a slice as the world leader in the search and innovation, or any hope for us pressure to end israel's policy of starvation and killing and gaza. how is america changing? and where is it heading? a quizzical look at us politics, the bottom line revealing eco friendly solutions to come back to our planning on o g 0. what is the cost of the war between israel and they were continuing strikes and both countries are already draining their economies. and the global economy faces the threat of inflation. so what could be the outcome for longer conflict? this is inside story, the

hello and welcome to the program on the bulk of israel and iran are in the 2nd week of conflict as well as inflicting damage on each other. both countries are putting their economies on destroyed. israel has already spent billions of dollars on its war on gaza, but it's up to it's spending considerably whether it's largely at base the tax on a ron. and by using its advance defense system to shoot down incoming missiles, iran was already struggling with effective use of sanctions. and now its oil and gas facilities are being hit, which also means a hit to its economy. so kind of the 2 nations sustained this conflict, which is likely to be worst effected and will the conflict eventually inflict damage on the global economy. we'll put these questions to our guests, but 1st image and kim that tells us more along with devastation, will also comes but great expense is around repeatedly spend one point fi, $5000000000.00 in the 1st 2 days of attacks on their own. and this since estimated

to be spending around 725000000 a day. that's of to already spending $67500000000.00 by the end of 2020 full on it's. we're on garza, the cost of over the wrong is believed to be highest israel because of the use of its apples and sophisticated defense system. on top of those outgoings, much of the country's economy plays done when israel launched its 1st attacks on your own. before reopening 5 days late to the 500 h, and there they come to harm us and set things down. while we strike back offensively. we also protect the civilian population and we is, we've got a gradual reopening of the economy and the different areas are all in accordance with security considerations. but some businesses, unable to function on some stove tops, relocated investments have slowed and tourism has reduced overall x. but say is

ran is at greater risk of increasing its debt and growth and g, d p is full of costs to drop into wrong. thousands of people who've evacuated the city and the rolands for like sports, their estimated to be around hoff what they were before the conflict. the gun and some operations have been suspended in its gas fields as oil and gas facilities come under attack. the use of western sanctions on a wrong mean, its economy was already suffering with inflation plan, employment, and a lack of investment before the whole studies began pushing it in a week, a position to withstand the costs of conflict. the water is also expected to have a knock on effect on the global economy is energy prices become increasing the unstable of the discussions with the chair of the oil organization, the petroleum explosion, countries will impact that includes iran, iraq, and are you a russian president? putin says the group does not yet have to intervene to come to market,

which has to go a bone in these countries consciously restricts the production and supply of energy resources to the world market. now, however, according to the existing agreement, production is gradually increasing. but like i say it happens gradually in order not to create and balances in the global market. and in order to ensure, as we always say, in such cases, a balance between supply and demand and fair prices. iran is threatened to close the straight to full moves through which millions of barrels of oil poss every day, making up around a 5th of the world's energy supply. to do so, would immediately hike the price of oil and would also be a big blow to river on itself. the both countries, the war continues to damage, already bought that economy. israel says it will attack iran for as long as it takes an iran says it will end to tools when it's new. can it program while the fighting continues image and came back out to 0, the inside story,

the okay, well that's the, bring it out. guess in london, highly concept show is that you cannot make panelist and an investor in berlin. i have been to as professor of economics at the hebrew university and lancaster university. very well welcome to inside story. thanks for joining us. what if i can stop with you? because if i was chief of stuff estimate to the 1st 48 hours of operations against the wrong cost, $1500000000.00, it means is ro could now be spending $725000000.00 every day on direct military action. if you were an x ray, the government, economic advisor, what would you be advising benjamin netanyahu right now? well, it's very expensive and we're just are expensive in addition to the enormous a damage in, in life and, and,

and psychological effect. but um, is there any needs of resilience? country economically much will feed income is coming from the, the tech industry that is still operating very effectively in spite of the fact that many people are staying to tall. uh, just uh, during the last year while the war in gusts of continued israel, the firms and these rails sold several. busy unique courts, that means um, uh, uh, companies offer more than $1000000000.00 to a buyer single night of states and other countries. so his role is, is resilient. i would advise, i would, makes several, a consulting attempt on how to do the spending,

how much to increase the data, how much to reduce the public spending. but i would not tell these rarely government to stop the war. the public, it is rarely unlike by the way, the war and gods of many's riley's want to see a man to feed the craving to cnn, to feed and suggest the government that we should stop it. of the war in the to ryan any. ron is a completely different story. it's a completely right. it's the games the board across the street. yeah, well, we'll get on to it around shortly. but uh and uh, the car, let me and she to see both to and not the baby was now just joining. they joined us . he's a professor of practice in the economics of the middle east at brandeis university and well, welcome to you. not a good to see you, and thanks for joining the discussion. i wonder if i can put the next question to you, the not as you've just arrived. how would you describe it runs economy before this conflict with israel began because it to like israel had been fighting on several

