US Treasury Secretary defends short-term economic pain for long-term security amid Iran war

US Treasury Secretary Scott Bessent has stated that the economic downturn caused by the ongoing US-Israel conflict with Iran is a necessary sacrifice to prevent the threat of Iranian nuclear strikes on Western capitals.

Bessent emphasized that while the global economy faces challenges, the long-term security benefits outweigh the short-term economic costs.

The International Monetary Fund (IMF) has warned that the war could push the global economy into recession, with global growth potentially falling below 2% in 2026 if oil, gas, and food prices spike and remain high.

Despite these warnings, Bessent expressed confidence that the US and Israeli military actions have reduced the risk of Iranian nuclear attacks.

Iran maintains that its nuclear program is peaceful, and the UK government has stated there is no assessment that Iran is targeting Europe with missiles.

However, Bessent highlighted that Iran possesses mid-range intercontinental ballistic missiles capable of reaching London, citing Iranian missile activity near Diego Garcia as evidence.

The UK government reassured that it has the military capabilities to defend against any attacks on British soil or from abroad.

Officials emphasized readiness to protect the country regardless of the threat's origin.

The IMF's World Economic Outlook report noted that the war's outbreak in late February 2026 has disrupted key energy routes, such as the Strait of Hormuz, leading to soaring energy prices.

This disruption contributes to the risk of a global economic slowdown.

Bessent argued that the risk of a nuclear strike is a far greater threat to global security than the economic pain currently being experienced.

He suggested that the potential damage from a nuclear attack on a major city like London would far exceed the current economic downturn.

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