by Jeff Brown for The Saker blog
Pictured above, the currency symbols for the old Spanish peseta and the Chinese yuan. Maybe Baba Beijing can synthesize the two of them into a cooling looking petro-yuan logo.
After 25 years of dreams, planning, rumors and testing, the Chinese petro-yuan is now official. Right now, almost all global oil trade is conducted in US dollars, using two benchmark varieties of crude, West Texas Intermediate and North Sea Brent, as the industry standards. It is no accident that these two benchmarks are based on imperial crude, American and British, and the irony of this is surely not lost on Baba Beijing (China’s leadership).
China is not selling oil, so the petro-yuan is a futures purchase contract denominated in renminbi for the country to import the stuff. As the world’s biggest importer of hydrocarbons, Baba Beijing has long felt that pricing all its millions of tons of imports should be in its national currency. Why should China pay for Russian natural gas or Venezuelan crude in Western empire’s currency of global financial control, Uncle Sam’s greenback?
Opinions outside China range from being non-plussed, to claiming it is the most important news in modern financial history, but you would have to search far and wide in Eurangloland (NATO, EU, Israel, Australia and New Zealand) and its heavily censored and suppressed media, to see for yourself. Outside the obligatory statement of fact in financial outlets like the Wall Street Journal, Financial Times, Reuters and Bloomberg, silence from the West’s mainstream media is deafening, as this screenshot below shows, when searching the topic. Only one mainstream article showed up on page #1 of the web search and that was CNBC from 2017. Even just looking for “petro-yuan” gives identical results. It’s a Western media black hole.
The West’s censorship and suppression of news that reports the truth about China, Russia and Iran is lethally effective. Hitler called it the Big Lie. Eurangloland learned from a master.
Both end points on the above range of ideas are probably exaggerated. But, the fact that any global oil seller can now buy non-US dollar oil contracts is momentous, for sure. In 1971, Richard Nixon took the US dollar off the gold standard and got OPEC to restrict global hydrocarbon sales to greenbacks. Thus, overnight, the world’s reserve currency was pure fiat money, which is still being kept propped up by the need for the world economy to buy dollars, in order to purchase the most strategic commodity on earth. Here are two ranges of opinion on Nixon’s decision (https://www.forbes.com/sites/charleskadlec/2011/08/15/nixons-colossal-monetary-error-the-verdict-40-years-later/#70abb60669f7 and http://mentalfloss.com/article/12715/why-did-us-abandon-gold-standard).
Many people don’t want to acknowledge that their decision to switch from the US dollar to the euro, by Iraq’s Saddam Hussein and Libya’s Muammar Gaddafi, had a lot to do with their countries being invaded, plundered, destroyed, and then they being killed in a highly humiliating and public fashion (http://chinarising.puntopress.com/2017/08/28/why-dprk-will-n-e-v-e-r-stop-its-nuclear-arms-program-china-rising-radio-sinoland-170828/). In both cases, once they made the switch, it was just months before they were sacked.
Other, more powerful oil producers have already ditched the greenback, but Western empire only knows how to prey on weaker states, like Grenada, Panama, Serbia, Africa and the like. Iran has already stopped using the US dollar (https://www.cbsnews.com/news/iran-ends-oil-transactions-in-us-dollars/), as has Russia with China (https://www.ft.com/content/8e88d464-0870-11e5-85de-00144feabdc0), which helps explain the West’s vociferous, self-defeating illegal sanctions and embargos on them.
Both Iran and Russia make Uncle Sam brown the backside of his red-white-and-blue bloomers, as well as for the Zionist state of Israel. I don’t even have to mention Eurangloland’s white knuckle fear of China. The China-Russia-Iran anti-dollar alliance versus the West is causing the latter’s elites to suffer from extreme geopolitical dysentery. Vulnerable, and it has to be said gullible Iraq and Libya, yes – but this towering trio not so much, as they are two of the world’s biggest petro-exporters next door to the biggest importer, and all are armed to the teeth with high-tech military hardware. When you look at the map below, it graphically shows how ridiculous it is for these three players to do business in dollars. New York and Washington are so far, far away.
Whatcha gonna do about it, Eurangloland? There’s not a damn this you can do, short of destroying humanity a world. Sadly, there are many psychopaths in Washington, Brussels, London and Paris who would prefer that, than accept imperial collapse.
As usual, you have to go outside the Great Western Firewall and its propaganda Big Lie, to see the real world. For those who want to delve deeper, RT has done an informative series of articles and the South China Morning Post (SCMP) has done a couple of good ones.
