The economy of Iran is severely strained. At least in the near term, however, it is unlikely to experience a total collapse that would force the ruling regime into good faith negotiations with the United States.

Iran’s economy is certainly in dire shape. Inflation is rampant, the currency’s value is plummeting, oil exports have been severely disrupted, and years of sanctions have isolated the country from the global financial system. The recent American blockade has dramatically intensified these pressures. Yet, economic misery should not be confused with complete functional failure. Iran is considerably more resilient than President Donald Trump suggests.