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 covering a wide variety of subjects, from the nature of the growing terror threat in Northern Africa to China’s crackdown on Tibet and the struggle over immigration reform in the United States. You can follow Jeff on Twitter at @jseldin or on Google Plus.

You May Like

Video Obama to Send 3,000 Troops to Liberia in Ebola Fight

At Centers for Disease Control and Prevention, President says US will take leadership role for a global response to deadly Ebola virus that is ravaging West Africa More

Video China Muslims Work to Change Perceptions After Knife Attacks

Muslims in Kunming say that they condemn the violence, it is not a reflection of the true beliefs of their faith More

Humanitarian Aid, Equipment Blocked in Cameroon

Move is seen as a developing supply crisis in West Africa More

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.
Enviropreneur Seeks to Save the Environment, Empower the Communityi
X
September 16, 2014 2:06 PM
Lorna Rutto, a former banker, is now an ‘enviropreneur’ - turning plastic waste into furniture and fences discusses the challenges she faces in Africa with raw materials and the environment.
Video

Video Enviropreneur Seeks to Save the Environment, Empower the Community

Lorna Rutto, a former banker, is now an ‘enviropreneur’ - turning plastic waste into furniture and fences discusses the challenges she faces in Africa with raw materials and the environment.
Video

Video West Trades Accusations Over Ransoms

As world leaders try to forge a common response to the threat posed by Islamic State militants in Iraq and Syria, there is simmering tension over differing policies on paying ransoms. In the past month, the jihadist group has beheaded two Americans and one Briton. Both countries refuse to pay ransom money. As Henry Ridgwell reports for VOA from London, there is uncertainty in the approach of some other European nations.
Video

Video Scotland Independence Bid Stokes Global Interest

The people of Scotland are preparing to vote on whether to become independent and break away from the rest of Britain, in a referendum being watched carefully in many other countries. Some see it as a risky experiment; while others hope a successful vote for independence might energize their own separatist demands. Foreign immigrants to Scotland have a front row seat for the vote. VOA’s Henry Ridgwell spoke to some of them in Edinburgh.
Video

Video Washington DC Mural Artists Help Beautify City

Like many cities, Washington has a graffiti problem. Buildings and homes, especially in low-income neighborhoods, are often targets of illegal artwork. But as we hear from VOA’s Julie Taboh, officials in the nation's capital have come up with an innovative program that uses the talents of local artists to beautify the city.
Video

Video US Muslim Leaders Condemn Islamic State

Leaders of America's Muslim community are condemning the violent extremism of the Islamic State group in Iraq and Syria. The U.S. Muslim leaders say militants are exploiting their faith in a failed effort to justify violent extremism. VOA correspondent Meredith Buel reports.
Video

Video Americans' Reaction Mixed on Obama Strategy for Islamic State Militants

President Barack Obama’s televised speech on how the United States plans to “degrade and destroy” the group known as the Islamic State reached a prime-time audience of millions. And it came as Americans appear more willing to embrace a bolder, tougher approach to foreign policy. VOA producer Katherine Gypson and reporter Jeff Seldin have this report from Washington.
Video

Video Authorities Allege LA Fashion Industry-Cartel Ties

U.S. officials say they have broken up crime rings that funneled tens of millions of dollars from Mexican drug cartels through fashion businesses in Los Angeles. Mike O'Sullivan reports that authorities announced nine arrests, as 1,000 law enforcement agents fanned out through the city on Wednesday.
Video

Video Bedouin Woman Runs Successful Business in Palestinian City

A Bedouin woman is breaking social taboos by running a successful vacation resort in the Palestinian town of Jericho. Bedouins are a sub-group of Arabs known for their semi-nomadic lifestyle. Zlatica Hoke says the resort in the West Bank's Jordan Valley is a model of success for women in the region.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid

World Currencies

EUR
USD
0.7722
JPY
USD
107.08
GBP
USD
0.6171
CAD
USD
1.1041
INR
USD
61.075

Rates may not be current.