US president Barack Obama recently approved fresh sanctions against Iran in a crucial step to mount pressure on Iran over its nuclear weapons programme, and re-open the gates of diplomacy.

The pressure of economic isolation by imposition of laws and restrictions that hinders or distracts economic activity leading to convulsion of social, financial and economic problems may bring a nation back into dialogue.

Tensions are flaring high enough between US and Iran over the Iranian ambition for nuclear programme that could potentially frazzle down peace and tranquility of the life of millions of people in the region.

Incessant Iranian nuclear activity has raised suspicion as to the heights of military power that Iran is interested in reaching. Through enrichment of uranium that may ultimately assist the development of nuclear weapons, over the years, this has translated into a threat to global peace and economic security.

Barack Obama lashed back at the Iranian stubbornness when he vowed to go ahead with tough sanctions on Iran, saying that there is enough oil in the world markets to allow countries like India and China to reduce their dependence on Iranian imports.

President Obama said in his speech: “There is a sufficient supply of petroleum and petroleum products from countries other than Iran to permit a significant reduction in the volume of petroleum and petroleum products purchased from Iran by or through foreign financial institutions.”

Major portion of Iranian revenue comes from oil; any attempt to drag down oil exports for Iran will have a detrimental effects on its economy.

Currently, Tehran is facing its toughest round of sanctions since 2002, when it was discovered that the authorities had been hiding an 18-year-old programme for strategic mastering of nuclear work, enrichment of uranium to fuel power reactors or to produce an atomic bomb.

From the beginning, it seems there had been deterrent reluctance from Iran to disclose their true ambition behind this programme, which eventually solidified in ground for concern on behalf of the international community.

War may not be the right answer to this crisis, because the world is  already at economic war, battling it out within national economies, originally because the US housing market bubble erupted and swallowed the Lehman Brothers in 2008. Even after four years of consolation in terms of amendments to laws overlooking financial industry, bailouts, and austerity packages, the global economic future seems bleak.

War may devastate Iran’s dream of nuclear power, and invites to consequences hard to imagine as well. It will become a major source of complications for global economy, hurting trade, force a decline in growth rate, and fiscal deficits. War may fetch great success to those who see no other alternative, but it will plunder the hope of stability and peace in the region, affecting millions of lives, ruining sources of livelihood, and demolishing the will to survive.

The objectives for this war may be different, but history stands witness to the fact that war kills humanity and from an economic perspective during a recession period, war is turmoil. The international community should push as strong as possible to avoid conflict, and try to nourish the dream of diplomacy.

Image Courtesy of   http://www.flickr.com/photos/presidenciaecuador/

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About the author

Muhammed Faraaz
Post-graduate in Economics from India, unfolding complexities and policies. Proponent of Classical Economics.