UPDATES

Study weighs economic cost of a nuclear Iran

Oct 16, 2012 | Ahron Shapiro

Study weighs economic cost of a nuclear Iran
news_item/DSCF0534.jpg

Many analysts have expressed concern about the potential costs, economic and otherwise, of a military strike to stop Iran’s nuclear program – and rightly so. However, it is also important to take into account the heavy economic costs associated with inaction that would allow Iran to achieve nuclear capabilities.

Many have expressed concern that a crisis surrounding the Iranian nuclear program could spark a huge spike in oil prices, and seriously impede a global economic recovery. However, doing nothing could do the same thing, according to a new report by the Washington DC-based Bipartisan Policy Center.
If Iran achieves nuclear weapons capability, widespread regional instability in response could aggravate uncertainty about the security of energy production and transport, raising oil prices and negatively impacting the global economy, the well-known think tank agrees.

The report states,

 

Our analysis indicates that the expectation of instability and conflict that a nuclear Iran could generate in global energy markets could roughly increase the price of oil by between 10 and 25 percent, which, given current international oil prices, would result in prices $11 to $27 higher per barrel.

 

The complete report can be accessed at the Bipartisan Policy Center’s website.

Ahron Shapiro

 

Tags:

RELATED ARTICLES


A screenshot from a video released to the Iranian media by the regime showing workers shutting off the power to IAEA cameras at Iranian nuclear facilities. (Source: Tasnim News)

IAEA Board rebukes Iran; Iran shuts off IAEA surveillance cameras

Jun 11, 2022 | Update
While Iran's economy is currently in poor shape, estimates are that a nuclear deal could provide Teheran with up to US$275 billion within a year and US$800 billion over five years (Image: motioncenter, Shutterstock)

International implications of Iran’s economic unrest

May 31, 2022 | Update
Hezbollah does not hide its open affiliation with Iran - as these Hezbollah youth demonstrate - but the Middle Easterners are tired of the poverty, war and chaos that Iranian proxies bring to the countries they operate in. (Photo: nsf2019, Shutterstock)

Election setback for Hezbollah

May 21, 2022 | Update
Shireen Abu Akleh, the well-known Al Jazeera journalist who was killed during a firefight between Palestinians and the IDF in Jenin under unclear circumstances on Wednesday, May 11 (Credit: Wikimedia Commons)

Controversy follows tragic death of journalist Shireen Abu Akleh

May 13, 2022 | Update
Russian Foreign Minister Sergei Lavrov on Italian TV: "Hitler also had Jewish blood. It means absolutely nothing…the most ardent antisemites are usually Jews." (Photo: YouTube screenshot)

The implications of Israel’s recent spat with Russia

May 7, 2022 | Update
Russia's Foreign Minister Sergei Lavrov hosts Iran's Foreign Minister Hossein Amir-Abdollahian in January: A new Iran nuclear deal would be a boon to Russia and allied anti-democratic forces (Photo: ITAR-TASS News Agency / Alamy Stock Photo)

Are the Iran nuclear talks deadlocked?

Apr 29, 2022 | Update

SIGN UP FOR AIJAC EMAILS

RECENT POSTS

Image: Flickr

AIJAC testimony to Victorian Parliamentary Inquiry into Extremism

Image: John Theodor/ Shutterstock

Stability is at stake

India has historically had a distant relationship with Israel, but this has changed dramatically in recent years, as evidenced by the close relationship between former Israeli PM Netanyahu and Indian PM Modi (Image: Isranet)

Essay: Israel looks East

The struggle to succeed 86-year old PA President Mahmoud Abbas is consuming Palestinian politics (Image: Shutterstock)

Does Mahmoud Abbas finally have a successor?

Image: Shutterstock

Polls suggest yet another deadlocked election

Image: Flickr

AIJAC testimony to Victorian Parliamentary Inquiry into Extremism

Image: John Theodor/ Shutterstock

Stability is at stake

India has historically had a distant relationship with Israel, but this has changed dramatically in recent years, as evidenced by the close relationship between former Israeli PM Netanyahu and Indian PM Modi (Image: Isranet)

Essay: Israel looks East

The struggle to succeed 86-year old PA President Mahmoud Abbas is consuming Palestinian politics (Image: Shutterstock)

Does Mahmoud Abbas finally have a successor?

Image: Shutterstock

Polls suggest yet another deadlocked election

SORT BY TOPICS