Stuck in Limbo: U.S. Negotiations and Iran’s Economy

In a remarkable turn of events, both Islamic Revolutionary Guard Corps-affiliated and reformist media concur on the futility of continued negotiations with the United States, yet neither offers Iran’s leadership a pathway out of Iran’s political and economic limbo.  

• August 17: An article on Islamic Revolutionary Guard Corps-affiliated Javan’s frontpage urged the Cabinet to abandon nuclear negotiations with the United States: 

• • Former Foreign Minister Mohammad Javad Zarif “urged Tehran and Washington to sign a ‘nonaggression pact’ and Jafar Qaempanah said we should negotiate with the United States to avert another war. The problem is that these gentlemen do not comprehend that the United States, for the time being, does not want to negotiate with us.” 

• August 17: In a frontpage opinion piece in reformist Sharq, columnist Kiyoumars Ashtarian wrote:  

• • “We have never been, nor are we, opponents of negotiations and have always emphasized the need for it. However, when the enemy perceives itself as victorious and in no need of engaging in diplomacy, insisting on negotiations through intermediaries will have the opposite effect … Asking for negotiations is not just humiliating … but may tempt the counterpart to start a new war, this time assassinating the political leadership to negotiate with second-tier representatives.” 

• August 17: Donya-ye Eqtesad columnist Ali-Reza Soltani wrote about the state of Iran’s economy:  

• • “About a month and a half after the end of the 12-day war between Iran and Israel, Iran’s economy remains in a state of waiting – or, more precisely, limbo.”  

• • “No clear strategy has been presented for economic management. Decision-making processes in key areas, such as budgeting, public investment, and currency and fiscal policy, have been suspended.” 

• • “At the level of executive agencies and state-owned companies, many construction and infrastructure projects have been halted or suspended … due to the risk of renewed sanctions … Private and semistate companies have also practically stopped development investments.”  

• • “One of the most worrying areas is the suspension of major strategic projects, such as oil and gas development. Despite contracts valued around $18 billion for development and gas-pressure boosting in the South Pars field, the necessary financing for operations has not yet been secured. While these projects are crucial for the country’s future energy and exports, their funding has become secondary, with resources seemingly redirected toward security, defense, and essential goods.” 

• • “At the social level … Effects include rising inflationary expectations, frozen capital, declining purchasing power, and eroding public trust in economic stability.” 

• • “The financial markets are also paralyzed. The stock exchange has stalled, the currency market is marked by unpredictable fluctuations, and the credit market suffers from reduced demand for development loans.” 

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