The U.S.-Iran War and Its Economic Fallout | The High Top

In this episode of The High Top, Philip Luck, Director of the Economics Program and Scholl Chair in International Business at CSIS, joins Jon B. Alterman, Brzezinski Chair in Global Security and Geostrategy, to examine how the recent U.S.-Iran war is reshaping the economic foundations of American strategy. Their conversation explores how governments across the Gulf and the broader Global South are recalibrating their relationships with Washington, why many are accelerating efforts to diversify their partnerships, and what policymakers still misunderstand about the role of economic statecraft in advancing U.S. interests. 

Across much of the Global South, countries have concluded that they do not have to choose between the United States and China, and the war with Iran has reinforced the value of maintaining multiple strategic options. In the Gulf, governments continue to see the United States as an indispensable security partner, but many also emerged from the conflict feeling inadequately protected and are increasingly deepening ties with China, Europe, India, and others. Economic tools such as sanctions and tariffs are most effective when they align incentives rather than rely on coercion, making empathy and an understanding of partners' interests essential to successful statecraft. 

To explore how economics is becoming an increasingly central arena of geopolitical competition, tune in to Jon and Phil's full conversation. 

This event is made possible through general support to the Center for Strategic and International Studies.