In 1971, the US dislodged the backing of its currency to the country's gold reserves and since then major world currencies especially the US dollar are supported by a steady flow of energy (oil & gas) throughout the world. 

July 16, 2010 (Hamsayeh.Net) - A British think-tank says an Israeli misadventure in the form of aerial strikes against Iranian nuclear facilities would most likely lead to long-term regional and global consequences.

The British Oxford Research Group claiming to be an independent research agency published its latest analysis on the likelihood of a US or Israeli attacks against Iran’s vastly scattered nuclear centers. The paper reported an immediate result after an aerial strike against Iranian nuclear sites would be felt through increase in global oil prices, which could lead to speedy collapse of many economies.

The report says, Israelis would not be able to avoid a long-protracted war that could drag on over several years because a single attack on a nuclear plant would fail to stop Iran’s nuclear program. Moreover, such an action is bound to embroil Iranians’ nationalistic fervor that could lead to widespread support for a crash program towards weaponization of the country’s atomic program. ‘An Iranian administration under attack would experience considerable national unity and would work rapidly to redevelop its weapons programs, withdrawing from the NPT and prioritizing nuclear weapons,’ the report said. 

In the aftermath of an attack on Iranian nuclear facilities, Iran could target oil tankers in the Persian Gulf and beyond or stage missile attacks against oil or gas processing facilities alongside the coastal regions thus bringing the world economy to a standstill.

The British think tank acknowledges Iran’s ability to stage asymmetrical warfare in the region including in Iraq and Afghanistan where mostly US troops continue on with expensive yet futile war games with no end in sight.

Western industrial economies in North America and Europe are currently grappling with a long recession due to massive amounts of debt generated over the past several decades. United States and European countries were able to sustain a neoliberal economic recipe because they had access to inexpensive and abundant energy flowing across the globe.

In 1971, the US dislodged the backing of its currency to the country's gold reserves and since then major world currencies especially the US dollar are supported by a steady flow of energy (oil & gas) throughout the world.