Trump is losing his 'game of chicken' with the economy

President Donald Trump is risking the economy on a "game of chicken" with Iran that is "about to enter a dangerous new phase," according to a new analysis from CNN, and for the time being, Iran is winning.In fact, according to the Tuesday report, Iran "has been winning" the game against Trump and appears poised to continue doing so, though the president appears to be betting that the U.S. economy is robust enough to withstand any damage longer than his enemies can."Trump’s extraordinary blockade of the Strait of Hormuz this week shows the United States isn’t backing down just yet. But America’s significant new step adds substantial risk – to more than just the economy," CNN explained. "If it lasts, the blockade could inflict severe damage to both the Iranian and the US economies. It’s a kind of mutually assured economic pain that the United States, with its $31 trillion economy, is betting it can better withstand."CNN explained that around 1.8 million barrels of oil are being blocked from the global market each day that the Strait of Hormuz remains blocked. While that it only 2 percent of the world's daily oil consumption, it adds up over time and means that oil prices might go even higher.Helima Croft, global head of commodity strategy at RBC Capital Market and a former CIA analyst, told the network that, in her estimation, neither side appears willing to give an inch currently.“Oil’s game of chicken continues to escalate,” Croft said. “I’m not sure either side is prepared to swerve.”Keeping this situation in effect, however, will put U.S. military forces at a heightened risk of casualties, something which CNN argued has been kept to a minimum in the conflict so far. Until the hypothetical time at which Iran blinks and caves to Trump's demands, U.S. consumers will also continue to suffer from worsening gas prices, creating a combination of pressures that the American people have not traditionally been keen to grapple with."Americans are already largely opposed to the war, and the blockade risks two outcomes they have demonstrated no tolerance of: even higher gas prices and troop casualties," the report continued. "Trump is betting Iran will blink first, but Iran has withstood severe economic pain before, and there’s little evidence it is prepared to back down from this existential fight."CNN added: "The blockade also risks spreading the war beyond its current confines. Iran has already retaliated against previous US and Israeli attacks by blowing up crucial energy infrastructure in Qatar and Saudi Arabia, and Croft said she expects Tehran would increase attacks on regional energy facilities if Trump backs his threat with action."