Yes, China has introduced the petro-yuan, as forecast by private analysts. However, both Russia and China are also preparing to introduce gold backed rubles and yuans. Both have been accumulating gold for years. Russia has been mining it’s own gold, as well as buying up available gold on the world markets, using profits from oil and gas. China, too, has been buying up available gold on world markets. When will the gold backed rubles and yuans be introduced ? According to analysts, when Russia and China buy up as much gold as they can on world markets. This is not good news for the dollar and the euro.
The Western media has given some publicity to the petro-yuan, stating that the petro-dollar wont go away overnight, which is true. However, how long can it last ? Who wants to use fiat currencies like the dollar and the euro, printed backed by nothing ?
Only the vassal states, which are under the boot (saying military is not everything, have you ever seen Wehrmacht’s boots? With metal nails on the soles, so they could last longer?) Those.
Currencies can be exchanged. If the Sauds sell oil in dollars, they can exchange those dollars for yuan. Or if the Sauds sell oil in yuan, they can exchange those yuan for dollars. So the selling part is a non-issue.
Reserve status is a mixed bag. The dollar as a reserve currency generates a lot of business for Wall Street, however it is a negative for Main Street, because it makes American goods less competitive on the global market.
The Canadian dollar is not a reserve currency, but life goes on in Canada. The Australian dollar is not a reserve currency, but life goes on in Australia. If the some other system replaces the American dollar as the reserve currency, life will go on in America — though there will be winners and losers.
The problem being, that if you trade in another currency, and then has to convert to $$$ and back, the $$$ is an unneeded middle part (the point where $$$ gains ‘value’) – if you can get $$$ out of the equation, the U$ will not gain from the proceeds, thereby undermining the fiat-currency!
Country A converts its currency to USD to buy oil.
— a large conversion will raise the conversion rate between USD and CA (country’s A’s currency ), in favor of the USD as demand for USD increases.
Country B receives the USD in exchange for the oil.
If Country B doesn’t want to hold onto USD, they immediately convert to their currency. (CB).
— Demand for CB goes up and the USD temporarily used in the transaction now go back to the supply side of the market for USD.
Overall, there are the same amount of USD on the market as there was at the beginning. CA vs USD has gone down in value, and CB vs USD has gone up in value. But USD is basically the same as there is the same amount of USD on the market as before this temporary transaction.
What makes USD a reserve currency is that people seem to want to hang on to USD. That’s a measure of trust and how acceptable and useable is the currency. You don’t want to keep your wealth in a currency that the rest of the world is dumping and thus is going down in value. Its also handier if the currency you keep your wealth in is readily accepted, although with today’s markets and easy money changing that’s less of an issue.
So, these days its a matter for markets and trust. If for example, its one of the recent times when the Euro is falling in value and there are worries about it breaking up, then you don’t want to store your money in Euro’s. If you want to buy some French wine or German machinery, you can always convert to Euro’s to do so. But if everyone is fleeing Euro’s, then the value is dropping so you don’t want to get up every morning and find out what percent of your wealth you lost overnite due to the drop in value of either Euro notes stored in a vault, or computer Euro credits in a bank account or because you bought a stock or a bond valued in Euros.
That’s what makes a currency a ‘reserve’ currency. Do you want to keep your wealth in that currency?
For the oil markets, the important part was not that the sale is priced in USD. Its that the country selling the oil likes to keep its money in USD notes and investments.
Which bring us around to the original meaning of the term “petro-dollar”. At the time of the rise of OPEC, the US government and financial leaders did everything they coulld to get the USD that were flowing out for oil purchases to remain in USD and preferably to be returned to the US and spent of invested there. With the rise of OPEC, the US started to run trade deficits for the first time. And that would have brought down the value of the USD if the oil sheiks had instead decided they really liked German Marks or something. But the US made a very deliberate effort that this didn’t happen. That’s what people started to describe as petro-dollars. It was the USD coming back to the US or at least staying as USD’s somewhere.
Now, petro-dollar has been redefined by many writers who don’t seem to know what it originally meant. And now a new term has been made up, petro-yaun, mostly by more writers who didn’t know what the original term meant.
