How Iran's Wartime Economy Works, And How Long It Can Last

In recent weeks, the US has escalated economic pressure on Iran in a bid to exacerbate Tehran’s financial woes and precipitate a return to the negotiating table without escalating militarily. While the pressure is having an effect, Iran’s war-torn economy, hardened by years of economic isolation, remains resilient. What is the state of Iran’s economy? And how exactly is it weathering escalating economic pressure without fear of imminent collapse? Iran retains effective sanctions evasion strategies honed over years (and still largely successful under heightened pressure), maintains cross-border trade in key goods, and its regime is insulated from the complaints of everyday Iranians. While the cessation of oil exports through the Strait of Hormuz hurts, Iran still assesses that it can endure Operation Economic Outcast longer than the US can tolerate broad Middle East disruption.