US strike on Iran to cost world USD1.7 trillion in losses: Report

The Federation of American Scientists (FSA) has warned that a US military strike against Iran would cost the global economy up to USD1.7 trillion in losses.

In a special report, relayed by the Inter Press Service (IPS), the Federation said that the billion-dollar losses would be inflicted on the world’s economy over the first three months following a military action by the United States against the Islamic Republic.

“The study’s findings suggest that there are potential costs to any number of US-led actions and, in general, the more severe the action, the greater the possible costs,” Mark Jansson, FAS’s special projects director, was quoted as saying.

“That being said, even among experts, there is tremendous uncertainty about what might happen at the higher end of the escalation ladder,” added Jansson, a co-author of the report.

The FSA, however, noted that a US move to “make concessions” over Iran’s nuclear energy program would result in USD60 billion in benefits for the world’s economy.

Paul Sullivan, a professor of economics at Georgetown University, warned that military strike on Iran would dramatically drive up the oil prices.

“If there is an attack on Iran, with the expected counterattacks the price of oil could quite easily go to 250 dollars or higher. This could push the US right back into a recession,” he said.

“The main effects to the US if there is escalation is through the price of oil and increased military and other national security costs,” warned Sullivan.

The US and Israeli officials have intensified their anti-Iran war rhetoric in recent months to put more pressure on the country over its nuclear energy program.

Iran has promised a crushing response to any military strike against the country, warning that any such measure could result in a war that would spread beyond the Middle East.