The important part is what happens to the money after the oil sale is complete. If the Saudis or other oil sheiks want to convert the money to USD as soon as they get their Yuan’s, then its basically the same as before. But, if the Chinese can convince them to invest in China and that having Yuan in their vaults is a good, stable thing so they should keep their money in yuan, then you’re back to the original definition of the term but now applied to “Petro-Yuan.” If that occurs, then that’s what is important. So, watch the level of Saudi investment in China (or in Belt-Road projects with China) as a sign that they might be wanting to keep their wealth in Yuans.
The key is where the money goes after the transaction.
If you want to understand how the governments are really run, discard all the brainwashing concepts droned by the ziomedia and start watching more suitable sources, like… The Sopranos!
Yep. Since the masonic putsches against everywhere (first France, soon my country: Latinoamérica, and later Russia), the so-called “governments” are in reality zioplantations and the ruling positions are staffed with loyal Freemasons or directly with Khazarians.
First, let’s suppose that the Dollars are always printed instead of being just numbers in a digital network, and let’s suppose that there is actually a negotiation instead of “business as usual”. So an informal (but unfortunately precise) depiction of how the Dollar works is:
1) The USSA wants to buy up the coffee produced by a vassal region in Latinoamérica, let’s say: Colonia
2) The “oligarchy” in Colonia is mainly composed of Freemasons whose lodges are satellites of the main lodges located in the Anglozionist centers. So the masonic functionaries in Colonia are informed of the interest by the USSA to buy up all the coffee production. As this transaction is big, only the big masonic honchos will carry out the transaction
3) The exchange rate of the Dollar to/from pesos is controlled by the Anglozionists, and the price of coffee is also coerced by “the market”, which is in reality distorted and controlled by ziocompanies. So the USSA establishes the ripoff price
4) The zioboss in the USSA asks the Freemason in Colonia to “sell” the production. The Freemason in Colonia says yes and the transaction is established. The oligarchs in Colonia receive their cut as direct bribes or/and as perks. The ziocontrollers of the USSA economy print as much Dollars as needed.
5) Let’s suppose that the Anglo ziohonchos encounter a honest functionary in Colonia. Then the ziohonchos deal with him in the following way:
a) They all know that the Dollar is a scam. So the functionary is offered a bribe
b) The functionary accepts the bribe. But he/her is wary of having those billions of fiat dollars with no real support. The zios respond that they already bribed and/or threatened every other country into accepting this unjust money
c) Let’s suppose that the functionary does not comply with the ripoff. So the ziohonchos will threaten to harm or kill him/her or his/her family. They already have plenty of alphabet agents infiltrated there from the usual zioagencies.
d) Let’s suppose that the functionary can even resist this level of pressure. So the zios deliver a color revolution (Georgia), or a war by attrition (Syria, Venecita), or a parliamentary coup (Brasil) or a full invasion (Libya, Iraq).
By the way, 2 more facts:
* Dollar is a word that actually means: slavery !!!
* The “hardcore” mafia is actually: Khazarian, and not: “Colonian”, or “Mexica”, or “Russkii”, or “Italic”.
Really? You would like to think so, but no. In addition to what Ivan G. says, look at it this way. Today, the US/London money man manipulate the US$ value, so it’s always at the top. If your Canadian loonie today sells for say $0.8US. Today the US$ is fictitiously manipulated to represent say $1600US/oz of gold, but USofA does not have any gold to cover the $40trillionUS of printed paper, suddenly USofA is hit with reality and it drops to $10,000,000US/oz gold. Work the rest of it out. This is why, now we are hearing about another cheater Internal-$US. How is this going to work if Yuan will be controlled by Shanghai and not NY or London, and you have to pay $1,000,000 for a T-shirt you buy today for $5 at Walmart. Remember, Tramp can say he wants about making an America great again, but you tell me how is he going to do it? Nothing is made in America anymore, so anything you need you have buy at Yuan/gold price.
Small addition. In my teenage days, I used to collect old money, paper or otherwise. I should still have Russian Piat Rubley (5 Ruble) Note from 1905. I also kept 2,000,000 German Mark Note from 1933. Not to long ago Italian Lira was valued at 600 Lira/dollar. Do you really think that it’s impossible for US$ drop to the point where you are going to need $10,000 to buy loaf of bread? Germans did it, Poland did it, so can the West. Except the countries that hold real money: Real Gold (99.999% 1kg gold brick) not the paper gold certificate. Those will be the Russia and China. In the ’60’s British pound used to be $2.70US. How much is it today (what happened to British gold?)?
