Iran, Pope, Economy: How many battles can Trump fight at once?

The U.S. is navigating a dangerous convergence of foreign policy crises, economic volatility, and unprecedented executive overreach under President Trump, raising urgent questions about the durability of American global leadership. Despite the war with Iran disrupting global markets and threatening energy security—particularly through the Strait of Hormuz—the stock market and bond markets remain buoyant, suggesting a disconnect between financial confidence and geopolitical reality. This dissonance is exacerbated by Trump’s aggressive attacks on institutional independence, including the Federal Reserve, the Pope, and the judiciary, all while pursuing a strategy of unilateral action that risks undermining the very foundations of U.S. credibility. The episode reveals a growing climate of fear in Washington, where even senior officials speak in hushed tones, and a new norm has emerged: public foreign policy intervention in domestic elections, as seen in Trump’s direct campaign for Viktor Orban in Hungary. This signals not just a shift in tactics, but a fundamental reordering of power—where the presidency consolidates authority at the expense of Congress, courts, and international norms. Yet paradoxically, the dollar remains strong, and markets show no panic, suggesting that global financial systems may still be betting on American resilience, even as the rules of governance are being rewritten in real time.