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Economic sanctions have often been considered an important tool for disciplining adversaries and compelling them to offer important concessions. History, however, suggests otherwise. Economic penalties rarely cause states to abandon important national assets. After decades of struggling under punitive financial measures, Iran has persisted with its objectionable policies ranging from terrorism to proliferation of weapons of mass destruction. All this suggests that ideological regimes that put a premium on their political priorities and which are seemingly insensitive to the mounting costs of their belligerence may not be suitable candidates for the type of cost‐benefit analysis that sanctions diplomacy invites.

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Dr. Takeyh is a senior fellow at the Council on Foreign Relations. Dr. Gvosdev is a senior fellow at the Nixon Center. The following is adapted from the conclusion of their recent book, The Receding Shadow of the Prophet: The Rise and Fall of Radical Political Islam (Praeger, 2004), reproduced with permission of Greenwood Publishing Group, Inc., Westport, CT.