[caption id="attachment_151501" align="alignright" width="201"] Students rest at a university while waiting for a final exam in Tehran, Jan. 18, 2009. (photo by REUTERS/Morteza Nikoubazl)[/caption]
The state of the economy has long been a dominant factor in shaping Iran's political evolution since the country's 1979 Islamic revolution. Now, more than a year and half into Hassan Rouhani’s presidency, his government is missing billions of dollars in lost revenues as Iran’s oil-driven economy suffers from the price of crude's tumble to half its value since last June.
Rouhani swept to power in 2013 with campaign pledges to solve the Islamic Republic’s high unemployment and inflation and bring prosperity to the country. So far, some of the economic damage caused by what has largely been described as mismanagement by the previous administration as well as international sanctions has been recovered. Stabilizing the national currency and implementing conservative monetary and fiscal policies have halved the official annual inflation rate to less than 20%, down from nearly 40% during President Mahmoud Ahmadinejad’s tenure.

In addition, re-engaging with the international community and ending years of sanctions have been among Rouhani’s tools to combat these issues. Rouhani said in a June 2014 press conference, “One way to resolve unemployment is to reach a deal in nuclear negotiations. Because when the sanctions are lifted, investments will flow to our country.” The Tehran Chamber of Commerce, Industries, Mines and Agriculture recently suggested that Iran could absorb $500 billion in foreign investments once the sanctions are fully lifted.

A diplomatic push led by Foreign Minister Mohammad Javad Zarif has so far resulted in a limited easing of sanctions under the interim deal reached over Tehran’s nuclear program.

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This article was written by Maysam Bizær for the Al-Monitor on February 17, 2015. Maysam Bizær is a freelance journalist and translator in Iran who focuses on Iran's foreign policy and nuclear program. He has worked for and contributes to various media outlets in Iran . On Twitter: @m_bizar