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Scenarios in Iran in 2024: Regional Openness to Confront Sanctions

Supreme Leader Ali Khamenei meets with members of the Assembly of Experts for Leadership in February 2023. (Supreme leader’s website)
Supreme Leader Ali Khamenei meets with members of the Assembly of Experts for Leadership in February 2023. (Supreme leader’s website)
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Scenarios in Iran in 2024: Regional Openness to Confront Sanctions

Supreme Leader Ali Khamenei meets with members of the Assembly of Experts for Leadership in February 2023. (Supreme leader’s website)
Supreme Leader Ali Khamenei meets with members of the Assembly of Experts for Leadership in February 2023. (Supreme leader’s website)

Iran is hoping to continue in 2024 its policy of improving relations with its neighbors and consolidating economic cooperation with regional countries and its allies in an effort to ease the impact of the American and European sanctions and keep its nuclear negotiations alive as the US presidential elections draw near.

Unless Joe Biden’s administration makes an offer that upends the equation, Tehran and Washington will likely continue to exchange messages through their channels without really achieving a diplomatic breakthrough over the nuclear deal until the winner of the elections is announced on November 5.

The new American administration will take office in January 2025 and soon after, Iran will be gearing up to hold presidential elections in spring. President Ebrahim Raisi is likely to run again given the support he enjoys from Supreme Leader Ali Khamenei.

Iran is expected to continue its uranium enrichment at high levels and its “catch and release” policy with the International Atomic Energy Agency to prevent the file from being referred to the UN Security Council. The possibility that it may change course and head towards producing a nuclear weapon remains on the table if Iran decides to withdraw from the Treaty on the Non-Proliferation of Nuclear Weapons and put the nuclear deal out of its misery.

The war on Gaza and its repercussions and the Russian-Ukrainian war will continue to impact Iran’s nuclear and diplomatic negotiations with the US and its western allies.

As it stands, the war on Gaza and conflict in Ukraine will help ease the pressure off Tehran when it comes to the nuclear file or even reining in the Revolutionary Guards’ development of ballistic missiles and drones or backing armed factions that are loyal to its ideology.

The strategy of teetering on the edge of a confrontation with the US and Israel, while exerting maximum pressure through armed groups will be at the top of Iran’s policies. So far, Tehran has steered clear of direct responsibility to avoid the consequences of the attacks on American forces or threats to marine navigation. Iran says it supports these groups, but claims they make their own decisions independently of it.

So, the nuclear file and economic sanctions will continue to dictate Iran’s foreign policy and internal balances.

Elections

Iran is set to hold parliamentary elections in March, marking one of the most important dates on its calendar. The elections will pit the Iranian street against their rulers some 529 days after the eruption of popular protests in wake of the death of Mahsa Amini.

The electoral campaign kicks off days after the 44th commemoration of the Iranian revolution. People will elect 290 lawmakers for a four-year term. Iran will also hold elections for the Assembly of Experts for Leadership. It is unclear how much the alliances of reformists and moderates or even conservative critics of the Iranian president will be able to change the balance of power in the parliament, including the ouster of its speaker Mohammad Bagher Ghalibaf.

The legislative elections are unlikely to lead to marked change in the political scene given the authorities’ insistence on unifying the directions of the government and parliament, with the decision-making powers that directly answer to Khamenei.

Khamenei and political powers are keen on increasing the voter turnout given the low numbers that showed up for the 2020 parliamentary and 2021 presidential elections. The polls witnessed the lowest ever turnout in four decades.

The last parliamentary elections witnessed a turnout of 42.5 percent and 25.4 percent in Tehran. The turnout in the presidential elections reached 48.8 percent and 26 percent in Tehran or one in four eligible voters took part. The turnout in the capital was the lowest across the country.

