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

Oil markets have so far reacted to President Donald Trump’s decision to withdraw from the 2015 Iran nuclear deal without either enthusiasm or panic — without even much apparent interest. There are many good reasons for this, but also many reasons to think oil markets’ complacency could change. Fortunately, the Obama-era sanctions that Trump has moved to reimpose have some lesser-known safety valves should oil markets later overheat as a result of the Iran decision.

Despite its flaws, the May 19 presidential election offered Iranian voters a real choice between the moderate incumbent President Hassan Rohani and a hard-line rival, Ayatollah Ebrahim Raeisi. Djavad Salehi-Isfahani writes to The Arab Weekly that Rohani’s decisive win with 57% of the vote, combined with a sweep by reformist candidates in the city council elections in Tehran and several other major cities, gives him a strong mandate to move for­ward with his program of eco­nomic reform.

More than forty million Iranians surged to the polls and voted last Friday to choose their country’s future path: between one of engagement and diplomacy with the West and one based on a self-reliant economic populism. Although Iranians overwhelmingly chose the former option, the implications of these elections indicate that major battles over the fight for the next Supreme Leader and the political identity of the country loom on the horizon. In his latest article to the Washington Post, Payam Mohseni, Director of the Belfer Center's Iran Project, discusses the nature of the conservative campaign against President Hassan Rouhani and how, win or lose, it is the tenability and success of this conservative alliance that will significantly impact the future path that Iran takes—not simply the current re-election of Rouhani to the presidency.