Bleak prospects for Iran economy

Synopsis

On Tuesday evening, Iranians were anxiously watching their televisions as President Donald Trump announced the U.S. withdrawal from the landmark nuclear deal. This decision, while anticipated, shocked many Iranians who were already facing high youth unemployment and a decline in purchasing power. Despite the U.S. exit, Iran shows no signs of reciprocating and remains focused on preserving the nuclear agreement, relying on strong support from European states. The Islamic Republic hopes that European governments will help mitigate any U.S. sanctions against companies that engage with Iran. The potential new sanctions could severely impact Iran's economy, particularly by restricting foreign exchange income and access to crucial petrol dollars. If crude oil sales remain unaffected, Iran believes it can still meet the basic needs of its citizens amidst these challenges.