Critical dollar dominance, according to economist Michael Hudson, is the driving force behind the recent US-Israel attack on Iran, which he views as the opening salvo of World War III. Speaking on Naked Capitalism and Dialogue Works, Hudson argues that this conflict is less about Iran’s nuclear program and more about a long-standing US foreign policy objective to maintain unipolar global control, particularly over the Middle East’s vital oil resources.
Michael Hudson, a distinguished research professor of Economics at the University of Missouri, Kansas City, and President of the Institute for the Study of Long-Term Economic Trends, is a leading voice on global political economy and US foreign policy. His insights, discussed with Robinson Erhardt of Stanford University, paint a stark picture of geopolitical motivations. Hudson posits that the “US-Israel war with Iran” represents a pivotal moment in American foreign policy, designed to prevent nations like Iran, a key BRICS member, and other Global South countries from de-dollarizing and seeking economic alternatives.
The Geopolitical Chessboard: Oil, BRICS, and the Belt and Road
Hudson’s analysis extends beyond immediate military action, linking the conflict to the control of West Asia’s vast oil and gas reserves. He also highlights its potential to disrupt China’s ambitious Belt and Road Initiative, where Iran serves as a crucial railway link to the West. The economist points to historical precedents, noting how the US has leveraged its financial might, including seizing Iranian assets, to exert control. He further claims that US “aid” often translates into lucrative contracts for private military contractors, fueling the military-industrial complex.
“The underlying reason for the conflict is the US empire’s plan for global domination and its attempt to impose a unipolar order.”
The timeline of events underpinning Hudson’s assertions is critical. While the Naked Capitalism article discussing his views is dated March 21, 2026, Hudson specifically refers to a “Saturday’s February 28 attack on Iran” as the “true trigger of World War III.” Discussions with Richard Wolff on Dialogue Works on March 12, 2026, further explored the implications of this US-Israel attack. Hudson unequivocally stated on March 4, 2026, that the US attack had “far-reaching worldwide economic and political consequences” and could be deemed the “official start of World War III.”
Critical Dollar Dominance and the De-Dollarization Threat
The core of Hudson’s argument revolves around related Finance news and the existential threat that de-dollarization poses to US hegemony. He cites the US seizure of $300 billion of Russia’s monetary savings in 2022 as a stark example of how the US treats foreign investments as “hostages,” a tactic designed to deter any move away from the dollar. The economist suggests that even prior negotiations in Oman, where Iran reportedly made “unprecedented agreements to surrender to the American position to avoid war,” were ultimately disregarded to pursue this broader objective of maintaining critical dollar dominance.
A Strategy of Global Domination
Hudson contends that the US and Israel could not accept a peaceful resolution with Iran because it would have undermined the long-term US strategy to control Middle Eastern oil and utilize Israel and proxy groups like al-Qaeda/ISIS to block independent oil-producing nations. This unipolar vision, he argues, views any nation seeking economic sovereignty as a threat, ultimately benefiting the US military-industrial complex through continuous contracts. The conflict, therefore, is a manifestation of an enduring plan for global domination, ensuring that the US remains at the apex of the international financial order.
