FLASH
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Weeks of fighting have exacerbated Iran's already dire economic problems, risking something worse after the war. But for now, Iran's government appears to be trying to cope with the pain, despite the US blockade.
Negotiations have stalled and appear to be going nowhere soon, following a lull in fighting that began on April 8. Even before the fighting, Iran's economy was suffering, with large protests taking place at the turn of the year over economic conditions, which Tehran violently suppressed.
-Iran's 'longest runway'
Despite damage to infrastructure and a cap on oil prices, Iran has ample domestic supplies, stable trade with neighbors and only limited signs of stress from the loss of state due to the blockade, Reuters news agency reported.
"I think they have calculated a longer runway than I think Western economists or policymakers anticipate," said Sanam Vakil, head of the Middle East program at the Chatham House thinktank in London, referring to Iran's leaders.
-'The economy of resistance'
Vakil said Iran's leaders could use their iron grip on the country to wait for a lasting deal from Washington. She added that Tehran is retreating from its "resistance economy" approach that relies on domestic resources and trades across land borders.
However, Reuters reported this month that the situation was so bad that some Iranian officials feared new rounds of protests and the country faced a potential catastrophe. The rial currency has fallen by 70% in the past year and has fallen by 15% in recent days.
-Signs of stress
But there are few other signs of the stress Iran is under. There are no restrictions on bank withdrawals or rationing of food or fuel, and supermarket shelves appear to remain largely stocked.
Before the war, Iran increased its reserves, the head of parliament's agriculture committee, Mohammad Javad Asgari, told state media this month. So, for now at least, Iran appears determined to hide in the bunker.
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