Modern Diplomacy:

BY DR. JOHN CALABRESE

Iran’s economy stands at a critical juncture, with external pressures and internal dysfunction pushing it further from recovery. Although the country has demonstrated resilience in the face of sanctions, its economic challenges have deepened, exacerbating inflation, unemployment, and poverty. While Tehran continues to project an image of defiance, deeper structural problems suggest the nation is facing a protracted period of stagnation.

Sanctions Impact and Resistance

Sanctions imposed on Iran by the US have focused on its nuclear capabilities, energy and defense industries, as well as government officials, banks, and various sectors of the Iranian economy. Washington’s sanctions on Iran block nearly all US trade, freeze the country’s assets, and ban American foreign aid and arms sales.

Under the Trump administration’s “maximum pressure” sanctions campaign (2018-2021), over 90% of Iran’s $120 billion in reserves became inaccessible. Secondary sanctions reimposed in 2018 devalued Iran’s currency by 60%, triggering a balance of payments crisis and driving up import costs. The data regarding the impact of sanctions on Iranian society is striking. The economy experienced sharp contraction, per capita income declined, poverty levels rose, and living standards worsened.

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