Although the system would have had only 10 interceptors, far too few to thwart a Russian missile attack, Russia felt threatened by the system. So Obama has accommodated Russian pressure, at the expense of our allies who took risks to help defend the region.
Obama's decision comes on the heels of Russia announcing it won't support sanctions against Iran. Perhaps with this gift, Russia will change its mind.
This incident also highlights that bombing Iran is not just the only viable alternative to stopping its nuclear activities, but that the price we are paying to try to stop them through diplomacy keeps on growing.
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