Reconciling the street and ballot boxes will be an arduous task, especially in wake of the protests over Amini’s death in police custody in September 2022. The authorities’ crackdown on the protests left over 500 people dead. The consequences of the crackdown persist to this day. Rulers blamed western forces for allegedly stoking the unrest and riots. The authorities ultimately view voter turnout as a “test” of the legitimacy of the regime, which it is missing more than ever before.

Khamenei’s successor

Along with the parliamentary elections, attention will be focused on the elections of the Assembly of Experts for Leadership, which is formed of influential clerics. One of the assembly’s main duties is selecting a successor to the supreme leader if he is no longer capable of carrying on the duties entrusted to him by the assembly. The assembly has been facing serious criticism that it was neglecting its duty to oversee the performance of the supreme leader.

The assembly elections will be very significant next year as Khamenei turns 85 in April. Some clerics affiliated with the moderate and conservative movement, all of whom are former executive members of the body, including former President Hassan Rouhani, are keen on running in the elections.

After Rouhani’s term as president ended, he did not become a member of the Expediency Discernment Council, whose members are chosen by the supreme leader. He will run in the Tehran province, while Raisi sought to avoid a battle in the capital and instead registered his candidacy in the southern Khorasan province. Raisi and Hassan Khomeini, who is backed by the reformist and moderate movement, are possible candidates for the position of supreme leader.

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What Options Does Hezbollah Have in Dealing with Israeli Escalation?

Portraits of current and former Iranian and Hezbollah leaders displayed at a rally, in the southern suburbs of Beirut, Lebanon, September 2, 2026. (Reuters)
Portraits of current and former Iranian and Hezbollah leaders displayed at a rally, in the southern suburbs of Beirut, Lebanon, September 2, 2026. (Reuters)
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What Options Does Hezbollah Have in Dealing with Israeli Escalation?

Portraits of current and former Iranian and Hezbollah leaders displayed at a rally, in the southern suburbs of Beirut, Lebanon, September 2, 2026. (Reuters)
Portraits of current and former Iranian and Hezbollah leaders displayed at a rally, in the southern suburbs of Beirut, Lebanon, September 2, 2026. (Reuters)

Hezbollah finds itself facing an increasingly difficult equation as Israeli escalation in South Lebanon has widened in recent days. How will the party respond to mounting Israeli strikes without being drawn into a broader confrontation that Israeli Prime Minister Benjamin Netanyahu may be seeking either to postpone Israel’s elections or improve his prospects in them.

At the same time, Hezbollah is facing growing pressure from its support base, which is bearing the brunt of the strikes and demanding a response capable of deterring Tel Aviv. Yet the group’s options appear largely constrained by regional developments, particularly the course of US-Iran negotiations, as well as domestic political calculations in Lebanon.

A response could benefit Netanyahu

Sources familiar with Hezbollah’s position said the Iran-backed party has largely avoided signaling whether it intends to retaliate or continue exercising restraint and adhering unilaterally to the ceasefire agreement.

They told Asharq Al-Awsat that Hezbollah is currently focusing on holding the Lebanese authorities responsible for addressing the situation, noting that the group had previously called on the government to engage in dialogue over the expanding Israeli offensive and the failure of negotiations.

The sources see no indication so far that Hezbollah may make a military response. They argue that one objective of Israel’s widening offensive is to provoke Hezbollah and Iran into retaliating and trigger a broader war, which could benefit Netanyahu electorally or help him postpone the polls.

Limited ability to confront Israel

Hilal Khashan, a professor of political science at the American University of Beirut, took a different view, saying Hezbollah has no options left because its military power has collapsed, particularly after its decision to hand over Ali al-Taher — “a symbol of its pride” — to Israel rather than surrender it to the Lebanese army.

“Hezbollah lacks the ability not only to fight Israel, but even to provoke it,” Khashan told Asharq Al-Awsat. “It sent two drones, and we saw the results.”

The academic believes the party’s current priority is to retain its weapons domestically after its military role in confronting Israel has effectively ended, although Hezbollah “insists on living in denial.”

