point is only 35 miles wide, so old-fashioned missiles, Exocets, or whatever can knock out any oil super-tankers trying to run their wartime economic blockade. The first super-tanker to go up in flames will lead immediately to prohibitive insurance rates for the entire War Zone, which will send oil prices sky high. They can also mine the Strait, attack it with low-flying planes and fast, small boats, and clog it with flammable gas and oil. They can also attack shipping at any point along their long coast with the Gulf.

They do no even have to take these measures. If for any reason (see below) they cannot do so or choose not to do so, an attack on them will lead to a shutdown of their vast oil and gas exports to the global economy (but probably not to their ally, China). This would have roughly the same effect as knocking out Ras Tanura. Energy prices would sky-rocket immediately worldwide.

If for any reason the Japanese economy plunges because of high energy costs, it might have to sell its $800 billion in U.S. dollar reserves, mainly U.S. bonds. That would send U.S. rates sky-high. Ditto for China with its $800 billion in dollar reserves and many other nations with lesser amounts – Korea, Taiwan, also totally dependent on imported oil and gas.

The US is aware of this so I guess we may be about to find out how suicidally crazy the Bush administration is.