Bulwark Takes
Bulwark Takes
May 27, 2026

Bob Kagan: We’re About to Find Out What Real Failure Looks Like | Bulwark Podcast

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Quick Read

Bob Kagan argues that Trump's Iran policy is a strategic surrender, leading to the collapse of the US-led world order and empowering adversaries like Iran, China, and Russia while alienating traditional allies.
Iran is dictating terms, gaining control of the Strait of Hormuz and effectively ending sanctions.
The US is abandoning its global role, leaving allies vulnerable and creating opportunities for Russia and China.
The post-World War II American-led world order is collapsing, leading to unprecedented global instability.

Summary

Bob Kagan, a contributing writer at The Atlantic and senior fellow at Brookings, asserts that the US has effectively lost the war with Iran, characterizing Trump's current negotiations as a surrender. He details how Iran is dictating terms, demanding billions in unfrozen assets, and gaining control over the Strait of Hormuz, effectively nullifying any future sanctions. Kagan criticizes the media for misreporting the situation and the Republican national security establishment for its silence. He predicts a significant shift in US foreign policy towards an 'America First' hemispheric focus, abandoning global alliances and leaving allies like Israel, Japan, and European nations vulnerable. This shift, he contends, creates opportunities for powers like Russia in Europe and diminishes US influence against China, leading to a breakdown of the post-World War II international order.
This analysis highlights a critical juncture in US foreign policy, where a perceived strategic defeat in the Middle East is accelerating a broader disengagement from global leadership. The implications include a more powerful Iran, a weakened Israel, a fragmented European security landscape vulnerable to Russian aggression, and diminished US standing against China. For businesses and policymakers, understanding this shift is crucial for anticipating geopolitical instability, energy market changes, and the re-alignment of international alliances.

Takeaways

  • The US effectively lost the war with Iran after March 18th, with Trump delaying the reality of defeat.
  • Iran has made no concessions; the 'deal' involves them shaking down Trump for billions in unfrozen assets.
  • The Strait of Hormuz will operate under Iranian control, allowing them to charge tolls and use it as leverage, effectively ending sanctions.
  • Media reporting on the Iran situation has been poor, failing to recognize the 'fraud' of Trump's claims and the settled nature of the conflict.
  • Trump's policy is turning against Israel, excluding them from negotiations and making them the primary victim of Iran's increased power.
  • The Abraham Accords are 'dead' as Israel becomes a pariah, and Arab states will be forced to cut deals with Iran.
  • The US is accelerating withdrawal from Europe and has weakened Asian alliances, notably giving away Taiwan aid to China as leverage.
  • Russia sees a 'once-in-a-lifetime opportunity' to make strategic gains in Europe due to US disengagement, potentially by disrupting aid to Ukraine.
  • The US military is strained by prolonged deployments and depleted missile stocks, making it difficult to sustain multiple conflicts or new interventions like in Cuba.
  • The 'America First' foreign policy, driven by a perceived failure of past US global engagement, is leading to a breakdown of the stable post-World War II world order.

Insights

1Trump's Iran Policy is a Strategic Surrender, Not a Deal

Bob Kagan asserts that the US effectively lost the war with Iran after March 18th. Trump's administration has been trying to delay this reality, while Iran has made no concessions. The proposed 'deal' is a mechanism for Iran to extract billions in unfrozen assets and gain control over the Strait of Hormuz, which will allow them to dictate terms to global shipping and effectively nullify any future sanctions.

Kagan states, 'We effectively lost the war after March 18th. Trump has done nothing since March 18th... Iran has not made a single concession on any point.' He adds that Iran is 'shaking Trump down for money' in return for 'opening the straight' under Iranian control, which will be used as leverage against all nations.

2US Disengagement Empowers Adversaries and Weakens Allies

The shift towards an 'America First' foreign policy under Trump is leading to a broad disengagement from global commitments. This includes accelerating troop withdrawals from Europe, creating disarray in Asian alliances, and potentially abandoning Taiwan. This vacuum is being filled by powers like Russia, which sees a 'once-in-a-lifetime opportunity' to make strategic gains in Europe, and China, which is now regarded as an 'equal partner' by the US, despite gaining concessions on Taiwan.

