The reported MOU to reopen Hormuz, highly favorable to Iran, is the least bad outcome for the US after Trump's disastrous decision for war -- and it illustrates how big a mistake the war was.
On net, the war hurt the U.S. in two major ways.
1.) The U.S. bargaining position with Iran is now worse off, because militarily, the U.S. underperformed and Iran overperformed compared to Trump's prewar expectations (which in my view were always mistaken).
That itself is tied to two factors:
A. Massive U.S. airpower did not succeed in quickly toppling the Iranian regime, which spoiled the president's theory of victory circa day 3 of the war. Once the conflict bogged down into a war of attrition, Iran had the upper hand, because of its superior resolve.
For Iran, the war is about survival, while for the U.S., it's an "excursion." This is the essence of asymmetric conflict and why militarily powerful countries often lose wars against weaker nations more willing to absorb the costs of fighting.
The fact that the balance of resolve favored Iran was knowable in advance -- and *many* analysts argued this prewar.
B. Iran tangibly demonstrated its leverage over the Strait of Hormuz by suppressing nearly all traffic simply through the threat of its missiles and drones. Before the war, its leverage was theoretical and latent. Now, it has been fully realized and cannot be undone, because it rests on geography and prevailing military technology -- i.e. cheap and plentiful missiles and drones.
Before, the U.S. thought it could threaten and ultimately fight a quick regime change war to reset Iran's negotiating position or perhaps induce Iran's full capitulation, without costs to the oil market. The conduct of the war proves that was a fantasy.
Iran's superior bargaining position is concretely reflected in the MOU. Iran gets immediate oil sanctions waivers and unfrozen assets ($3 billion of which might have already been transferred by the UAE according to reports) -- just to reopen the Strait of Hormuz and resume nuclear negotiations. Those are big chits the U.S. has handed in, already, to get roughly back to the prewar status quo.
2.) The war also hurt the U.S. because it was costly in U.S. lives, treasure and materiel.
- 13 U.S. soldiers died and at least 400 have been wounded (likely the injury count is higher but the Pentagon has been cagey about providing updated numbers).
- High-end U.S. munitions have been dangerously depleted, hurting U.S. readiness across all theaters, perhaps for years
- Budgetary costs of the war could exceed $1 trillion accounting for veteran's health claims and borrowing costs, according to Linda Bilmes at Harvard
- Even if oil resumes prewar flows immediately (it won't), the baked in economic damage is substantial. U.S. inflation in May, for example, reached 4.2% thanks to elevated oil prices.
- Global oil inventories have been dangerously depleted, making the whole system more vulnerable to any disruptions going forward.
And even still ... it's not clear if the MOU will go through, as Israel continues to occupy and attack Lebanon. So even this level of progress is quite fragile.
Trump never should have launched this reckless war -- and it's incumbent on all of us to learn the right lessons from it, namely that what's achievable through U.S. military power is inherently limited, and U.S. meddling in the Middle East tends to worsen outcomes, not improve them.