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Iran’s Grim Economy Limits Its Willingness To Confront The U.S.


Fearful of public anger over a plunging economy, Iran’s leaders appear to be turning inward, pulling back from escalation.

Iran is caught in a wretched economic crisis. Jobs are scarce. Prices for food and other necessities are skyrocketing. The economy is rapidly shrinking. Iranians are increasingly disgusted.

Crippling sanctions imposed by the Trump administration have severed Iran’s access to international markets, decimating the economy, which is now contracting at an alarming 9.5 percent annual rate, the International Monetary Fund estimated. Oil exports were effectively zero in December, according to Oxford Economics, as the sanctions have prevented sales, even though smugglers have transported unknown volumes.

On Tuesday, pressure intensified as Britain, France and Germany served notice that they would formally trigger negotiations with Iran toward forcing it back into compliance with a 2015 nuclear deal — a step that could ultimately lead to the imposition of United Nations sanctions.

The bleak economy appears to be tempering the willingness of Iran to escalate hostilities with the United States, its leaders cognizant that war could profoundly worsen national fortunes. In recent months, public anger over joblessness, economic anxiety and corruption has emerged as a potentially existential threat to Iran’s hard-line regime.

Only a week ago, such sentiments had been redirected by outrage over the Trump administration’s Jan. 3 killing of Iran’s top military commander, Maj. Gen. Qassim Suleimani. But protests flared anew over the weekend in Tehran, and then continued on Monday, after the government’s astonishing admission that it was — despite three days of denial — responsible for shooting down a Ukrainian jetliner.

The demonstrations were most pointedly an expression of contempt for the regime’s cover-up following its downing of the Ukrainian jet, which killed all 176 people on board. But the fury in the streets resonated as a rebuke for broader grievances — diminishing livelihoods, financial anxiety and the sense that the regime is at best impotent in the face of formidable troubles.

Inflation is running near 40 percent, assailing consumers with sharply rising prices for food and other basic necessities. More than one in four young Iranians is jobless, with college graduates especially short of work, according to the World Bank.

The missile strikes that Iran unleashed on American bases in Iraq last week in response to Gen. Suleimani’s killing appeared calibrated to enable its leaders to declare that vengeance had been secured without provoking an extreme response from President Trump, such as aerial bombing.

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About Djkotech | Always Stay Connected

Akpore Eguono Love (born 04 May 2001), known professionally as Dj Kotech (sometimes stylized as Kotech joor), is a Nigerian disc jockey and a blogger. Dj Kotech signed a record deal with Mighty Men Empire (M.M.E) in 2016. He rose to prominence after releasing “Good Times” followed by “Oga Sars“. In February 2018, Dj Kotech […]more →