The Inside Story Podcast What is the cost of the war between Israel and Iran?
Jun 21, 2025
Aly-Khan Satchu, a GeoEconomic Analyst and Investor, and Eyal Winter, a Professor of Economics at Hebrew University, delve into the staggering costs of the Israel-Iran conflict. They explore how the war is straining both nations' economies, implications for global inflation, and vital concerns about oil prices and shipping routes. The discussion also highlights Israel's tech resilience and the ongoing economic challenges in Iran due to sanctions. Their insights shed light on the potential long-term consequences of this protracted struggle.
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Israel's Economic Resilience in War
- Israel sustains costly war efforts through its resilient tech-driven economy.
- Despite disruptions, high-tech firms continue operating effectively during conflict.
Iran's Economic Challenges Pre-War
- Iran's economy struggles due to decades of sanctions and mismanagement.
- Recent power shortages and strikes have further disrupted production and delivery systems.
Iran's Economic Anti-Fragility
- Iran's long sanctions have made its economy largely autarchic and anti-fragile.
- Despite low oil exports, Iran's economy is stronger than many expect under current pressures.