News / Economy

    In Tehran, Optimism in Wake of Nuclear Deal

    Iranian Consumers May See Little Benefit From Nuclear Deali
    X
    November 27, 2013 8:01 PM
    The nuclear deal between world powers and Tehran is spurring hope of some revival for Iran's struggling economy. The interim deal eases some of the crippling sanctions against Iran, as long as Iran makes good on promises to limit or freeze some of its nuclear activities. But whether the results will meet the expectations of everyday Iranians is less than certain. VOA's Jeff Seldin has more.
    The nuclear deal between Tehran and the so-called P5+1 — the United States, Britain, China, France and Russia, plus Germany — is spurring hope of some revival for Iran's struggling economy.
     
    On the streets of Tehran, and in the bazaars, there seems to be a newfound confidence — particularly for consumers such as Nahid Habibi, a Tehran resident who is perusing gold jewelry.
     
    "People have more motivation to buy. There is more confidence among shoppers," she says. "I personally feel that it is less likely that I lose out if I buy merchandise."
     
    Even currency dealers who have seen the rial's value dive by 80 percent compared to the U.S. dollar are optimistic.
     
    "The good atmosphere is the result of the talks, it can't be more obvious," said Hossein, a currency dealer who chose to withhold his last name.
     
    While the Geneva talks resulted in an agreement by Tehran to freeze key aspects of its nuclear program in exchange for an easing of sanctions on gold, the auto sector and petrochemical exports — providing about $1.5 billion in revenue — whether results will meet expectations of the average Iranian citizen is less than certain.
     
    While the interim deal will ease some of the crippling sanctions so long as Tehran officials make good on promises to limit or freeze some nuclear activities, the question of whether it will help the country's struggling economy remains to be seen.
     
    "I think the average Iranian has very high expectations for what this will mean for them in a day to day basis. And in terms of what they are going to experience in the days, weeks and months to come, it's going to be very, very little," says Matthew Levitt, Director of the Stein Program on Counterterrorism and Intelligence the Washington Institute for Near East Policy.
     
    That could leave Iranian President Hassan Rouhani with a "crisis of rising expectations," Levitt says, forcing him to finalize a deal with world powers or put Iran into spin mode, finding ways to blame the West for a failure to reach any final agreement.
     
    But it's not just Iranians who are getting their hopes up. Plenty of international businesses are also starting to eye the possibilities in a country where experts say there is plenty of demand for American goods.
     
    "I don't see an immediate gold rush into Iran, but I certainly see companies being interested in it and looking at it," says Clif Burns, an export law attorney at Washington-based firm Bryan Cave. "As the sanctions progress, they will explore more activity in Iran."
     
    While U.S. officials say that so far nothing has changed and trade embargoes remain firmly in place, some Iranians already see signs of hope.
     
    “The only thing that I do get worried about when I go to Iran is the effect of sanctions on the airlines — with Iran Air, where the planes are actually going to have a malfunction because of not getting the part because of sanctions," said Ali, an Iranian-American graduate student who spoke to VOA on the condition he not be identified to protect friends and family in Iran."
     
    Those worries will ease as the interim deal signed by Iran and world powers allows for some safety-related repairs and inspections inside Iran for certain Iranian airlines.

    Jeff Seldin

    Jeff works out of VOA’s Washington headquarters and is national security correspondent. You can follow Jeff on Twitter at @jseldin or on Google Plus.

    You May Like

    Beijing Warns Critics Over South China Sea Dispute

    Official warns critics that the more they challenge China's position regarding disputed territories in one of world’s busiest waterways, the more it will push back

    Will New Russian Force Be 'Putin’s Personal Army'?

    With broad powers to control riots, suppress dissent, National Guard may be aimed at sending a message to West as much as keeping peace at home

    Foreign Media in Pyongyang Barred From North Korean Party Congress

    Hundreds of international journalists invited to cover historic party meeting barred from entering actual event

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Image Recognition Market Seen Doubling by 2020i
    X
    Ramon Taylor
    May 05, 2016 10:05 PM
    From auto tagging on Facebook to self-driving cars, image recognition technology as it exists today is still in its beginning phases, experts say — and will soon change the way users and corporations interact with the physical world. VOA's Ramon Taylor reports.
    Video

    Video Image Recognition Market Seen Doubling by 2020

    From auto tagging on Facebook to self-driving cars, image recognition technology as it exists today is still in its beginning phases, experts say — and will soon change the way users and corporations interact with the physical world. VOA's Ramon Taylor reports.
    Video

