The mullahs in Tehran are running out of patience, or perhaps they are running out of rope. Reports from Iran indicate a sharp uptick in political executions, with dissidents, journalists, and protesters being hanged at an alarming rate. The British government, in a rare display of diplomatic urgency, has demanded an emergency session of the United Nations Security Council.
But as a sceptic of government intervention, one must ask: will this be anything more than a theatrical gesture? The market for human rights has never been particularly liquid, and Iran’s theocratic regime has consistently defied international pressure. The real question is whether Westminster’s call for action will trigger any economic consequences.
Sanctions have been tried before, and they have done little to stem the flow of oil or the regime’s access to hard currency. Perhaps the only effective levee against this tide of brutality would be a collapse in the rial, forcing the regime to choose between survival and oppression. But for now, the gilt market is unmoved, and capital flight from Iran remains a trickle rather than a flood.
The bottom line is this: without a credible threat to the regime’s financial stability, the gallows will keep swinging.
