The Politics of Fear: How Netanyahu’s Iran Nuclear Claims Became a Global Power Game

  • Published Date: 16th Jun, 2025
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By Dr. Pooyan Ghamari

 

For more than two decades, Israeli Prime Minister Benjamin Netanyahu has issued one consistent warning to the world: Iran is on the brink of building a nuclear bomb. He has repeated this message from the podiums of the United Nations, the halls of the U.S. Congress, and global press briefings — always with urgency, and always with certainty.

And yet, as of 2025, Iran has no nuclear weapon.

Despite thousands of inspections by the International Atomic Energy Agency (IAEA), despite years of heavy sanctions, cyber sabotage, assassinations, and surveillance, the feared Iranian bomb has not materialized. So the question must be asked — was the threat real, or was it a calculated geopolitical tool?

The Timeline of Alarm: A Strategic Refrain

Since at least 2003, Netanyahu has been warning the world that Iran is only months away from a nuclear breakout. Here are just a few of his most notable declarations:

  • 2009: Netanyahu warned the Obama administration that Iran was nearing nuclear capability.

  • 2012: In his now-infamous UN speech, he presented a cartoon bomb illustration and dramatically drew a “red line” on it — predicting Iran would be capable of producing a bomb by mid-2013.

  • 2015: He fiercely opposed the JCPOA (Joint Comprehensive Plan of Action), calling it a historic mistake that would “pave Iran’s path to a bomb.”

  • 2018: Netanyahu unveiled what he called a secret Iranian nuclear archive — already known to intelligence agencies — and used it to argue for U.S. withdrawal from the Iran deal.

  • 2021–2024: Despite the IAEA confirming Iran had not weaponized its enriched uranium, Netanyahu continued asserting that Iran was “weeks away” from developing a bomb.

These claims often came without evidence, or with selective interpretation of intelligence, but they shaped global policy. They also reinforced Netanyahu’s image as the lone sentinel standing against existential threats to Israel — a role he carefully cultivated both domestically and abroad.

Why Keep Repeating It?

Netanyahu is not careless. His repetition of the Iran nuclear narrative is deliberate — and it serves multiple strategic objectives:

1. Consolidating Domestic Power

Framing Israel’s existence as constantly under threat keeps the public focused outward — not inward. During times of domestic political scandal or electoral vulnerability, raising the Iranian threat often reunifies political blocs, silences opposition, and reignites nationalistic sentiment. The external enemy becomes a convenient distraction from internal challenges.

2. Controlling the Regional Chessboard

Israel’s regional dominance depends heavily on being perceived as the West’s frontline ally in the Middle East. By continually warning of Iran’s nuclear intentions, Netanyahu ensures that Israel remains indispensable to U.S. military and intelligence priorities, thereby securing billions in aid, advanced weapons systems, and diplomatic backing.

3. Blocking Diplomatic Paths

The Iran nuclear deal was never just about uranium. It was about reintegration of Iran into the global economy — a prospect that Netanyahu sees as a threat. A normalized Iran could challenge Israeli dominance in regional diplomacy, energy markets, and influence over the West. By derailing diplomacy, Netanyahu protects strategic exclusivity.

4. Weaponizing Fear for Leverage

Fear is the currency of control. By positioning Israel as constantly under existential threat, Netanyahu is able to justify pre-emptive military actions, lobby aggressively in Washington, and frame criticism of Israeli policy — even unrelated to Iran — as dangerously naïve or disloyal.

Corruption, Cronyism, and Financial Gain

But the Iran narrative is not just about geopolitics. It is also about profit, corruption, and elite enrichment. Each time Netanyahu reignites fear of war or nuclear breakout, the consequences ripple through the global financial system — and they’re not accidental.

  • Defense contractors and weapons manufacturers see their stock prices rise immediately following Netanyahu’s speeches. Companies tied to missile systems, cyber warfare, and surveillance technology — many with direct lobbying ties to Israeli and U.S. officials — benefit from every surge in tension.

  • Israeli insiders, including political allies, military-industrial stakeholders, and Netanyahu’s extended network, are often positioned to gain from arms deals, budget inflations, and security contracts.

  • Oil markets respond predictably to Netanyahu’s warnings. Every claim of conflict spikes prices, benefiting hedge funds, energy speculators, and even state-controlled actors who are prepared to capitalize.

More disturbingly, timing often overlaps between political events and financial maneuvers. Investigative reporters have identified patterns where influential groups trade on defense and energy stocks just before major policy speeches — a pattern that suggests coordinated economic manipulation. This has raised alarms not just in Israel, but across global watchdog institutions.

