On Friday, Nouriel Roubini, the economist who called the 2008 financial crisis, cautioned that President Donald Trump is more likely to intensify the U.S. conflict with Iran rather than seek a quick resolution.
Trump May Choose Escalation Over Ceasefire
Roubini dismissed the notion that Trump is searching for an “off-ramp” to end the war, despite market optimism around a potential peace deal, he told CNBC at the Ambrosetti Forum in Cernobbio, Italy.
“If he chickens out right now, he loses credibility. He lost the war,” Roubini said, adding that such a move could hurt Trump’s chances in upcoming elections.
A Binary Outcome With High Stakes
Roubini described the situation as a high-risk, high-reward scenario.
On one hand, escalation — potentially including targeting key Iranian assets and intensifying military operations — could weaken Iran’s leadership and deliver a geopolitical win.
“My argument is that, counterintuitively, he’s going to decide to escalate,” Roubini said.
On the other hand, failure could trigger severe global consequences …
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