America’s Suez Moment

How China, Russia, and Iran Won the 2026 War

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America’s Suez Moment: How China, Russia, and Iran Won the 2026 War

Historians often point to the 1956 Suez Crisis as the moment when the British Empire finally discovered that it was no longer the dominant power in the world. Britain and France joined Israel in attacking Egypt after President Gamal Abdel Nasser nationalized the Suez Canal. Militarily, the invasion initially succeeded. Politically, it was a disaster. The United States forced Britain to back down, exposing a reality that had been developing for years: Britain could no longer impose its will on the world without the support of a stronger power.

The British Empire did not collapse the next day. London remained wealthy and influential. But after Suez, everyone understood that the age of British global supremacy was ending.

The 2026 U.S.-Israeli war against Iran is likely to be remembered in much the same way.

This is not the end of American power. But the unprovoked, illegal, immoral War by the US and Israel against Iran will be remembered as America’s Suez Moment.

From a conventional perspective, this claim may sound absurd. The United States and Israel inflicted enormous damage on Iran. China and Russia never fired a shot. Yet the significance of wars lies not simply in military outcomes but in their impact on the global balance of power.

As Lenin observed in his analysis of imperialism, great powers compete not merely for territory but for control over markets, resources, finance, and strategic influence. The 2026 war was intended to reinforce U.S. dominance in the Middle East and demonstrate that Washington remained capable of disciplining states that challenged its authority. Instead, the conflict revealed the limits of American power and accelerated trends that were already undermining U.S. hegemony.

Iran suffered greatly, but it survived.

The government remained intact. The country was not occupied. Regime change did not occur. A negotiated settlement emerged instead of unconditional surrender. Like Egypt after Suez, Iran demonstrated that a determined regional power could withstand immense pressure from stronger military adversaries and emerge politically intact.

The larger winners were China and Russia.

Neither country directly intervened on Iran’s behalf. Critics correctly point this out. But great powers do not always win by fighting wars. Sometimes they win because their rivals spend vast amounts of money, political capital, and military resources achieving less than they intended.

For decades, economist Michael Hudson has argued that the true foundation of the American empire is not simply military force but what he calls financial imperialism. The dollar-based international financial system allows Washington to run massive deficits, impose sanctions, freeze assets, and exert extraordinary influence over the global economy. The petrodollar system became one of the central pillars of that power.

The Iran war will almost certainly accelerate the erosion of that system.

Around the world, governments watched the conflict and drew a simple lesson: dependence on the dollar leaves countries vulnerable to U.S. pressure. As a result, incentives to trade outside the dollar system continue to grow. China has spent years building alternative financial institutions, expanding yuan-denominated trade, and creating mechanisms that reduce dependence on Western-controlled financial networks.

The result is not the immediate collapse of dollar dominance. But it is another step toward accelerated de-dollarization and the gradual erosion of petrodollar supremacy.

Richard Wolff frequently reminds audiences that empires rarely recognize their own decline while it is occurring. Imperial elites often respond to growing economic challenges with increasingly aggressive displays of military power. Such actions may project strength in the short term while revealing weakness in the long term. The British Empire after World War II provides a classic example. Suez was not the cause of Britain’s decline; it exposed a decline that was already underway.

The same may be true today.

From the perspective of Immanuel Wallerstein’s world-systems theory, the United States remains the leading power within the capitalist world-system, but its dominance is increasingly challenged by emerging centers of economic accumulation. China has become the world’s manufacturing powerhouse. Russia remains a major energy and military power. The BRICS bloc continues to expand. Economic and political power are becoming more dispersed throughout the global system.

The Iran war accelerated that process.

Countries throughout the Global South increasingly seek alternatives to U.S.-dominated institutions. They are pursuing regional trade agreements, alternative payment systems, currency swaps, and new development banks. Many see China not merely as a trading partner but as a potential counterweight to American influence.

Within the next decade, the yuan is likely to emerge as a major reserve currency alongside the dollar and euro. The BRICS nations are likely to play an increasingly important role in shaping global finance and trade. While the United States will remain enormously powerful, it will face a world in which its ability to dictate outcomes is significantly reduced.

That is why the real significance of the 2026 Iran war extends far beyond the Middle East.

Like the Suez Crisis of 1956, it may ultimately be remembered not because it marked the collapse of an empire, but because it exposed the reality that a new world order was already being born. Iran survived. Russia strengthened its strategic position. China expanded its economic influence. The BRICS project gained momentum. De-dollarization accelerated. And the world received another unmistakable signal that the unipolar era is drawing to a close.

History teaches this unrelenting lesson: All Empires Fall.

I believe this is the beginning of the end of the US Empire. But don’t celebrate yet. History also teaches us that empires are most dangerous in their final days. So organize in your own community. Build authentic relationships of trust.

Let’s build the world we so desperately need, and so richly deserve.

Together.