Uploaded January 2020 | Updated September 2026, 20 minutes ago
The crisis/conflict between the United States and Iran has, without a doubt, dominated geopolitical headlines in 2020 thus far. And rightfully so, in light of the fact that... well, a lot is at stake.
While it might seem tempting to simply compare Iran's economy to that of the United States and leave it at that, concluding that Iran pales in comparison to the US, we need to understand that the equation tends to be multiple orders of magnitude more complex.
Leaving the direct dimension (GDP comparisons, military/defense spending comparisons and so on) aside, it's the indirect threats that prove to be more problematic. As explained in this video, Iran has more options at its disposal than meets the eye, from leveraging its networks in various countries to act against US interests to blocking trade (for example the Strait of Hormuz, through which 25% of the world's oil and a third of its natural gas flows).
However, as also explained in this video, there are very strong forces at play (primarily forces originating from some of Iran's relatively few let's call them allies, for example China) which act as deterrents in light of the fact that in our deeply interconnected global economy, it's pretty much impossible for Iran to take meaningful action in a way that only affects the US.
The crisis/conflict between the United States and Iran has, without a doubt, dominated geopolitical headlines in 2020 thus far. And rightfully so, in light of the fact that... well, a lot is at stake.
While it might seem tempting to simply compare Iran's economy to that of the United States and leave it at that, concluding that Iran pales in comparison to the US, we need to understand that the equation tends to be multiple orders of magnitude more complex.
Leaving the direct dimension (GDP comparisons, military/defense spending comparisons and so on) aside, it's the indirect threats that prove to be more problematic. As explained in this video, Iran has more options at its disposal than meets the eye, from leveraging its networks in various countries to act against US interests to blocking trade (for example the Strait of Hormuz, through which 25% of the world's oil and a third of its natural gas flows).
However, as also explained in this video, there are very strong forces at play (primarily forces originating from some of Iran's relatively few let's call them allies, for example China) which act as deterrents in light of the fact that in our deeply interconnected global economy, it's pretty much impossible for Iran to take meaningful action in a way that only affects the US.
