Iran and the Global Economy
The escalating confrontation between the United States and Iran over the latter’s nuclear program has triggered much debate about what actions should be taken to ensure that Iran does not develop a nuclear weapon. How might certain actions against Iran affect the global economy? FAS released the results of a study, “Sanctions, Military Strokes, and Other Potential Actions Against Iran” which assesses the global economic impact on a variety of conflict scenarios, sanctions and other alternative actions against Iran. FAS conducted an expert elicitation with nine subject matter experts involving six hypothetical scenarios in regards to U.S. led actions against Iran, and anticipated three month cost to the global economy. These scenarios ranged from increasing sanctions (estimated cost of U.S. $64 billion) to full-scale invasion of Iran (estimated cost of U.S. $1.7 trillion).
This report outlines a framework relying on “Cooperative Technical Means” for effective arms control verification based on remote sensing, avoiding on-site inspections but maintaining a level of transparency that allows for immediate detection of changes in nuclear posture or a significant build-up above agreed limits.
The grant comes from the Carnegie Corporation of New York (CCNY) to investigate, alongside The British American Security Information Council (BASIC), the associated impact on nuclear stability.
Satellite imagery of RAF Lakenheath reveals new construction of a security perimeter around ten protective aircraft shelters in the designated nuclear area, the latest measure in a series of upgrades as the base prepares for the ability to store U.S. nuclear weapons.
It will take consistent leadership and action to navigate the complex dangers in the region and to avoid what many analysts considered to be an increasingly possible outcome, a nuclear conflict in East Asia.