Bloomberg Intelligence Iran Pledges ‘Decisive’ Reply to US Strikes as Israel War Rages
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Jun 23, 2025 Ariel Cohen, a Senior Fellow at the Atlantic Council and an expert on the Middle East, discusses Iran's vowed ‘decisive’ response to recent U.S. strikes. Insights into how geopolitical tensions affect oil prices and market behaviors reveal concerns over a potential Iranian military reaction. Cohen also explores Iran's precarious political landscape and its implications for regional stability. The conversation touches on significant complexities surrounding U.S.-Iran relations and the economic ramifications of escalating conflicts in the Middle East.
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Iran's Limited Response Options
- Iran is likely to respond to U.S. strikes but has limited options that avoid severe consequences.
- Their possible responses risk alienating allies and worsening their fragile political standing.
Complexity of Iranian Regime Change
- Iran's regime is complex and fractured with diverse factions and harsh internal repression.
- This complicates any prospects for internal regime change without popular, organic uprising.
Market Cautious on Geopolitical Risks
- Despite geopolitical tensions, markets reacted mutedly due to uncertainty and expanded potential outcomes.
- Diversified energy sourcing is critical to reduce risks from such escalations.