> I think the regime is very weak.
The "enemy of my enemy" concept suggests that even if the people hate their government, their immediate pain is being caused by the United States and Israel, so I'm less confident about that.
> Iran does not think they are dealing with a madman.
Iran does think they are dealing with a mad man, or at least a government practicing a policy (as the US administration's apologists have termed it) "intentional volatility".
A far more interesting issue here is the oil supplies available in the Pacific. Brunei, Malaysia, Vietnam, Indonesia, Australia, and others are all ramping up production capacity. Non-OPEC oil production is increasing generally in response. This is likely to undermine the Middle East's ability recovery from current constraints as non-OPEC players gain clout in the markets.
Right now people are talking about China and California have limited supplies. But those are enormous, powerful entities that are deploying multi-pronged strategies to secure energy resources. Look at what they're doing and bet there. You also see developing countries retooling to support less oil-intensive economies, like increasing work-from-home options. Solar and wind are currently feeling weak without their subsidies but are exhibiting staying power as people look to move off more petroleum-dependent energy resources.
As for the tactical issue, the concept people seem to be trying to get at is "cost-per-kill". That needs to come down. Yes, we can kill drones with supersonic interceptors. But spending $6M to shoot down a $6K drone has terrible long-term economics.
> Iran does think they are dealing with a mad man, or at least a government practicing a policy (as the US administration's apologists have termed it) "intentional volatility".
We're going to agree to disagree. I know this is what "people" are saying about the US. But it's not what Iran thinks and it's not what the US is actually doing. This is what Iran wants you to think, as it weakens the US, and what it's going to say. Are you saying that the US will go to war with Iran if all the demands I listed were fully and transparently met? A by the way there is that Europe and Canada (e.g.) also don't think the US administration is "mad". Everyone is playing their little geopolitical and local political games.
I also doubt Iranians think their immediate pains are caused by the US and Israel. Some might but most don't.
I agree with you the energy crisis aspect is overblown (I think that's what you're saying). Supply increases in other places and alternative power sources can displace some usage- certainly over time. The other thing that's going to happen are more strait bypassing pipelines.
EDIT: So the problem isn't mad people or rationality. The problem now, as before, is simply that the Iranian regime is religiously and ideologically unable to give in. Giving in will likely result in their fall even if they were able to give in. This is what's driving the main dynamics here. It's not Iranian negotiation tactics or the US supposed not negotiating in good faith or being "mad". The "mad man" are those that believe that Iran is interested in giving in on its exporting the revolution and the destruction of Israel.