While the public is distracted by fear, a select class profits — repeatedly and silently.

The Cost of Crying Wolf

What’s most dangerous is that this isn’t just a political tactic — it has real-world consequences:

  • Diplomatic fatigue: Over time, exaggerated warnings lose credibility. Allies grow skeptical. Intelligence agencies become cautious. This dilutes genuine security concerns and hampers coordination when real threats do emerge.

  • Empowering Iran’s hardliners: Ironically, Netanyahu’s aggressiveness weakens moderates in Iran. When diplomacy is undermined and threats are constant, Tehran’s internal politics swing toward militarization and secrecy, rather than cooperation.

  • Triggering arms races: Repeated claims of imminent nuclear breakout push countries like Saudi Arabia, Egypt, and Turkey to reconsider their own strategic programs. The Middle East risks becoming a region not of peacebuilding but of proliferation.

  • Risking war: By setting red lines and treating unverified intelligence as fact, Netanyahu’s strategy edges the region toward conflict — with civilians, economies, and future generations bearing the cost.

The Global Echo Chamber

This isn’t just about Israel and Iran. It’s about how fear narratives manipulate the West, particularly the U.S. and Europe. Netanyahu has mastered the art of speaking directly to American fears — evoking 9/11, Islamic extremism, and the Holocaust to anchor his narrative in Western psychology.

And it works.

Every time he warns of Iran, media headlines shift. Politicians rush to pledge loyalty. Sanctions are strengthened, arms sales increase, and diplomatic windows close.

The result? The U.S. finds itself entangled in a narrative it no longer controls, dragged into regional conflicts and tensions that benefit few outside the weapons manufacturers, ideological hardliners, and power brokers.

Europe, too, is caught in the bind — torn between honoring nuclear agreements (like the JCPOA) and appeasing Washington and Tel Aviv. This weakens European strategic autonomy and undermines EU diplomacy as a serious global force.

The Credibility Crisis

Even within Israel’s own defense community, dissent is growing. Former Mossad and Shin Bet officials have expressed concerns that Netanyahu is distorting intelligence for political ends. The weaponization of truth, they argue, erodes Israel’s long-term security more than Iran’s enrichment programs.

Meanwhile, the IAEA continues to confirm that, while Iran’s nuclear program has expanded, there is still no conclusive evidence of an active weaponization effort.

The cycle continues — driven not by truth, but by the benefits of belief.

What the World Must Now Realize

It is no longer sufficient to ask whether Iran poses a nuclear threat.

The question must now be: Who benefits from the perception of that threat — and at what cost?

The answer is uncomfortable but clear.

By playing a high-stakes psychological game with the world’s most powerful nations, Netanyahu has not only shaped Israeli policy — he has effectively co-authored Western foreign policy.

The damage is not hypothetical.

It is visible in broken diplomatic deals, lost economic opportunities, rising regional tensions, and the erosion of truth.

From Fear to Strategic Maturity

The time has come for the U.S., Europe, and the broader international community to move beyond fear-based diplomacy.

The world cannot afford another decade of being manipulated by theatrics masquerading as strategy.

If global decision-makers are to reclaim agency, they must demand verifiable intelligence, measured responses, and a return to evidence-based policy.

Because fear is easy to sell.

But freedom — and truth — demand courage.





FAQ's

Q1: How do war narratives affect global stock markets?

A: Fear of conflict increases demand for defense stocks, oil futures, and precious metals. Markets respond immediately, often driving up share prices of weapons manufacturers and energy companies.

Q2: Who benefits most financially from increased tensions in the Middle East?

A: Defense contractors, oil companies, arms exporters, intelligence technology firms, and political elites with stock exposure or lobbying ties benefit enormously.

Q3: How does Netanyahu’s recurring “Iranian bomb” narrative impact financial markets?

A: Each claim fuels investor panic, driving capital into “safe haven” assets like gold, U.S. treasuries, and defense-related stocks — generating windfalls for those positioned early.

Q4: Do politicians personally profit from war-related events?

A: Many do indirectly. Political allies, donors, and family-run businesses often benefit through contracts, insider trading, or market timing.

Q5: What role do lobbyists play in turning war narratives into money?

A: Lobbyists amplify fear to secure bigger defense budgets, influence foreign policy, and channel government contracts to clients in the military-industrial complex.

Q6: Are there historical patterns of such manipulation?