    Video Child Labor in Afghanistan Remains a Problem

    With war still raging in Afghanistan, the country also faces the problem of child labor as families put their school-age children to work to help make ends meet. But, thanks to VOA's Afghan Service, two families whose children had been working in a brick-making factory - to earn their livings and pay off family debts - now have a new lease on life. Zabihullah Ghazi reports.
    Video

    Video Kurdish Troops Recount Firefight Which Killed US Navy SEAL

    A U.S. Navy SEAL killed Tuesday, when Islamic State fighters punched through Kurdish lines in northern Iraq, was part of a quick reaction force sent to extract other U.S. troops trapped by the surprise offensive. VOA's Kawa Omar spoke with Kurdish troops in the town of Telskuf -- the scene of what U.S. officials called a "dynamic firefight."
    Video

    Video British Lawmakers Warn EU Exit Talks Could Last A Decade

    Leaving the European Union would mean difficult negotiations that could take years to complete, according to a bipartisan group of British lawmakers. While the group did not recommend a vote either way, the lawmakers noted trade deals between the EU and non-EU states take between four and nine years on average. Henry Ridgwell reports on the mounting debate over whether Britain should stay or exit the EU as the June vote approaches.
    Video

    Video NASA Astronauts Train for Commercial Space Flights

    Since the last Shuttle flight in 2011, the United States has been relying on Russian rockets to launch fresh crews to the International Space Station. But that may change in the next few years. NASA and several private space companies are developing advanced capsules capable of taking humans into low orbit and beyond. As VOA's George Putic reports, astronauts are already training for commercial spacecraft in flight simulators.
    Video

    Video US Worried Political Chaos in Iraq Will Hurt IS Fight

    The White House is expressing concern about rising political chaos in Iraq and the impact it could have on the fight against the Islamic State. The U.S. says Iraq needs a stable, central government to help push back the group. But some say Baghdad may not have a unified government any time soon. VOA's White House correspondent Mary Alice Salinas reports.
    Video

    Video Press Freedom in Myanmar Fragile, Limited

    As Myanmar begins a new era with a democratically elected government, many issues of the past confront the new leadership. Among them is press freedom in a country where journalists have been routinely harassed or jailed.
    Video

    Video Taliban Threats Force Messi Fan to Leave Afghanistan

    A young Afghan boy, who recently received autographed shirts and a football from his soccer hero Lionel Messi, has fled his country due to safety concerns. He and his family are now taking refuge in neighboring Pakistan. VOA's Ayaz Gul reports from Islamabad.
    Video

    Video Major Rubbish Burning Experiment Captures Destructive Greenhouse Gases

    The world’s first test to capture environmentally harmful carbon dioxide gases from the fumes of burning rubbish took place recently in Oslo, Norway. The successful experiment at the city's main incinerator plant, showcased a method for capturing most of the carbon dioxide. VOA’s Deborah Block has more.
    Video

    Video EU Visa Block Threatens To Derail EU-Turkey Migrant Deal

    Turkish citizens could soon benefit from visa-free travel to Europe as part of the recent deal between the EU and Ankara to stem the flow of refugees. In return, Turkey has pledged to keep the migrants on Turkish soil and crack down on those who are smuggling them. Brussels is set to publish its latest progress report Wednesday — but as Henry Ridgwell reports from London, many EU lawmakers are threatening to veto the deal over human rights concerns.
    Video

    Video Tensions Rising Ahead of South China Sea Ruling

    As the Philippines awaits an international arbitration ruling on a challenge to China's claims to nearly all of the South China Sea, it is already becoming clear that regardless of which way the decision goes, the dispute is intensifying. VOA’s Bill Ide has more from Beijing.
    Video

    Video Painting Captures President Lincoln Assassination Aftermath

    A newly restored painting captures the moments following President Abraham Lincoln’s assassination in 1865. It was recently unveiled at Ford’s Theatre in Washington, where America’s 16th president was shot. It is the only known painting by an eyewitness that captures the horror of that fateful night. VOA’s Julie Taboh tells us more about the painting and what it took to restore it to its original condition.

    Special Report

    Adrift The Invisible African Diaspora

    World Currencies

    EUR
    USD
    0.8742
    JPY
    USD
    107.09
    GBP
    USD
    0.6893
    CAD
    USD
    1.2820
    INR
    USD
    66.504

    Rates may not be current.