fronts via it's proxies in syria and lebanon. a new yeah. been, but it also had, of course, being subject to many decades of sanctions. so the same for us to do the economy was already struggling with the 2 major issues. one of them was the pressure of the genomic sanctions for event over 2 decades, especially very intense tensions since 2012. the 2nd one was the mismanagement of the economy. the corruption, the perceptions of what the strides economic policy beach are actually very hard for as a result. so the economy ross is stagnant and poverty has more sending the wrong in the past few years. and even the economy is affiliated with the government and the stomach region of acknowledge that their leader class are

suffering. and the production in many sectors of the economy has been disrupted or by power shortages seem to do 6 weeks. and as a result of these pressures, the article is experiencing a number of his trucks, including a strike by truck drivers, which had disrupted the, the delivery of the votes through various parts of the country in the past 2 weeks, coming to the june 13th. that is very easy, a stride on the economy for very long road of economic time, or even before the conflict. uh uh, stopped uh, the con, setting to because before it was 1st wave of nicholas sanctions against the round in 2012. it was exporting a 2 and a half 1000000 barrels of oil a day that dropped around 400000 in 2019. but by last year it's exports almost entirely to china. had risen to $1500000.00 at a steep discount. uh, of course,

according to the latest date, uh, the com that's now in the midst of this war, around a 100000 barrels. i know the energy ex, but you'll be surprised to note. but that sounds like barely anything. a tool for ron right now. it says, obviously it depends on how long this low a number will last full. how long this boat was last, but i'll make to push back points to your previous comment. pages either doesn't tell it to sort of antique fragility. iran has been on the sanctions for so long that really it's become, i've the other side, big oil and gas exports has become very large the n for tom kick economy. and i think it's very easy to set aside and say, look, 20 years of economic sanctions. the front of me is going to crumble. i don't think so. we've now the economic sanctions look at what's happened with russia, where i think we're almost 37 round as clearly not being that successful in terms

of uh, you know, invest in making an economy. i think. so what you're dealing with a new ron, i would argue, is a plastic case of anti fraternity. i think it will surprise people, how strong that economy will will remain under the current level of pressure it's facing. you're quite correct with the oil and gas prices. and there isn't solid, you meant that part of the part of this is really responses to cut off the supply of energy to china. the biggest fix for turmoil and gas. uh, that's the biggest export market. but obviously it's going to depend on how long this continues and how it works, the central it because it becomes that essential, obviously old. that's it. all. but orland gas prices, the reason about 25 percent and the last 5 weeks from the, from those and this goes x, the central then create a we're going to see for the very body shop increases in the price of those 2

commodities or high autonomy back to intro, because i'm very keen to understand how the country's economy functions, what it seems to be on a permanent war foot take. i mean, israel is contending with the issue of mass reserve. it cools up, isn't it? i mean, these really ministry of finance estimate did that for every day involving a 100000 reserve. is that works out at about $27000000.00 a day. not to mention of course, the lack of civilian productivity because that's such a vast number of people are being pulled up to serve the country militarily. i mean, israel, how strong do you think by its own defense strategy? well, i think i think in disrupt lives to disrupt the economy. of the board of disruptive caught them is i myself, is, is stuck in berlin already have to come back to these right. there are no flights. the airport is, is shut down. um, but each row i have experienced similar periods starting with corporate by the way

in which people do not go to work. um and then again during the, the difficult time of war and goes up. and i think people prefer themselves to be productive also while staying the pool. okay. it's easier where when, when the main industry is not a, it's a production of hard to because of production of knowledge is a production of, um, technologies that are then developed and, and become a software program or, or a drug, a piece for various patients. and i think what happens now is with the people who work in these industry remain at home, they have good connection online to between them and, and they keep working, they keep working. and i think that keep working as long as they need to remain

a tall uh, not a presumably around does not have, particularly at the moment the, the similar kind of working at home tech based the economy. uh it does it. i mean, how is it ron able to insulate itself on these short term hopefully shocks which the 1st one i think mr. hardy is correct. that the economy's reach for die in over a claim. the economy is on the verge of collapse. both the people and the government have learned to adopt to these severe economic pressures and you're on has had the history of the going through the 8 years of you, it on your optima at the moment that the government itself has slowed down and for in some locations, even just stop to the internet services because you're worried about the penetration of uh, the side of the account in terms of service in the internet. so this is the