Kagan notes, 'This is the beginning of a general turn to real America first foreign policy. I think the Iran expedition is probably the last thing that Trump does outside the hemisphere.' He mentions 'accelerating their withdrawal of troops from Europe' and that 'Asian alliances are in complete disarray.'

3Israel and Gulf States Face Dire Consequences from US Retreat

Israel, for whom the US-Iran conflict was largely fought, is now the primary victim of Trump's disengagement, being excluded from negotiations and facing a newly empowered Iran. The Abraham Accords, once touted as a success, are now 'dead' as Israel becomes a pariah in the region. Gulf States, realizing the US cannot protect them and has depleted its missile defense stocks, are forced to cut deals with Iran, further solidifying Iran's regional dominance.

Kagan states, 'We fought this war, the United States fought this war for Israel, everybody can see that... Israel is going to pay the biggest price by far.' He also notes that the Abraham Accords 'far from expanding, are now dead.'

4The Collapse of the Sanctions Regime is Inevitable

With Iran gaining control over the Strait of Hormuz, the global sanctions regime against Iran will collapse. Countries dependent on energy from the Persian Gulf, such as Japan and Korea, will be compelled to cut deals directly with Iran to secure access, bypassing any US-led sanctions. Iran will simply deny passage to vessels from nations that impose sanctions.

Kagan explains, 'The notion... that there's going to be a sanctions regime on Iran still. No, there isn't. Because the Iranians are not going to let anybody with a vessel who's putting sanctions on them with a vessel get the get their vessel through the straight. That it's as simple as that.'

Bottom Line

The US military is being strained to a 'cracking' point by prolonged deployments in the Gulf and potential new quagmires like Cuba, impacting readiness and global defense capabilities.

So What?

This overextension means the US may lack the resources to effectively respond to multiple crises simultaneously, potentially creating vulnerabilities that adversaries could exploit.

Impact

Countries previously reliant on US security guarantees may accelerate independent military build-ups or seek new alliances, creating opportunities for defense industries and shifts in global arms markets.

The 'America First' foreign policy is not just about disengagement, but a potential pivot to 'purely hemispheric aggression,' focusing on interventions in regions like Cuba or Venezuela.

So What?

This shift could lead to new, costly quagmires closer to home, diverting resources and attention from major global challenges while offering little political benefit to the US.

Impact

Regional powers in the Western Hemisphere may need to re-evaluate their defense strategies and alliances in anticipation of potential US interventions or increased instability.

Key Concepts

World Order Management

Kagan argues that the US-led international system, established after World War II, has been uniquely successful in preventing great power conflicts and fostering prosperity. This system required the US to be willing to use force and take risks globally, which he refers to as 'global order management,' and that many interventions, even 'misses,' contributed to sustaining this order.

Leverage Mismanagement

Trump's approach to negotiation, particularly with China regarding Taiwan, is characterized as 'worst negotiating strategy in the world.' By announcing what he considered leverage (the Taiwan arms sale) rather than using it discreetly, he allowed China to turn it into their own leverage, thereby weakening the US position.

Lessons

  • Monitor shifts in global energy markets and shipping routes, particularly through the Strait of Hormuz, as Iranian control will impact supply chains and pricing.
  • Evaluate the stability of existing international alliances and prepare for potential re-alignments as US global leadership diminishes.
  • Assess the implications of increased Russian and Chinese influence in regions where the US is withdrawing, considering new risks and competitive landscapes.

Quotes

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"We effectively lost the war after March 18th. Trump has done nothing since March 18th basically... Iran has not made a single concession on any point."

Bob Kagan
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"The only people who've never said that are the uran are the Iranians. And and since they're the ones who are completely in the driver's seat right now, I think their deal is the one that is the one that is going to emerge."

Bob Kagan
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"We fought this war, the United States fought this war for Israel, everybody can see that... Israel is going to pay the biggest price by far."

Bob Kagan
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"The United States has proven that it cannot, will not, does not care to [protect the waterways of the world]... The sanctions are all going to fall."

Bob Kagan
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"Putin must see that this is maybe a once-in-a-lifetime opportunity to really make a fundamental strategic gain in Europe because the United States is so evidently leaving."

Bob Kagan
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"Americans came to take that for granted. They assumed that that is the steady state and therefore all we were ever doing was getting into trouble without realizing that the getting into trouble was part and parcel of the overall effort to sustain this world order."

Bob Kagan

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