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But firing that missle escalates the conflict rather than help move to a settlement. No country will accept an immediate neighbour that poses a threat to their core national interest. The Soviets was forced to withdraw their missles from Cuba for the very same reason.
We have a doctrine that is common knowledge - stop our water supply and it will be a devasting pre-emptive strike. There is no second guessing. No settlement or negotiation.
Iran has no business playing in Saudi’s backyard. Anywhere else is fair game.
With these constraints, the provision of such missile technology to proxy players is a valid optimum strategy.
It is also a proven strategy with which the Iranians have a lot of experience with. Note their provision of similar technology to Hezbollah and the Palestinians for use against Israel. While we cannot preclude a MH17 type incident from happening, I think the Iranians have the necessary experience to use this strategy without triggering an outright war.