store at the acceptable speed. but i think only a small fraction of your on us can benefit from it is still in many or small businesses in the wrong a brick and mortar regular businesses temporarily have been interrupted because of what has happened. and people have had to move for centered families to other cities. if we move forward 50. so the conflict is prolonged at the, the pressure that he's going to testify onto people. some people rely on out of savings. and as i mentioned, many people are on the verge of poverty. so we're going to see severe, harsh, how will there to address late or transforming to uprising? i don't think they're using a direct process or guarantee that this will lead to the nest ability necessarily not just means to suffer it and really good one, right. i mean cod in

a situation like that such an extreme situation for ron, what lifelines are the for the country? it's estimated that it has 4 and reserves of around $33000000000.00. good. a wrong potentially draw all not well. so what are the risks in doing something like that in a time of crisis? so obviously, you know, the most countries lean on those far and reserves that fast uh, 1st quarter cool. when they're on the sort of significant type of pressure of, of the problem for iran is quite a lot of those farm is a compromised or under restriction. and because of those economic sanctions, but they love to us to sell, convince those type of restrictions between the 25 years of sanctions, the experts in that field, they've been doing a lot of volunteer and all kinds of other ways of, of sidestepping that sort of very restrictive regime and then they're going to have to rely on the support of the as eyes, the chinese, the russians,

and the others to support them at this time. but i think, you know, one of the small under estimate, it rained in resilience. um uh you know, these are folks who, who for 8 years against saddam hussein, more than a 1000000 people died. i mean, you know, the very core of the uranium character is actually resilience. and i think for, oh, you are asking about these really situation. the more on garza was not of the same do as this is, i mean, you just have to look at the footage coming out of the tennessee. this is a totally different response to any other response that is read has previously encountered. and therefore, to assume that these rated responses uh the, the average, the live pictures now from morris and base in new jersey where donald trump is set to return to the white

house will meet with a members of the national security council in the coming hours. he's a ride the in the last few minutes getting of marine won the presidential headed culture is heading up. the super says into air force one, which is the queen. fine. of course the for the presidential jeff, any get that he's on is always apple one. now i want to bring it into heidi jargon has started here in washington. heidi, this is going to be an interesting visits back to the white house for him where he meets his national security council. what do we think is going to happen there? or this right now, this is an unscheduled return early return back to washington from his goal for treat there in new jersey. and he is meeting with his national security council to ponder his options as far as whether the us will directly strike iran. of course it was trump himself that gave that self imposed deadline, which he now says as

a maximum of up to 2 weeks before he makes a decision. and he's trying to get a ron to come back to the negotiating table for our nuclear deal in order to avoid a us military strike. but there's a lot of action and happening at the same time because we also have reports of the military, pre positioning assets to potentially be able to execute in order to attack a ron very quickly. if trump were to make that decision, and i'm talking about a b 2 cells, bob or several of them that took off from an air force base in missouri and are headed toward one where the u. s. has a base there, and it's notable that these are the only types of aircraft in the world. and by the way, the us is the only country that possesses them, that is capable of carrying these massive bunker busting bonds. they weigh 13000 kilograms, and they're only owned by the us again. and they are the only known weapon that

could potentially penetrate the, for the mountain. the mountain under which the for the nuclear facility any ron is buried. now, israel has said that it has the ability to take out for though on its own, although many military analysts say that would simply be impossible without the u. s. assistance. and now it is up to trump whether or not to ultimately make that order to launch those self fighters carrying those bonds to potentially escalate those war into a much more dangerous and widespread conflict. we don't know what kind. busy of timeline is donald trump is thinking about when it comes to deploying those be to bottom is that you were just talking about. there is some suggest and he said that there is a 2 week period where he's going to be thinking about what happens. this also coincides with the fact that the european union is talking to iran and they put in particular, the iranian foreign minister about

a trunk sheet that those folks are going on. where is the diplomacy from the us right now? is the direct tools happening between iran and the us. so is this big left up to the europeans as well? you ross says there are no direct talks with the us and it's for a minister has been very clear that there he says there will not be talk to the us until is real stops. it's attacks on iran, but trump has that he will not ask israel to stop. and so really, any sort of forward movement has been on the european front, though trump has been clicked to try to dismiss those as well. saying that the only country that can solve this diplomatically is the us with iran. so as far as what actions are being taken, there was a little bit of conflicting information, conflicting claims with the white house, saying that that's a steve would call the us on going to the middle east has maintained correspondences with you. ron, even as israel has waged, it's bombardments,

if you run on. not confirming that though, and of course the us out the previously scheduled nuclear talks were called off immediately after israel launched its 1st wave of attacks. so it seems like there is really not much for a movement on diplomacy there. although europe, which has felt very much sideline, has indeed been sideline from this, from the beginning, is trying to make some sort of progress. but really without the us involvement, it seems like that's the major piece that's missing at this point is worth reminding of you is the j. c. p. o, a. the joint comprehensive plan of action was the nuclear deal. the was signed between wrong and the us under the above the administration, it was in place. it was working, it was being hit to by all parties. and that it was donald trump, that actually pulled the united states even electric out of that deal. so there was a deal on the table, it would have been very simple for j barton, for example,

