US Treasury Secretary Scott Bessent has told the BBC a 'small bit of economic pain' is worthwhile for long-term international security. As the International Monetary Fund (IMF) warned the US-Israel war with Iran could plunge the global economy into recession, Bessent stated the conflict was aimed at eliminating the threat of Iranian nuclear strikes on Western capitals.
I wonder what the hit to global GDP would be if a nuclear weapon hit London... I am saying that I am less concerned about short-term forecasts, for long-term security, he said.
At the start of the war, Iranian officials stated that they had uranium enriched to 60%, although they do not possess nuclear weapons. The UK government also maintains that there is 'no assessment' of Iran attempting to target Europe with missiles. Bessent expressed that the economic impact is secondary to the risks posed by Iran.
He stated, 'The biggest risk you can take is one you don't know you were taking.' Recent hostilities have proven that Iran possesses intercontinental ballistic missiles which could threaten central cities, including London. Bessent believes that US and Israeli military actions have now diminished the risk of nuclear aggression from Iran.
But with the global economy under threat from escalating oil prices and supply disruptions, the IMF has predicted a significant downturn could occur, warning of a possible recession without effective resolution of the conflict. Rising energy costs due to the war have further compounded the risks for both the UK and other nations, as countries face challenges in energy supply and inflation.
Bessent's remarks serve as a stark reminder of the delicate balance between economic conditions and national security. The conflict's ramifications extend beyond immediate concerns, reflecting on the international economic landscape and the caution needed to ensure global stability.
I wonder what the hit to global GDP would be if a nuclear weapon hit London... I am saying that I am less concerned about short-term forecasts, for long-term security, he said.
At the start of the war, Iranian officials stated that they had uranium enriched to 60%, although they do not possess nuclear weapons. The UK government also maintains that there is 'no assessment' of Iran attempting to target Europe with missiles. Bessent expressed that the economic impact is secondary to the risks posed by Iran.
He stated, 'The biggest risk you can take is one you don't know you were taking.' Recent hostilities have proven that Iran possesses intercontinental ballistic missiles which could threaten central cities, including London. Bessent believes that US and Israeli military actions have now diminished the risk of nuclear aggression from Iran.
But with the global economy under threat from escalating oil prices and supply disruptions, the IMF has predicted a significant downturn could occur, warning of a possible recession without effective resolution of the conflict. Rising energy costs due to the war have further compounded the risks for both the UK and other nations, as countries face challenges in energy supply and inflation.
Bessent's remarks serve as a stark reminder of the delicate balance between economic conditions and national security. The conflict's ramifications extend beyond immediate concerns, reflecting on the international economic landscape and the caution needed to ensure global stability.
