The decision to withdraw from the Iran nuclear agreement and to reinstate sanctions against the country could have significant foreign policy effects in the U.S. The decision announced Tuesday by the Trump administration could further strain the U.S. relationship with the European Union, which is party to the 2016 agreement along with the five members of the U.N. Security Council. It could also escalate the current conflict between Israel and Iran, and potentially isolate the U.S. globally.

“It’s high-risk,” said Philip Nichols, Wharton professor of legal studies and business ethics. “President Trump is rolling the dice. And risk means instability. It’s also clear that the U.S. can no longer be seen as an impartial actor in the Middle East. The world is going to be looking for the honest broker now. The U.S.…