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Strategic Assessment

Home Strategic Assessment Restoring Economic Sanctions: The Impact on Iran

Restoring Economic Sanctions: The Impact on Iran

Research Forum | July 2018
Nizan Feldman
Raz Zimmt

The announcement by US President Donald Trump regarding the United States’ withdrawal from the nuclear agreement prompted a host of predictions regarding the anticipated effects of the renewal of American sanctions on Iran. Various attempts to examine the effectiveness of the sanctions have tended to relate to the anticipated impact on the Iranian economy and on the policy of the regime in the same breath, particularly regarding the nuclear issue. However, these are two separate phenomena. Analysis reveals that the US economic campaign can be expected in upcoming quarters to intensify the foreign currency crisis in Iran, increase inflation, and reduce the scope of local and foreign investments. Within a few quarters, this could lead the Iranian economy to a situation similar to the one it faced on the eve of the nuclear agreement in 2015. In terms of the political implications of the renewal of sanctions, however, it is too early to assess whether the pressure in itself will serve to moderate the regime’s policies. It is also difficult to predict how the economic pressure will affect public opinion. Heightened pressure could serve to intensify popular protest in Iran, but it could also help the regime mobilize public support against the West.


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  • Research

    • Topics
      • Israel and the Global Powers
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      • Glazer Israel-China Policy Center
      • Russia
      • Europe
      • Antisemitism and Delegitimization
      • Iran and the Shi'ite Axis
      • Operation Roaring Lion
      • Iran
      • Lebanon and Hezbollah
      • Syria
      • Yemen and the Houthi Movement
      • Iraq and the Iraqi Shiite Militias
      • Conflict to Agreements
      • Israeli-Palestinian Relations
      • Hamas and the Gaza Strip
      • Peace Agreements and Normalization in the Middle East
      • Saudi Arabia and the Gulf States
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      • Jordan
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