by Bill O’Grady
This report is an update to a similarly titled piece published in 2013 (see WGR, 10/7/2013, Détente with Iran?). The primary impetus for this update comes from a recent article by Michael Doran outlining President Obama’s “secret” Iran strategy, but similar themes have also been offered by other strategists.
In this report, we will delve further into what appears to be an evolving policy change by the U.S. with Iran, and discuss the basic goals of the U.S. and Iran. With this background, we will examine America’s alternatives to achieving our aims in the region. A full examination of U.S. difficulties in making a historic change in policy with Iran will follow. From there, we will discuss the recent pattern of policy in the region and how it supports the notion that improving relations with Iran is probably the reason for this pattern. As always, we will conclude with market ramifications.