Will Falling Oil Prices Kill Iran's Economic Recovery?

Will Falling Oil Prices Kill Iran's Economic Recovery?

10/08/14

John Allen Gay

Economics, Nuclear Proliferation, Iran

Collapsing crude revenues could hurt Rouhani—and force Khamenei to show his true colors in the nuclear talks.

Oil prices have been tumbling for weeks—they were at twenty-seven-month lows this morning and fell further throughout the day. That’s good news for consumers—and bad news for producers. But the man who should be most uneasy is Iranian president Hassan Rouhani. He had promised an “economic boom” and lower inflation, and has even suggested that Iran has the potential to be one of the world’s ten largest economies within thirty years. And he’s had some successes. Iran’s economy isn’t zipping and inflation is still extreme, but he has calmed the widening gyre of economic chaos that former president Mahmoud Ahmadinejad had stirred up and worked to reduce Iran’s economic isolation.

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