Would Taking on Iran Be Good For the Economy?


For the last few weeks, The Atlantic has hosted a debate on Jeffrey Goldberg's provocative cover story on the likelihood that Israel will bomb Iran in the next year. An Israeli attack on Iran's nuclear sites could change the landscape of the Middle East and U.S.-Mid East relations for a generation.

But what impact could a U.S.-Iran confrontation have on our economy? Macroeconomic Advisers studied three military conflict scenarios and factored in the chance that the United States would tap its strategic petroleum reserve (SPR), which is currently enough to cover U.S. oil demands for about a month. Their conclusion:

The greater economic harm resulting from these scenarios is likely to come from longer lasting financial-market effects which reflect lingering uncertainty and geopolitical angst that arises from the outbreak of conflict in this volatile region.

Read the full story at the Microadvisers blog.

Presented by

Derek Thompson is a senior editor at The Atlantic, where he writes about economics, labor markets, and the entertainment business.

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register with Disqus.

Please note that The Atlantic's account system is separate from our commenting system. To log in or register with The Atlantic, use the Sign In button at the top of every page.

blog comments powered by Disqus

Video

A Stop-Motion Tour of New York City

A filmmaker animated hundreds of still photographs to create this Big Apple flip book

Video

The Absurd Psychology of Restaurant Menus

Would people eat healthier if celery was called "cool celery?"

Video

This Japanese Inn Has Been Open for 1,300 Years

It's one of the oldest family businesses in the world.

Video

What Happens Inside a Dying Mind?

Science cannot fully explain near-death experiences.

More in Business

Just In