> “the currency symbols for the old Spanish peseta and the Chinese yuan. Maybe Baba Beijing can synthesize the two of them into a cooling looking petro-yuan logo”
.. the yuan symbol, by fortuitous circumstance, is also the greek letter “pi” .. so no Spanish peseta symbol needed.
Sure it is a nice part of China joining the world markets for everything, and useful for Chinese domestic customers. But if you want to stop the US dollar being the thing everyone trades in, you have to offer alternatives in liquid low risk assets that people/crooks/National banks etc. can put their spare cash in.
China holds over $1 trillion of US Treasuries, so does Japan. That is the market that matters, not all the oil in China.
Running a trade surplus doesn’t help either. Unless the massive surplus turns to massive deficits I would imagine China would have to grow to 3 times the size of the dollar for Yuan assets to be a comparable alternative to dollar assets.
Many people don’t want to acknowledge that their decision to switch from the US dollar to the euro, by Iraq’s Saddam Hussein and Libya’s Muammar Gaddafi, had a lot to do with their countries being invaded, plundered, destroyed, and then they being killed in a highly humiliating and public fashion
Removed – no attacking the author. Mod
“Eurangloland’s white knuckle fear of China. ”
The first nation to sign an FTA with China in modern times was . . . . ?
“Eurangloland (NATO, EU, Israel, Australia and New Zealand) ”
One of the aforementioned?
Do I win?
My guess was for the USA under Bill Clinton. :)
Memories are kinda hazy, but I think the term was “Most Favorite Nation” status.
I think I remember it because in the ’92 campaign Clinton attack Bush the Elder for not being tougher on China after the Tieneman (sic) Square uprising. The of course, Clinton completely changed directioon after he got into power and started negotiating favorable trade deals with China. An example of how US elections are a meaningless charade, since both candidates are almost certainly lying about anything and everything and nothing is a firm promise.
I will say that it was New Zealand. What made NZ do that?
I dont see any rational solutions to the current circumstances.
It seems the empire is heading for a hot war.
Trump Threatens Putin, “Animal Assad” Over Syrian “Chemical Attack”; Russia Warns Of “Grave” Response If US Launches Strike
“Events Today Could Lead To The Last War In The History Of Mankind”, Veteran Putin General Warns
Happy Easter , XB
Do you think those reading your headline realize all fiat currency systems are anti-human and so anti USD means anti US people?
It is not the unjust power of the US we must concern ourselves with but the unjust power of the transnational zionist elite — the oligarchs, including the Chinese branch, who together make war as a class on the rest of humanity?
So much panacea about the petro yuan from the likes of this author, Pepe Escobar, et al, makes it appear as though someone doesn’t want you think about what is actually occurring as the bankers of the planet steal everything that isn’t tied down. Hmmm?
I guess they’ll need a really Big Bang to pull this heist off.
Ladies and gentlemen, you have no friends in the psych warfare battlespace. None whatsoever and you never will because the purpose of media — all media, is to lie you into submission.
Fiat is modern day slavery for all.
Slaveholders used to make around 5% net profit,central banks charge a little more to create money from
“all fiat currency systems are anti-human”
Why? It may be that the DOLLAR system has been anti-human, but that may not have anything to do with the fact that it is a fiat currency. It may (very likely does) have more to do with the fact that dollar strength has been used for endless corporate welfare in various forms, military keynesianism and adventurism, wall street bailouts, etc., etc. The dollar has been used by nasty people for nasty ends; this does not necessarily impugn the idea of fiat currency.
Study MMT — Modern Monetary Theory — and associated ideas: sovereign money, monetary reform, public banking. Also, related: job guarantee.
A couple recent pop items:
The Rock-Star Appeal of Modern Monetary Theory
The Sanders generation and a new economic idea.
By Atossa Araxia Abrahamian MAY 8, 2017
“MMT…describes the way that money works in a way that an 8-year-old can grasp more readily than a PhD, which in itself is unnerving. ‘The contribution of MMT is not the discovery of new facts,’ Galbraith says. ‘It’s a teaching core of things which are factually uncontroversial.’ But its implications can be radically humane. What’s threatening to the establishment, Galbraith adds, ‘is that the narrative is very compelling.'”
Actually the magic money tree does exist, according to modern monetary theory
As the political climate turns against the acceptance of austerity, a new book argues it is time to reject the hegemony of neoliberalism
Youssef El-Gingihy @ElGingihy
Sunday 5 November 2017
Blogs and sites:
— What is Modern Monetary Theory, or “MMT”?
