Nation: The Economy Becomes a Hostage

Troubles in Iran threaten higher energy prices and slower growth

Beyond the fate of the hostages in Tehran, a new worry loomed last week: Was the energy-squeezed and inflation-dazed world economy about to fall victim to the crisis between the U.S. and Iran? Though the U.S.'s cutoff of imports from Iran and its seizure of that nation's assets in U.S. banks was a necessary response to irrational provocations, the actions also transformed petrodollars and petroleum itself into even more dangerous weapons in economic brinksmanship. That, in turn, added a new and alarming element to the crisis.


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