Why doesn’t Iran back down? Iraq, Oil and Deterrence

Iran is unlikely to give in to US and Israeli threats because the political elite in Tehran have staked their reputation on the nuclear issue and the Iranian’s do not believe that either the United States or Israel has either the ability or the willingness to attack their facilities. If Iran has miscalculated then there is the potential that the Middle East may erupt into an enormously damaging international conflict that will have significant ramifications for the international economic system.