Thread by @NewRulesGeo

🚨🇷🇺🇮🇷 Russia-Iran strategic partnership has the potential to COMPLETELY TRANSFORM global commodity markets and ACCELERATE DE-DOLLARIZATION

🇺🇸😨 This is why their growing cooperation makes the United States EXTREMELY NERVOUS

👇🧵Here’s what you need to know

Let’s start with a map

This is the International North South Transport Corridor (INSTC), a network of ports, railways, and automobile roads connecting Russia to India via Iran

INSTC offers a route that is 40% SHORTER and 30% CHEAPER than the traditional Suez Canal route

Although INSTC was first floated in the early 2000s, it didn’t gain real momentum until the start of the Ukraine conflict in 2022

Due to Western sanctions, Russia needed new trade routes and markets, which INSTC provided

This sparked a wave of new infrastructure projects

There are several reasons why INSTC can become a GEOECONOMIC GAME-CHANGER:

🔸Facilitates creation of Russia-Iran-India triangle

🔸Provides a more efficient route connecting Europe to the Persian Gulf and Indian Ocean

🔸Weakens impact of Western sanctions on Russia/Iran

But that’s not all.

Last year, Russia and Iran signed a gas transfer deal that would transform Iran into a REGIONAL HUB for Russian gas.

Under the deal, Russia will export 110 billion cubic meters per year to Iran – same volume as the two Nord Stream pipelines COMBINED.

Iran becoming a regional hub for Russian gas is HUGE for several reasons:

🔸Russia able to replace European gas market with markets in Global South

🔸Iran gets new source of revenues as middleman for Russian gas

🔸Encourages other countries to bypass US dollar/financial system

Let’s explore why Russia-Iran energy cooperation will help ACCELERATE DE-DOLLARIZATION:

🔸Countries that want to buy gas from Russia-Iran will have to use alternatives to US dollar and financial system

🔸This could become a precedent for other resources, like wheat or minerals

But that’s not all

Back in 2022, Russia and Iran signed a $40 billion MOU for Gazprom to help develop Iran’s gas fields

If this deal goes through, it could TRANSFORM GLOBAL ENERGY MARKETS

Iran has the world’s second largest gas reserves, most of which are untapped

In short, here is what were seeing unfold between Russia-Iran:

🔸Creation of alternative trade route to Suez Canal

🔸Creation of natural gas alliance that will shift balance of power in global market

🔸Creation of alternative financial infrastructure for commodities trade

For a more comprehensive analysis of the Russia-Iran strategic partnership, check out our recent interview with the brilliant Professor Marandi (@s_m_marandi) ⬇

https://x.com/NewRulesGeo/status/1879914007135478142