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Economy

The perils of war with Iran

Last updated: June 22, 2025 8:25 am
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Ann Kiernan illustration of the US flag, with the red stripes shown as vapour trails behind missiles heading towards an industrial complex
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The recent tensions in the Middle East have brought the issue of war to the forefront once again. With Iran, Israel, and the US all involved in military actions, the stakes are high and the outcomes uncertain.

Israel’s recent military strikes against Iran have been largely successful, with key military leaders taken out and significant damage inflicted on Iran’s nuclear and military infrastructure. This success prompted US President Donald Trump to join the conflict, eager to show his strength and claim victory.

On the other hand, Iran’s strategy of leading an “axis of resistance” against Israel has backfired, with its proxies Hizbollah, Hamas, and others suffering significant blows. The Iranian regime itself is now under direct attack, facing tough choices on how to respond.

The consequences of this war remain unclear. While Israel may struggle to translate short-term gains into long-term security, the US risks getting embroiled in yet another prolonged conflict in the Middle East. The Iranian regime, despite being under pressure, may still survive and continue its adversarial stance.

The potential for escalation is high, with both Iran and the US facing difficult decisions on how to proceed. Iranian retaliation could trigger further US attacks, leading to a cycle of violence with unpredictable outcomes. Trump’s volatile nature and domestic political pressures add another layer of uncertainty to the situation.

The risks of a prolonged conflict are evident, with past experiences like the 1983 Beirut bombing serving as cautionary tales. The best-case scenario would be a complete dismantling of Iran’s nuclear program and a stable, pro-western government taking its place. However, such outcomes seem unlikely, leaving the door open for more conflict and instability in the region.

Israel, despite its military prowess, faces challenges in maintaining its dominance in the Middle East. The Netanyahu government’s actions in Gaza and Iran have strained its relationships, both internationally and domestically. The risk of backlash from the US, particularly if Israel is perceived as leading the country into another “forever war,” is a real possibility.

In the end, the gamble of war taken by Iran, Israel, and the US may result in all parties losing. The uncertainties and complexities of the situation underscore the need for careful planning and diplomacy to prevent further escalation and bloodshed.

For more in-depth analysis and expert insights, subscribe to the White House Watch newsletter today.

Gideon Rachman, FT Chief Foreign Affairs Commentator

[Original article source: Financial Times]

TAGGED:IranPerilsWar
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