A: Yes. Iraq (2003), Libya (2011), and Syria (2015) all followed exaggerated WMD or terrorism claims, leading to military action and massive profits for defense and oil-linked industries.

Q7: What companies profit most from Netanyahu’s speeches?

A: Israeli and American firms like Elbit Systems, Lockheed Martin, Raytheon, Rafael, and cybersecurity companies often see immediate stock bumps after such rhetoric.

Q8: How do oil prices react to war threats?

A: They usually spike. Middle East tension threatens supply lines, so investors raise prices preemptively, benefiting energy giants and commodity traders.

Q9: Can politicians or their allies legally invest in these markets?

A: Yes — through blind trusts, family accounts, or proxies, many legally trade defense and energy stocks. Insider timing remains hard to prove but easy to exploit.

Q10: How does this affect ordinary people?

A: While elites profit, civilians bear the cost through inflation, higher fuel prices, disrupted markets, and regional instability that harms trade and safety.

Q11: Why does the public keep believing these threats?

A: Fear is effective. Media often echoes government claims without verifying facts, creating a feedback loop of alarmism that conditions public opinion.

Q12: How are defense budgets manipulated through these narratives?

A: Each time the threat is revived, governments justify budget increases — often pushed through without scrutiny. This leads to long-term procurement deals worth billions.

Q13: Do think tanks contribute to this system?

A: Yes. Many receive funding from defense firms and publish hawkish analysis that supports military spending, appearing “independent” while serving private interests.

Q14: Are these tactics unique to Israel?

A: No. This model is used by the U.S., Russia, China, and others. But Netanyahu has been a particularly consistent and strategic user of the “existential threat” method.

Q15: Has Netanyahu ever been accused of corruption?

A: Yes. He has faced multiple legal investigations and charges, including bribery and fraud. His survival often correlates with ramped-up external threat rhetoric.

Q16: How do media outlets profit from war hype?

A: War drives traffic. Sensational headlines attract clicks, boost ad revenue, and encourage continuous coverage of conflict, whether or not verified.

Q17: What’s the connection between war and the tech sector?

A: Cybersecurity firms thrive on instability. Israeli and Western firms win contracts to “protect digital infrastructure” from theoretical or manufactured threats.

Q18: What’s a warlord in the financial sense?

A: It refers to politicians or private actors who engineer or exploit conflict narratives to gain financial, political, or territorial control — without firing a shot.

Q19: Are financial regulators able to prevent abuse?

A: Rarely. Many trades are legal, and proving intent is difficult. Political protection often shields perpetrators from investigation.

Q20: Do defense companies fund political campaigns?

A: Yes. In the U.S., for example, top defense firms are major donors. Politicians who echo war rhetoric receive campaign financing and career support.

Q21: Is this insider trading?

A: Not always by legal definition. But if politicians or their allies act on privileged information before public statements, it can be ethically and legally questionable.

Q22: How does Netanyahu’s Iran focus help silence internal criticism?

A: A country at “existential risk” discourages dissent. It unites voters under fear and makes criticism of leadership seem unpatriotic or naive.

Q23: What happens when peace is achieved?

A: The financial incentive disappears. Peace lowers defense spending and oil prices — threatening the profits of those dependent on perpetual crisis.

Q24: How do hedge funds profit from conflict narratives?

A: By shorting or buying stocks, currencies, and commodities ahead of major speeches or events. Some even fund research to predict conflict cycles.

Q25: What role do secret intelligence leaks play?

A: They’re sometimes selectively released to justify action or create a media cycle. Traders with early access can profit from the volatility they cause.

Q26: Is Iran truly close to building a bomb?

A: No public evidence confirms this. Iran is enriching uranium, but IAEA reports repeatedly show no confirmed weaponization program.

Q27: Why haven’t Western leaders fully challenged Netanyahu’s claims?

A: Politics. Challenging him risks alienating pro-Israel voters, donors, and lobbies — especially in the U.S., where bipartisan alignment with Israel remains strong.

Q28: How are the youth of the region affected?

A: They inherit fear, instability, and economic stagnation — while elites send their own children abroad to study and thrive.

Q29: Can this system be dismantled?

A: Only through transparency, independent media, whistleblower protection, and voter awareness. Accountability must come from within democratic systems.

Q30: What is the deeper consequence of this manipulation?

A: It erodes trust in democracy, inflames hate, weakens global cooperation, and turns war — the most destructive human activity — into just another business model.
Date: 16th Jun, 2025

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