Sanctions and the Economic Impact on Iran's Economy

Abstract

Iran has always been in an unfavorable situation due to structural economic problems over the past decades, which has caused it to lose its resilience to internal and external shocks and become vulnerable and fragile. By focusing on the vulnerability channels of the country's economy, especially for oil revenues, as the main source of government funding, the sanctions have taken steps to disrupt the country's economic power, leading to declining oil exports and consequently lower foreign exchange earnings. In such circumstances, dependence on oil revenues, tension in the foreign exchange market due to lack of supply saws, corruption and rent-seeking, increasing pressures on the productive sectors and the expansion of the productive sectors and the welfare index has risen so that the Iranian Economy It has lost its resilience to economic crises. Therefore, the main purpose of this study is to investigate the impact of international economic sanctions on the structure of Iran's economy. The question that arises in this regard is what opportunities and threats have the sanctions posed to the Iranian economy? The hypothesis tested is that there is a significant relationship between oil economy and economic crises in Iran. However, in addition to the threats it poses to Iran's oil economy, international sanctions have also presented opportunities for the structure of Iran's oil economy, so that by developing a comprehensive operational plan based on the capacities of the local non-oil economy. Ether is dependent on oil revenues and has thus overcome economic and political crises.