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.

Iran’s economy is having difficulties for sure but is far from “collapsing”. While the Iranian rial has lost more than 50 percent of its value against the US dollar in the unofficial market since January 2018, this is nothing new for Iran’s economy. Every president since the end of Iran-Iraq war had to deal with a sort of analogous currency crisis.

The recent protests in Iran are surely a wakeup call for President Rouhani. To respond the legitimate grievances of low-income Iranian households, the Rouhani government should do its best to further diversify the Iranian economy and to bolster its manufacturing and industrial sectors. The Rouhani government should also promote the export of non-oil products, following the models of countries such as South Korea, Taiwan, and recently, the Chinese leviathan. Labor-intensive industries as well as service sectors like information technology, ought to be solidified. Rouhani should call upon state-directed industrial committees and agencies to provide Iranian entrepreneurs and manufacturers with fiscal resources, and he should foster financial support and protection for firms that place emphasis on exporting goods abroad.

As the world’s largest nuclear facilities operators, U.S. corporations understand all aspects of nuclear programs. Employing those same corporations to partner and collaborate with Iran on nuclear projects would be a major confidence-building step that would secure trust between the two sides after the sunset provisions of the deal expire. The people of Iran and the United States have never been enemies. Now is the time to seek a legitimate business-based compromise that can allow the United States and Iran to fully execute the JCPOA in full compliance with both the substance and intent of each of the deal’s signatories while pursing the long-term goal of eliminating the growth and proliferation of nuclear weapons and nuclear terrorism. To this end, Iran and the US can in parallel collaborate on eliminating the risk of proliferation in the region and establishing a Middle East free from all weapons of mass destruction.

What can we expect from Rouhani’s second term? The large majority with which he won does not change the basic fact that the number one decision-maker in Iran remains Supreme Leader Khamenei. Ephraim Kam writes to Iran Matters that it is doubtful that Rouhani’s large majority will translate into greater power vis-à-vis Khamenei and the regime’s radical wing, as the president will likely continue to depend on them.

Djavad Salehi-Isfahani, visiting scholar at the Belfer Center's Iran Project, sheds light on some of the most important economic topics relevant to the 2017 Iranian presidential election. 

A key foreign affairs issue for the Trump administration will be its policy on Iran, as was the case also for the Obama administration. But we have no idea what approach it will take, an uncertainty amplified by the fact that Trump has no experience whatsoever in foreign policy, and no idea whose input he will accept in shaping it. It’s not as if we have no information about his attitude – during the election campaign, Trump made his intention on Iran very clear – but, as with other topics, it is unclear how he will act when once he is forced to translate his intentions into action and realizes that reality is far more complicated than he imagined.

Aaron Arnold, Associate of the Project on Managing the Atom at the Belfer Center, writes in The Diplomat that a key threat to the ongoing implementation of the Iran nuclear deal is the risky nature of the Iranian financial sector. While Iran is banking on receiving greater foreign investment, continued problems with the Iranian financial sector, including lack of sufficient regulatory controls and the potential ties to terrorist financing, have made companies cautious about investing in Iran. He suggests that the United States work with Iran to bring its banking system up to the same standard as the global economy, and to consider closer integration of Iran into the world economy in order to preserve the effects of the nuclear agreement.

The Iran nuclear deal was officially implemented on Saturday, as Iran successfully fulfilled its initial key nuclear commitments and the international community relieved major sanctions, including unfreezing about $100 billion of Iranian money. Implementation Day was met with applause from deal supporters in the U.S. and Iran, while critics have raised questions about whether Iran will adhere to its requirements and how it will flex its newfound economic power. Also in recent days, the U.S. and Iran agreed to a prisoner swap that led to the freedom of Washington Post reporter Jason Rezaian and others, and negotiated the release of American sailors detained in Iran. What does the arrival of Implementation Day mean for Iran’s nuclear program and nuclear nonproliferation, and how does it bode for the future of U.S.-Iran relations? We asked Belfer Center experts to weigh in on these and related questions.