Economic Warning Signs Increasing, Financial Crisis Possible

The economic risks facing Iran are more threatening in the short to medium term than the political ones, and one very good reason for optimism over the long term is that Iran simply cannot afford a protracted war (with the economy posing risks even to the survival of the current administration). Recent evidence backs up all these views, and suggests that the pace of economic decline is accelerating. If oil prices were to drop significantly, then the government would be in serious trouble.

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