Reuters informs us that a top Israeli brokerage firm has released a report concluding that the costs of attempting to eliminate Iran’s alleged nuclear ambitions militarily outweigh the benefits:
In a report “The Iranian Issue through Economic Eyes,” Kahanovich laid out courses of action — ranging from additional “light sanctions” to military strikes — and told investors the world would likely balk at taking the steps needed to stop Iran from developing nuclear weapons.
Even for Israel the economic cost of a military confrontation that could include retaliatory missile attacks by Tehran and proxies in Gaza and Lebanon would be too high, Kahanovich wrote.
“Unfortunately, it appears that a nuclear Iran is the most reasonable scenario,” he added.
Chief economist Amir Kahanovich said the economic effects of going to war with Iran could be devastating for Israel and the world:
If Iran were backed into a corner it could take action, such as blocking the Strait of Hormuz, causing the price of oil to jump above $250 a barrel, the report said.
And the burden of funding a military confrontation would be too great with so many countries already hurting in the world economic crisis, it added.