US Treasury Secretary Bessent: Economic Pain Worth Long-Term Security from Iran
US Treasury Secretary Scott Bessent stated in a BBC interview that enduring a small amount of economic pain is justified to eliminate the long-term threat of Iranian nuclear strikes on Western capitals. This comment comes as the International Monetary Fund (IMF) warned that the ongoing US-Israel war with Iran could trigger a global recession, with growth potentially falling below 2% in 2026 if energy prices remain high. Bessent argued that the risk of unknown threats, such as Iranian ballistic missiles capable of reaching London, outweighs short-term economic forecasts. He claimed recent strikes have removed the tail risk of nuclear attacks. Conversely, the UK government stated there is no assessment that Iran is targeting Europe with missiles. The IMF highlighted that soaring oil and food prices, driven by the closure of the Strait of Hormuz, could lead to spiraling inflation and unemployment. However, it noted that if the conflict resolves quickly and energy exports normalize, global growth might stabilize at 3.1%. The article contrasts security priorities with severe economic warnings from international financial institutions regarding the Middle East conflict's impact on global stability.
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US Treasury Secretary Bessent: Economic Pain Worth Long-Term Security from Iran
US Treasury Secretary Scott Bessent stated in a BBC interview that enduring a small amount of economic pain is justified to eliminate the long-term threat of Iranian nuclear strikes on Western capitals. This comment comes as the International Monetary Fund (IMF) warned that the ongoing US-Israel war with Iran could trigger a global recession, with growth potentially falling below 2% in 2026 if energy prices remain high. Bessent argued that the risk of unknown threats, such as Iranian ballistic missiles capable of reaching London, outweighs short-term economic forecasts. He claimed recent strikes have removed the tail risk of nuclear attacks. Conversely, the UK government stated there is no assessment that Iran is targeting Europe with missiles. The IMF highlighted that soaring oil and food prices, driven by the closure of the Strait of Hormuz, could lead to spiraling inflation and unemployment. However, it noted that if the conflict resolves quickly and energy exports normalize, global growth might stabilize at 3.1%. The article contrasts security priorities with severe economic warnings from international financial institutions regarding the Middle East conflict's impact on global stability.
BBC News