Iran’s domestic economic turmoil has deepened. At the same time, tensions over its nuclear program continue to boil, forcing Tehran into renewed backdoor, expert-level talks with the United States. After months of negotiations held largely in Rome, the talks have picked up again. Their aim is to limit the difficult impacts of the ongoing damage done by the Iranian rial’s recent fall to more than 1 million to the dollar. Iran is on an economic knife’s edge and looking for a diplomatic breakthrough. While the government hopes to stabilize its financial situation, it undoubtedly desires to continue its nuclear pursuits.
Just earlier this month, the Iranian rial posted its biggest single day drop ever, further deepening the country’s economic woes. With inflation soaring and essential goods becoming increasingly unaffordable for the average citizen, Iran’s leaders are under pressure to secure a deal that would restore confidence in the currency and stabilize the economy.
Alongside these economic struggles, Iran’s domestic political world is one of charged antagonism. Clashes and protests against the forced hijab law still continue to spread throughout Tehran, as thousands of brave women are removing the headscarf in public. Yet this internal unrest issues a further challenge to the government’s negotiating capacity, at the economic and nuclear table alike.
Former President Donald Trump has long advocated for a rapid conclusion to the nuclear dispute. He’s gone so far as to threaten military action if Iran doesn’t abandon its dangerous nuclear ambitions. What we ultimately heard from Trump was, “Look, I’m for stopping Iran, very simply from having a nuclear weapon. He’s demanding a quick agreement. This urgency is a welcome sign of the alarm bells most in the international community share over Iran’s accelerating nuclear program.
Iran, on the other hand, is under pressure to placate both domestic and international audiences that its nuclear ambitions are entirely peaceful in nature. The implications Nevertheless, the nation is clearly intent on maintaining its enriched uranium inventory. According to a series of recent, unclassified IAEA reports, Iran has recently enriched uranium to 60% purity. Analysts are warning that this level is alarmingly close to weapons-grade fissile material. Getting that 90% purity is only a small technical leap. Accordingly, the nuclear program continues to be a key sticking point in talks that are still happening.
Abbas Araghchi, a top Iranian negotiator said he was upbeat about the new talks in Rome. He said they occurred in a collaborative atmosphere and underscored the importance of focusing on progress being made. After the technical talks, he said that he hoped his country would be in a stronger position. It illustrates Iran’s willingness to further its objectives through negotiations.
Iran’s flag carrier, Iran Air, has been affected by the economic climate and is currently seeking two used Airbus A330-200 aircraft. The airline’s initiatives are indicative of larger economic tides of air traffic and infrastructure investment moving within the nation.
Iran’s currency has benefitted from the success of recent negotiations. According to monitoring reports, it has caught a little respite since their peace talks started. Tehran’s expectations Tehran hopes these discussions will contribute to further strengthening the value of its economy and currency.
As European Commission President Antonio Tajani recently noted, behind-the-scenes diplomacy will be key in easing simmering disputes. It’s built slowly, he said, day by day, through conversation and through respect.
