If the intended aim of the new round of U.S. sanctions were to change Iran’s behavior, it already has. Just not the behavior the Trump team had in mind—Iran abandoning its pursuit of pro-market economic reforms. President Hassan Rouhani, who was elected twice, in 2013 and 2017, on a platform of liberal economic reforms, has piece by piece put aside his reform agenda. Because of the economic havoc wreaked by the re-imposition of U.S. sanctions, he finds himself in the odd position of overseeing price controls, punishing commodity hoarders, subsidizing imports of a variety of goods, including mobile phones, and has lost the most liberal members of his economic team

In Iran, officials blame the sanctions for the economic crisis, while in the United States, officials blame the Iranian government. There is no denying that Iran’s economy has serious problems that have nothing to do with sanctions, but there is no doubt that the current crisis is the result of the sanctions. The same economy was able to expand by 18 percent in the two years that sanctions were partially lifted as a result of the 2015 nuclear deal. However, regime-change advocates in the United States who hope that sanctions will precipitate economic collapse will be disappointed. Economies do not collapse—they shrink. How far Iran’s economy will shrink and how Iran’s leaders and its people respond to the contraction are the real questions. Will the economy bottom out in 2019 or continue to slide for several more years? 

The brazen murder of Washington Post journalist and U.S. resident Jamal Khashoggi has elicited that rarest of reactions in contemporary U.S. politics: bipartisan consensus. President Trump’s administration, however, has adopted a notably restrained response thus far. US administration officials reportedly worry that by applying too much pressure on the kingdom, they could inadvertently “jeopardize plans to enlist Saudi help to avoid disrupting the oil market.” The Trump administration has been counting on Saudi Arabia, as the world’s swing producer, to increase its oil production to help offset the anticipated loss of Iranian supply come November 5, when sanctions lifted under the Iran nuclear deal are re-imposed. While Saudi Arabia does have the ability to impose costs on the United States if it is displeased by forceful action on the Khashoggi affair, Saudi threats to sabotage President Trump’s Iran policy through manipulating the oil market do not appear credible

Following Iraq's "inconclusive" national election on May 12, the United States tried hard to guarantee a second term for former Prime Minister Haider al-Abadi. Washington's special envoy Brett McGurk spent months talking Iraqi politicians into following the American blueprint aimed at isolating Tehran and "keeping anyone friendly to Iran out of power." But it was all in vain. The US failed to place its desired candidates in the important positions of prime minister, president and speaker of the parliament. Instead, Iran's Iraqi allies got their way. All three positions were filled with new faces who would not allow Iraq to turn its back to Iran.

Iran is primarily concerned with preserving Syria’s prominent role in the Axis of Resistance and its overarching goal of securing its regional deterrence. Accordingly, the collapse of Damascus was intolerable because it would have negatively affected Iran and its allies in the region. This includes securing supply routes to Lebanon; enhancing the deterrence capabilities and operational experience of the Axis of Resistance against Israel and the United States, especially with Trump’s renewed hostility; and balancing Turkey in northern Syria. In addition, preserving Syria’s significant position within the Axis of Resistance serves to showcase Iran’s effectiveness in supporting allies and in its leadership role in the axis.

What would the repercussions be of the U.S. pulling its support of Saudi Arabia? What is driving U.S. policy towards Saudi Arabia and what impacts do these policies have for America’s standing in the region and globally? Harvard’s Dr. Payam Mohseni and Dr. Qanta Ahmed weigh the pros and cons.

For much of Iran's modern history, the Iranian people have been divided on issues such as traditionalism versus modernity and the nature of their relationship with the West. These divisions only highlight the need for organic political change to allow society to find common ground. However, outside political interventionism has been a constant setback, whether during the Constitutional Revolution period, the 1953 US/UK coup, or now with Trump's exhortations and actions.

Turkey is facing a new conundrum in Syria. While its main concern is the areas held by the Syrian Democratic Forces (SDF), due to the latter’s links with the Kurdistan Workers Party (PKK), Turkey has had to prioritize Idlib because of the looming attack on the province, which could jeopardize Ankara's presence in northern Syria. Iran, on the other hand, is prioritizing pushback against the United States east of the Euphrates. Tehran’s objective is to restore the status quo in Idlib — under Turkey’s influence — as well as northeastern Syria, where US forces are based. Against this backdrop, a strategic overhaul of Iranian-Turkish cooperation in Syria is not unprecedented.

Although U.S. President Donald Trump has hurt the Iranian economy, the unexpected depth of the rial’s decline owes less to U.S. policy than to poor decision-making in Tehran and structural weaknesses in Iran’s economy. A proper understanding of the factors that deepened the crisis suggests that the country’s acute hardships may ease or disappear as Iran adjusts to the new situation. Iran’s foreign exchange market needs to be understood on its own terms in order to avoid the common mistake of equating the fall of the rial in the free market with economic collapse, rising poverty, and increasing protests that can weaken the regime.

Although there are a number of major disagreements between Iran, Russia and Turkey, what is important in the end is that they are all opposing the current US policies in Syria. All three countries have suffered from US sanctions and all have serious trust issues with the Trump administration. Emphasising this common ground, Iran's Supreme Leader Ayatollah Ali Khamenei told Russian President Vladimir Putin earlier in September that "the US is containable" and that Iran and Russia should continue close cooperation towards this goal. Whichever strategy Iran chooses to pursue, the US will likely feel the pressure on the ground soon enough. That could end up being an effective deterrent against US plans of opening additional fronts against Iran in the Middle East.