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US Treasury Secretary: Short-Term Economic Pain Justified for Long-Term Security Against Iran
The US Treasury Secretary told the BBC that a small amount of economic pain is acceptable to address the threat of Iranian strikes on Western capitals. This comes amid warnings from the International Monetary Fund that the US-Israel war with Iran could lead to a global recession. Energy prices have risen since the conflict began more than six weeks ago.
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The US Treasury Secretary Scott Bessent stated in an interview with the BBC that a "small bit of economic pain" is worthwhile to achieve long-term international security. He emphasized that the conflict aims to eliminate the threat of Iranian nuclear strikes on Western capitals.
Bessent expressed less concern about short-term economic forecasts compared to the risks posed by Iran to global security.
Bessent noted that the biggest risk is an unknown one, pointing to Iran's possession of mid-range intercontinental ballistic missiles capable of reaching London. He added that US and Israeli strikes have removed the tail risk of Iranian nuclear strikes against Western countries.
At the start of the war, Iran possessed uranium enriched to 60%, which could be quickly further enriched to weapons-grade levels, though the country does not currently have nuclear weapons.
Iran does not possess nuclear weapons, and a UK government spokesperson stated there is no assessment that Iran is trying to target Europe with missiles. The spokesperson added that the UK has the military capability needed to keep Britain safe from attacks, whether on its soil or from abroad. The UK is prepared to defend the country against any threat.
The BBC has reported that the threat of Iranian ballistic missiles to London remains remote. As previously covered by the BBC, this assessment aligns with official evaluations of the situation. The International Monetary Fund (IMF) warned in its World Economic Outlook report that the US-Israel war with Iran could plunge the global economy into recession.
In a worst-case scenario involving sustained spikes in oil, gas, and food prices, global growth could fall below 2% in 2026. The IMF noted that such a recession has occurred only four times since 1980, most recently during the Covid pandemic. Energy prices have soared since the war began more than six weeks ago, following the effective closure of the key Strait of Hormuz shipping route and the failure of peace talks between the US and Iran.
