Bomb Bomb Iran?

Iran gave the IAEA the finger today. There's really no reason to expect the Iranians will give up their nuclear program. There's no political constituency that would prefer cooperating with Israel to producing their own nukes. By continuing the program, Ahmadinejad risks an air strike by Israel, but this would probably be a net positive for him, as it would completely eliminate the domestic protest movement.

The ball is really in Israel's court -- they will need to decide whether air strikes will be worth the retaliation. Their decision will depend on how effective they believe the air strikes would be. If it were an Osirak situation, where an air strike effectively ended the Iraqi nuclear program, I think Israel would do it in a second. Iran's program is much more distributed and protected. Whether a strike will seriously set back their nuclear ambitions has to do with a lot of technical factors that civilians don't know about.

Would Israel really suffer that much in retaliation? Their neighbors have hated them for 50 years already. They fought a proxy war against Iran-sponsored Hezballah a few years ago. After the way Iran has negotiated in bad faith, and made it clear they will never bargain away their nukes, I think the US and Europe would not judge Israel too harshly. An air strike would disrupt progress with the Palestinians, but Prime Minister Netanyahu is conservative and is probably not eager to actually reach any real agreement.

Obviously such a thing is not done lightly, but if China and Russia do not support sanctions against Iran, Israel will probably follow its own self interest and bomb Iran.

5 comments:

Anonymous said...

Wiser:

Afghanistan 10,000+ contract may be interesting.

Jesse Livermore said...

Intrade were just slow to expire the contract. After all it was 2 AM in Ireland when the official announcement happened.

Anonymous said...

I totally disagree with your assessment. For a number of reasons (dipersed nuclear program, early stages of technological advance, invevitable retaliation and international consequences) I don't think that Israel will bomb Iran in the foreseeable future. I am willing to put up a lot of money against this, if you are interested... Chris

Jesse Livermore said...

Too much uncertainty for me to get involved. I'd buy the Dec.2010 at 10, but I doubt you'd want to sell them to me.

Anonymous said...

Thanks for the offer! I'd consider Dec.2010 at 10 to be reasonable but for now I'm getting March.2010 matched at 10 and December.2010 matched at 30 so I'll kindly decline... Chris

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