The Seven Deadly Innocent Frauds of Economic Policy
Dispelling Common Folktales of Government Spending, Taxation
and Deficits — How Modern Money Works
— Modern Money Theory: The Basics
— MMT Primer
— MMT History and Overview
http://neweconomicperspectives.org/mmt-scholarship — MMT
Thank you, Jeff J. and Saker. And thanks also to a few commenters who strive to explain to me, a total financial ignoramus, how these “currency things” work. I am grateful to you all.
Just a few quick points, as I believe it’s important to get the history straight, lest we be forced to repeat it:
– “Greenback” is incorrect nickname for the US dollar these days. The real Greenback came about during the American war of independence, by Washington, I believe. To finance the war, European banks requested large interest payments so he simply created the collonial currency which bore no interest. It was issued by the Treasury without incurring immediate debt, and without issuing bonds like these days. Modern money creation is explained well in “Zeitgeist” series of movies, and “The four horsemen”, among others. Some historians argue that this was a major cause of the war and not the Boston tea party or anything else.
– Anglo-American Empire didn’t learn propaganda from Hitler, but the other way around. Hitler himself admired the British propaganda from WW1 and vowed that his propaganda will be better. He says it himself in “Mein Kampf”. In the meantime, Edward Bernays showed up and the rest is history.
– The “petro-dollar” came about as a way to recycle US trade deficits. The Saudis agreed to price the oil only in dollars, and in return the US agreed to provide the protection not to the country but to the ruling house of Saud. Saudis also agreed to recycle their dollars through US banks. That’s how they rule the world.
– Iraq did start selling oil for Euros shortly before the US invasion, and it may have been the actual cause of it. Gadaffi was also doing the same, plus selling oil for gold, and he also had a plan for a pan-African currency backed by gold that would financially unite the whole of north Africa and eventually the whole continent.
I haven’t the time to research this answer carefully, but I believe i have a basic grasp:
I won’t quibble with your last 3 paragraphs. Sounds right to me. Since the assassination of McKinley, we became an Anglo-feely-feely (fascist ) nation until FDR garnered enough popular support to back Wall Street and London (Hitler’s backers) down somewhat succesfully..
However (first paragraph quibble):
The Greenback was Lincoln’s.
The Continental was Washington’s, but he only ran the military campaign of a bunch of rebellious colonies…NOT their finances…..he wasn’t yet president of a nation. Rather, in the 1770s and 1780s Franklin (lining the French up for financial and military support, from his post in Paris and especially Robert Morris on the western side of the Atlantic ……….raising funds on the home front….aided by a bunch of others, including Russia, comprising the League of Armed Neutrality refusing to do a thing to help Britain put down the revolt…….improvised things with a “Continental” currency..
“Not worth a Continental” reflected the depreciation of that fiat currency during the armed struggle and towards its victorious end, when all kinds of different local (state) fiat and bank notes and local scrip competed in a confusing mess, as things degenerated into a decentralized “every man” (state) for itself trying to keep the economy going and shirk as much of their share of the war debt as possible.
Alexander Hamilton straightened the mess out and made the debt good by Federal Authority that gave confidence not only that the various short term state debts that were unviable would be viable if assumed as longer term (15-20 years) Federal obligations…….but that ALSO instilled enough confidence that someone over here knew what the hell they were doing….such that even NEW credit was extended for internal improvements in the shorter term.
And, because there was loads of “upside potential” and competent leadership, especially by Washington’s right hand man, aide de camp during the war and First Treasury Secretary after the war, Alexander Hamilton……It worked.
Same principles could work today except that that late eighteenth century debt was payable under the right circumstances of restructuring, whereas today there is a lot of unpayable debt that has to be foreclosed, written off. That’s what you do with illegitimate debt, unless you’re brainwashed that the scoundrels that made it up are so badly needed, that they have to be paid first. (NOT.)
What’s most significant today is that our biggest creditor, China, is willing to help bring their dollars back here and put them into infrastructure investments in the USA……instead of letting a few trillion USD in their US treasury bonds turn to toilet paper. And we are getting belligerent about it, on British (Empire) orders.Sad!
And most absurd.
Some vague hope remains that Trump sees all this and is leading the war mongers on, giving them enough rope to hang themselves.
Considerable anxiety persists that instead of a smart, peaceful deal that forecloses the Empire and restores a Republic (“If you can keep it.” has obviously become a quite dicey proposition!) he’ll get stampeded into aggression that will ruin everything. But it’s not all on him, one way or another. It’s also on the aggregate sense or senselessness of the electorate. Which ALSO has considerable room for improvement…..
