In brief
In a recent BBC interview, US Treasury Secretary Scott Bessent discussed the necessity of accepting 'a small bit of economic pain' for long-term safety from Iranian threats. This comes as the IMF warns that the Israel-Iran conflict could drive the global economy toward recession. Bessent expressed greater concern over the implications of Iranian nuclear threats than immediate economic forecasts, reinforcing the idea that security must take precedence over economic comfort.
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 said the conflict was to eliminate 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, Iran had uranium enriched to 60%, according to senior US officials. It does not have nuclear weapons.
The UK government has said there is no assessment that Iran is trying to target Europe with missiles.
Bessent told the BBC he was less concerned about the economic hit than the risk Iran posed to global security.
The biggest risk you can take is one you don't know you were taking."
Now we know for a fact that, as the Iranians shot at Diego Garcia, they do have mid-range intercontinental ballistic missiles that could reach London, and we know that they want a nuclear programme, he said.
He added that US and Israeli strikes had removed the tail risk of Iranian nuclear strikes against Western countries.
As the IMF also noted, the global economy faces severe challenges due to the ongoing conflict, warning of inflation spikes and potential recession.
Recent assessments indicate that if the war continues under worst-case scenarios with high oil and food prices, the global growth could potentially fall below 2% in 2026, according to the IMF. They highlighted significant impacts on various economies, particularly the UK, which is expected to face the largest growth hit among advanced economies.