to actually put that deal back in place. he didn't do that. and now where the situation where that deal is seemingly being re negotiated again. but like you say, hiking, that's not really happening right now between the us and iran. but what is happening is this question of presidential or far as he does. donald trump have the presidential authority directly to mount an attack corner on using those b 2 bomb is that you were talking about a will of history of recent history is an indicator. yes, he does have that authority because previous president have taken that unilateral authority in issuing u. s. military strikes against 4 and targets without going to congress. and that is the, it, what's been in practice ever since world war 2, because actually hasn't been since world war 2. the congress has declared war on another country, which if you really strictly read the us constitution that is

a prerequisite for military action. but again, practice has not been that case, and trump certainly has, has made it clear that he intends to take action if he so chooses, and only if he alone so chooses. that doesn't mean that all congress is happy with that. so there are a few voices of dissent among his own republican party that have tried to craft legislation, teaming up with democrats, and 5 to curb his authority on an issue, a, a, a on you to laterally issuing a stripe on iran. thomas massey, a representative from louisiana to republic, and in fact, said on ex, quote, this is not our wor, certainly many isolationist, among the mag, a supporters of donald trump, who do not want the us to get further involved in this. but again, as far as whether or not he's able to, whether or not trump is able to call for a strike on his own history would very much say yes. how does your culture they're

reporting from washington d. c. now how does solve, who to joins is from george's capital, she's in a month because it's rose, governments has been out 0 from me posting inside israel and the occupied west by. you're listening to heidi that talk about the diplomacy, lack called diplomacy that's taken place. um, now the iranian fm has said that the tax from israel need to stop before iran comes back to the negotiating type of. so that's right, that's exactly what the audience have said. and let's not forget what the don't the and president has said that by international law, the audience can have some sort of civilian nuclear program under the guidelines of international law. and the i a e, a. but these really is, are saying that they don't want any sort of capabilities that they could possibly have in the future. they don't want them to acquire nuclear weapons or be able to

create a nuclear bomb. that's the same sentiments of the americans are echoing, which is what all of this is surrounding. are the americans going to be involved in this war? and it's in you all who have said that these realize are going to continue this pro long campaign with or without american support. and it's really official speaking anonymously to was really media have said that the us is heavily weighing the involvement because the negotiations weren't exactly going well. so all eyes are going to be on washington to see what president trump has to say. but at the same time, these really prime minister is currently huddling his top ministers and security chief to discuss what they are going to do. moving forward. they've already said this is going to be a pro, long's kind of war. so it wasn't just going to be a few days saying that they want to destroy all of their capabilities, so they've been attacking weapons arsenals. they've been attacking drone sites. and they've also said that they've destroyed it on the in plains and just tell her that live for us and i'm on now just before i go,

remind to about top developments of this hour. the conflict between israel and iran is it is 9 state is really will pains of struck the rodney in the city of a vase, the border with iraq. and these are some of the late to seeing if i was this done. provence is riley and billing services. that fragments have an interest, have to drone, fell on a residential building in bid, shan. and then all these really, all me says is intercepted around $400.00 iranian trends since a conflict began and the conflict between iran and his brothers told the agenda at a meeting of the organization of islamic corporation in stumble around in foreign, minnesota, above a rock. she has said to run remains open to dialogue with us, but israel must stop. it's a textbook. and the u. s. military is reportedly booth a, b 2 still follows from that base to the pacific island of guam. the aircraft to equipped to carry bunk combusting bones capable of striking talk is up to 60 meters

underground. that's it from me and run con and you can find more information on websites out. is there a dot com the it is murder. when you throw a fire bomb into someone's home, that is significant in numbers that insignificant, ideologically, that is significant, even as a crime. that's very significant by dictating the government's the fact of policy that was shown up to tom. so the red flag on our to 0 this is a fluid pancreatic store in these uncertainty, and doubtless, there is a place for more fair you're witnessing on babylon loves narrative, trillion dollar monopolies with an order since the largest tech company lines that

this tech authoritarianism in a single in a kid is an exercise in the office designed for international and some of these user organizations help the manufacturer, public consent for a genocidal where the listening post d coats the media on out to say about the latest news. at least 24 is riley's, have been killed at the 19000 israelis file for compensation because of damage to that property. with detailed coverage, this meeting was joined by 7 countries. there is a very wide range of views on this conflict. the world is stopped 3 devices from around the world. this riley says a message that told me i must not return to an era where political violence silences it's democracy. the

hey the, the, the, the, the, [000:00:00;00] the hello my mancha and this has been use our life and the coming up in the next 60 minutes is all alone choose a series of strikes across the wrong kind of cat and targets. i need to be