I don’t want to downplay this, because it may well be the first big move that weans the world off of dollars at long last. And certainly, that is the most expedient way to end the empire.
But I am more confident tat there will be a soft landing for the dollar based on the ascendance of SDRs. The financial world is already setting itself up for that. The Zionists, whatever else we may think of them, are not stupid, and I don’t think they’re buying yuan right now to cash in on this new trade.
Look to the smart money right now. It is starting to disinvest from stocks and, true enough, that money isn’t flowing into treasuries at the moment-but neither is it flowing to gold, crypto, or yuan either. Right now, it looks like there is a huge pile of cash on the sidelines waiting, with a significant chunk buying up prime ag land as fast as it can…and a smaller amount going into real estate and collectibles.
I would expect that the petro yuan represents one of many deaths by a thousand cuts for the dollar. Time will tell.
Hitler called it the Big Lie. Eurangloland learned from a master
Didn’t “the Big Lie” refer to British 1914-18 war propaganda
Yes, British war propaganda was an example of the Big Lie, propagated by the master of the Big Lie, the International Jew.
Post-WWII propaganda has been so thorough that even the mentioning of the Big Lie by Hitler and Goebbels has been twisted to suggest they were talking about themselves, when the reality is they were talking about International Jewry.
USDollar as reserve currency gives a huge advantage to the US in international trade and also exporting countries fund the unending wars waged by the US.
USDollar as reserve currency naturally leads to huge trade deficit as the US can just issue USD to “‘pay ” for imports without giving up goods and resources in exchange. In this sense, the US has been freeloading and scrounging of the backs of countries like China and Germany. And as C Powell said, the exporting countries recycle the USD back to US by purchasing US securities and supplying the US with liquidity to finance cheaply, the next round of imports. All this is summarized in the ” Triffin Dilemma ” but so called economists like Navarro and the politicians do not discuss this.
The USD as reserve currency makes it very easy for the US to spend freely and painlessly leading to an excess of spending/investment over savings. A symptom of this is the unending wars which the US inflicts on others. This excess is the trade deficit. This equation is an economic law. The other symptom is the missing USD 21 trillion missing from the Federal Budget which is a result of a systemic and chronic breakdown in spending/accounting controls at the federal level. Catherine Austin Fitts reported on this. This breakdown in controls is a threat to national security but the politicians and the ” experts ” do not discuss this but prefer to blame other countries like China for the economic problems self-generated by the US system.
The economist named R Wolff explained that Trump and other politicians are blaming foreigners for the US’s self generated problems to distract from real fundamental issues.
The US wants its cake and eat it too. It is a greedy monster. As the US ” experts ” would say: ” It is our dollar but it is your problem. “
Drop in Iranian Currency 2018
Iran also needs to decouple it’s currency from dollar.
The current sudden dramatic drop in Iranian currency versus the dollar is probably due to active intervention by Saudi Arabia and US, under the rule of General PlayStation Muhammad Bin Salman and Trump, dumping Iranian currency and shorting the market, the same way that Soros did against the Pound.
Muhatir Muhammad addressed a similar run in Malaysian currency more than a decade and a half ago, by going against the IMF & World Bank recommendations. He blocked the access to Malaysian market to the Western economies.
The solution is to completely block any purchase of non-essential goods from ALL Western countries, including the Europeans, where lots of US companies are stack holders anyway. Iran does not need Gucci, Mercedes not Levi’s jeans.
It is time to drive up the cost for the aggressors in the Middle-East. This can be done through minimal investment by Iran, through coordination with regional countries by embargoing ISAF in Afghanistan & US occupation forces in Northern Iraq and Syria.
Just block the oil product sales through Iranian border to ISAF in Afghanistan and coordinate with Russia and Pakistan (Trump was putting pressure in them, they can have their payback time now) and tax essential goods that are meant for Kurdistan heavily.
Blockage does not have to be physical entirely. Anyone purchasing fuel in Afghanistan from Iran, Pakistan and Russia, has to pay a premium. Essential goods export to Kurdistan should be heavily tarriffed by Iran, Iraq and Turkey as they have a common enemy.
In order to avoid causing suffering for the regular Afghans & Kurds, that premium should be directly reinjected in local currency back in the the local economy. By providing subsidies to local population via their local mosques, their purchasing power will be maintained and the price of goods for ISAF and JSOC will be driven up further as they will have competition from the locals for scares products.