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With soaring inflation, chronic unemployment and rampant poverty, Iran is nobody’s picture of economic health. So when the International Monetary Fund (IMF) issued its latest working paper on Iran last month, the rosy assessment contained therein raised more than a few eyebrows.

That study, “Iran - The Chronicles of the Subsidy Reform,” heaped praise on the regime in Tehran for launching a raft of much-needed rollbacks of costly subsidies on everything from energy to foodstuffs. This effort, the report says approvingly, “has created a unique opportunity for Iran to reform its economy and accelerate economic growth and development.”

That rosy view has gained quite a bit of resonance of late. In June, no less prominent a publication than the Economist - using the IMF’s preliminary conclusions as a point of departure - lauded the “exemplary” steps Iran has taken in commencing structural reforms to its economic sector. All of this, of course, must be music to the ears of Iran’s ayatollahs, who in recent months have redoubled their efforts to convince the world that the country is thriving despite the West’s best efforts to ratchet up the costs associated with its nuclear program.

But there’s good reason to think the opposite.

On August 18th, after months of dithering, President Obama finally took a firm stand on the unrest roiling Syria when he announced that “the time has come for President Asad to step aside.” By doing so, the United States has belatedly brought itself in line with the growing number of nations that have abandoned the Syrian dictator as a result of the brutal five-month-old crackdown he has waged against his own people.

But, now that America is well and truly engaged, is there anything that we can actually do to speed Assad’s ouster? In point of fact, there is. Contrary to conventional wisdom, the United States has at least two means at its disposal to pressure the Syrian government—if only it possesses the political will to use them.

Make no mistake: U.N. Security Council sanctions and additional U.S. and European pressures are hurting Iran. Tehran is having a harder time importing food and other key goods, its foreign investment is drying up, financial firms and shipping companies are turning down its business, and its central bank is running short of hard currency.

What sanctions are not doing, however, is achieving their goal - to persuade Tehran to abandon its pursuit of nuclear weapons. Not only is Iran making more progress in its nuclear program, it's acting more boldly in its region, threatening U.S. interests while distributing weapons that are killing U.S. troops. Because neither current nor additional sanctions alone will deter Tehran, and because a nuclear Iran would be a disaster for the United States and the world, Washington must seriously consider a military option.

Are sanctions capable of derailing Tehran's nuclear drive? Some skeptics reject such measures altogether, preferring to deal with Tehran by either accommodation or containment. Others point to the spotty historical record of sanctions in altering state behavior in arguing that they will similarly fall short of forcing the ayatollahs to rethink their long-standing nuclear ambitions. For example, sanctions were found to be successful in only a third of the 105 instances in which they were applied between World War I and the end of the Cold War.

As the past year has shown, however, Tehran may well turn out to be the exception to the rule—but only if the Obama administration (and Western governments more generally) make swift and skillful use of the economic and strategic means at their disposal.

Are Washington and Tehran headed for a showdown?

For much of the past decade, conventional wisdom has held that Iran’s dogged pursuit of a nuclear capability – carried out in spite of mounting pressure from the international community – will ultimately become a casus belli for Washington. Early on in his tenure, President George W. Bush even went so far as to declare that the U.S. “will not tolerate” Iran arming itself with nuclear weapons, and to indicate that he was prepared to use force to prevent it. Despite its more dulcet diplomatic tones toward Iran, the administration of Barack Obama has grudgingly repeated much the same thing since taking office: that all options, including the use of force, remain on the table for dealing with Iran’s nuclear ambitions. Still, some eight years into the international standoff over Iran’s atomic program, it has become clear that a military option for dealing with an Iranian bomb, if not out of the question entirely, is an exceedingly remote possibility.

That does not mean, however, that Tehran and Washington won’t soon find themselves embroiled in a war. Indeed, Iran’s escalating activity on the territory of its western neighbor, Iraq, could end up becoming the real catalyst for a U.S.-Iranian conflict.