US Launches Iran Economic Offensive After $100 Billion War Failed

Q: With WA's controversial GST deal costing billions, which state will ultimately pay the hidden price for this political promise?

Ultimately, taxpayers in every other state and territory are likely to bear the cost — with Queensland, New South Wales, Victoria, South Australia, Tasmania, the ACT and the Northern Territory all exposed if the Commonwealth top-up ends and the burden shifts back into the GST pool. That is the warning from the Productivity Commission’s review of the 2018 WA GST deal. It says the arrangement has already cost about A$23 billion, far above the original estimate, and has mainly benefited Western Australia. The Commonwealth has so far masked the impact through “no worse off” payments, which Albanese says he is willing to keep funding. The hidden price is that this is still national money. Even while Canberra covers the top-up, taxpayers across all states fund it through the federal budget. The commission says those payments were about A$6.4 billion in 2024–25 alone and could climb to A$12 billion a year if iron ore prices rise. The sharper risk falls on the eastern and smaller states if those federal compensation payments expire as scheduled in 2029–30. The review says the uncapped cost burden would then shift to the states through the GST system itself. That means states already arguing they are underfunded — especially Queensland, South Australia, Tasmania and NSW — would effectively pay more directly through a reduced relative share. So the political promise protects WA, but the economic cost is spread nationally now and could hit the other states more visibly later.

3 articles · Updated · The New York Times · Aug 24

$100 billion in estimated costs and 18 American deaths preceded Washington’s launch of Operation Economic Outcast, a bid to sever Iran’s remaining financial lifelines after bombing failed to force nuclear concessions.
Treasury Secretary Scott Bessent said the campaign will target digital transactions, ship-to-ship oil transfers and global gold movements to choke off money reaching Tehran.
The strategy reverses the usual U.S. escalation ladder, moving to maximum economic coercion only after military action failed to eliminate Iran’s 11 tons of enriched uranium or topple its government.
China poses the biggest test for enforcement because it bought more than 80% of Iran’s oil exports in 2025, raising the risk of a fresh clash with Beijing.