Nuclear Issues

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

Trump's strategy appears to be one of brinkmanship—rocking the boat in hopes that the other party is less risk-tolerant and will give in before the boat capsizes.

"Now that President Barack Obama has secured more than enough votes in the U.S. Senate to assure the implementation of the agreement with Iran on nuclear issues and sanctions, we can focus on the lessons learned from the process’ intense political dynamics. Three in particular stand out: U.S.-Israeli, U.S.-Saudi Arabian/Gulf Cooperation Council (GCC), and GCC-Iranian relations. U.S.-Israeli bilateral ties get the most attention these days, but all three are equally important, and turbulent in their own ways."

In the wake of yet another extension in the nuclear negotiations between Iran and the P5+1, the next step for the United States to move toward a final comprehensive agreement with Iran is to engage with those Iranians it likes the least—the hardliners. Crafting a sophisticated agreement capable of persuading Iranian hardliners and the Revolutionary Guards to accept a final deal is essential to moving the negotiations forward. Iranian President Hassan Rouhani and his moderate team of negotiators are constrained by the hardliners who, in turn, have nothing to lose if negotiations fail. While the lifting of international sanctions is commonly considered to be the main economic incentive for Iran to agree to a deal, we should be aware that many U.S. sanctions will remain against key hardline actors in the Iranian regime for non-nuclear related reasons. In other words, those hardline elements most opposed to the current talks—the spoilers—are also the ones that have the least to gain from their success.

"...[S]anctions played a part in changing Iran's behavior, but not because they forced Iran to return to the negotiation table out of fear of economic collapse. Rather, sanctions contributed to a transformation of the balance of power within the Iranian political system that had been already underway since 2009 — prior to the enactment of the current sanctions regime. Sanctions helped pave the way for a Rouhani victory in the 2013 presidential elections..."

With a speed few predicted, Iran’s new president, Hassan Rouhani, has signaled his interest in negotiations this autumn on Iran’s controversial nuclear program," writes Nicholas Burns. "This could produce the first extensive contact between Washington and Tehran since diplomatic relations ruptured during the Jimmy Carter administration."