Middle East & North Africa

When it comes to president-elect Joe Biden’s foreign policy in Asia, Europe and Latin America, he is likely to focus on issues like transatlantic cooperation, U.S.-China relations and immigration. Ambassador Nicholas Burns and WSJ journalists examine the impact a Biden administration could have on U.S. allies around the world. 

President Trump opened a small window for diplomacy with Iran on Wednesday, but combined his words with bald threats that made it hard to see how the two countries could break out of their cycle of confrontation and revenge.

Despite the continuing debate in Tehran, the principle of “no negotiation under pressure” with the United States remains a consensual principle among all members of the current regime. The Supreme Leader has expressed this position by stating that the negotiations with the Trump administration are “double poison”. While Iran’s regional enemies are pushing for confrontation, the international community remains supportive of Tehran’s political position, as long as it stays committed to the nuclear deal. Existing indicators do not point at any willingness for confrontation from either side – at least at the moment. And although some regional actors have attempted to pacify the tension, the prospects for a truce remain unlikely within the current context.

While Iranians are suffering from the economic crisis, the US "maximum pressure" strategy is compelling them to rally around the flag, rather than try to "take down the regime". This is not only because the cultural value of resistance is relatively high, but also because the more the Iranian leadership resists foreign pressure, the more legitimacy it gains.

Unlike the Iraq war of 2003 when Europe was split in its support of the US, all of Europe now disagrees with the American approach to Iran. If the US were to use military force, there would be no European support and the sad likelihood of unifying Europe on an anti-American basis.

In the past 10 years, oil exports have averaged about $67 billion in Iran. Last year, they dropped by two-thirds, and they are expected to drop below $30 billion this year.  There are reasons to believe that, with appropriate policies, the country can live with this level of oil exports, albeit at a reduced standard of living, and even do itself some good in the long run by reducing its dependence on oil.

Iran has been there before. In 2012, when President Obama ratcheted up U.S. sanctions against Iran, oil exports dropped by 27.5 percent, and GDP fell by 6.2 percent. In 2015, sanctions and the collapse of oil prices further reduced oil exports to $32 billion, a decade-long low, and GDP declined by 1.6 percent. If Iran’s leadership is to successfully resist U.S. demands, it must do more than find ways to evade sanctions. A lot depends on its ability to adopt a plan that reduces the economy’s dependence on oil, while distributing the burden of restructuring equitably across social groups.

For the Islamic Republic, resistance to Washington has become a cultural norm, and it considers independence (esteghlal) as the main achievement of the 1979 revolution.  According to Secretary of State Mike Pompeo, Iran would have to meet 12 conditions before the United States will renegotiate the nuclear deal and consider removing its sanctions. These conditions, which are nothing short of surrender on Iran’s part, are either set to force Iran out of the nuclear deal and therefore trigger the return of UN sanctions, or they are a thinly veiled call for regime change.