Iran’s recent truce with Saudi Arabia, a stark departure from years of animosity, is failing to resuscitate its faltering economy.
The rial, which is the basic monetary unit of Iran, gained some ground following the China-brokered deal. But inflation continues to soar, and getting relief from sanctions by reviving the 2015 nuclear deal hasn’t happened.
As Iranians grapple with diminished purchasing power during Nowruz celebrations, the nation’s economic outlook hinges on escaping those nuclear program sanctions and bolstering ties with China and Russia.
Despite the diplomatic breakthrough with Saudi Arabia, Iran’s economy remains held down by Western sanctions. Along with the lack of viable alternatives for sustainable growth, the truce is healing the rift between the countries, but doesn’t heal Iran’s economy.
Read more at The Wall Street Journal.