Iran Defence & Security Report Q4 2014
We expect that Iran will increase its defence expenditure in 2014 by 7.1% in US dollar terms, bringing total spending to USD10.3bn or 2.2% of GDP. We acknowledge that the country's nuclear activities will remain a point of contention with the international community, but believe that ongoing talks between Iran and Western governments have the potential to de-escalate this issue. That said, should talks fail, and if Iran were thought to be approaching the point of successfully testing a nuclear weapon, we believe an Israeli or American strike on the country's nuclear facilities would become increasingly likely.
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