Middle East & North Africa

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.

While many Shia movements may have differences of opinion with Iran, as long as the Trump presidency uncritically supports Saudi Arabia and the threat of military conflict with Iran remains on the horizon, it is unlikely that any popular Shia group will side with the United States. The administration’s narrow focus on Iran will provoke precisely what the Trump White House aims to prevent—a more cohesive regional Shia movement under Iran’s protection and aggrieved Shia supportive of countering U.S. influence in the region. In other words, the current U.S. course is narrowing policy discussions both within individual Shia organizations as well as across transnational Shia alliances by closing the door to pro-U.S. policy alternatives. This further consolidates Iran's position as the center of the Shia world and its long-standing partnership with various Shia transnational movements throughout the Middle East such as the Lebanese Hezbollah, many of Iraq's Popular Mobilization Forces (PMF), and Yemen's Ansarallah (the Houthis) all of whom are engaged in critical regional hotspots.

In mid-March, Iranian Foreign Minister Mohammad Javad Zarif traveled to Islamabad for a three-day visit, heading a 30-member Iranian delegation. During talks with Pakistani Prime Minister Shahid Khaqan Abbasi, Zarif pledged to increase bilateral trade between Iran and Pakistan from around $1.16 billion today to $5 billion by 2021. They also discussed other areas of cooperation. In an email interview, Payam Mohseni, the director of the Iran Project at the Harvard Kennedy School’s Belfer Center for Science and International Affairs, discusses how Iran and Pakistan’s mutual desire for a deeper relationship must contend with regional rivalries. 

It is time for a reality check: despite claims to the contrary by Iran’s supreme leader, the United States is not the central actor in the drama that recently unfolded in Iran, nor was it the central actor in Egypt back in 2011. The mass protests that forced the Egyptian dictator from power were driven by the Egyptian public’s growing disenchantment with decades of political, economic and social mismanagement by a succession of military rulers. Contemporary observers noted with surprise the absence of references to the United States or other foreign-policy considerations during the protests. The demonstrators’ recurrent chant—“bread, freedom, social justice and human dignity”—encapsulated the domestic motivations behind the public’s mobilization.

In 2006, in the midst of a fierce war between Israel and the Lebanese militant group Hezbollah, former U.S. Secretary of State Condoleezza Rice famously stated that the world was witnessing the “birth pangs of a new Middle East.” She was right—but not in the sense she had hoped. Instead of disempowering Hezbollah and its sponsor, Iran, the war only augmented the strength and prestige of what is known as the “axis of resistance,” a power bloc that includes Iran, Iraq, Syria, Hezbollah, and Hamas in Palestine.