He expects Israeli escalation to continue ahead of the heated elections, saying it will not be confined to Lebanon but could extend to the West Bank, Gaza and southern Syria, amid continued threats of strikes against Iran.

“As for America’s ability to pressure Israel, it appears limited,” Khashan noted, saying this means an expansion of Israeli operations into Lebanon's Bekaa Valley cannot be ruled out.

Three options for Hezbollah

Retired Lebanese army Brig. Gen. Mounir Shehadeh offered a different assessment, identifying three options available to Hezbollah.

“The first is a broad, direct military response,” he told Asharq Al-Awsat. “This is the option that could give Israel the pretext it is seeking to expand its target list, take the escalation deeper into Lebanon and perhaps strike Lebanese infrastructure. It is therefore a high-cost option.”

The second is to refrain entirely from responding. That also carries a price because Israel could interpret it as evidence that it can impose new realities without paying a cost, particularly following the escalation over Ali al-Taher and the continuing strikes, he explained.

The third option is a calibrated, limited response. “In my view, this is the most logical option if the group decides to respond,” Shehadeh said.

Such action would seek to establish the principle that “aggression carries a cost” without triggering an all-out confrontation, he went on to say. Hezbollah could simultaneously maintain a policy of ambiguity by declining to claim every operation, particularly if it wanted to preserve room for political maneuver.

Shehadeh said Hezbollah may be facing a more complicated calculation: whether to respond to Israel now or wait until the direction of US-Iran negotiations becomes clearer.

Waiting for the outcome of those talks would not necessarily mean surrendering or remaining passive, he noted. Instead, Hezbollah could defer a major response while keeping the option of limited retaliation open, since a broad confrontation at this stage could benefit Israel more than the party and give it an opportunity to widen the war before the regional picture becomes clearer.

Shehadeh expects Hezbollah to avoid, in the near term, initiating a major response that could trigger an all-out war. At the same time, the group cannot indefinitely tolerate continued Israeli escalation without responding.

He stressed that the most realistic scenario is to contain the escalation, monitor developments on the ground, take into account the US-Iran diplomatic track and keep open the option of a limited, carefully calibrated response if Israel crosses certain lines.

Features

Iran's Hormuz Leverage Wanes as US Economic Squeeze Bites

Vessels in the Strait of Hormuz near the beach of Bandar Abbas, Iran, September 5, 2026. (Reuters)
Vessels in the Strait of Hormuz near the beach of Bandar Abbas, Iran, September 5, 2026. (Reuters)
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Iran's Hormuz Leverage Wanes as US Economic Squeeze Bites

Vessels in the Strait of Hormuz near the beach of Bandar Abbas, Iran, September 5, 2026. (Reuters)
Vessels in the Strait of Hormuz near the beach of Bandar Abbas, Iran, September 5, 2026. (Reuters)

Six months after a conflict that rattled markets and pushed the region to the brink of a wider war, the tide may be turning against Iran as Washington unleashes an unprecedented economic offensive to achieve what military force could not.

After years of surviving sanctions, Tehran is now confronting one of the harshest squeezes in the regime's history, according to Iranian insiders and regional sources cited by Reuters.

A US naval blockade and tougher sanctions are curbing oil exports, ‌restricting access to foreign currency and exposing growing strains in the economy.

The campaign has led US and regional officials to wager that mounting economic pressure can force Tehran to allow free passage through the Strait of Hormuz, which carries about a fifth of global oil and LNG supplies.

Their bet rests on a simple calculation: Iran is suffering more economic damage than it is inflicting. Efforts to choke off oil exports have cut state revenues, while attempts to disrupt shipping through Hormuz have not triggered the global economic shock Tehran hoped would force Washington to compromise. Energy markets have adjusted and alternative supplies have continued to flow.

Whether the pressure will force concessions remains unclear, the regional sources said. Tehran has failed to impose the costs it hoped would break Washington's resolve but has shown little sign of abandoning demands for sanctions relief, access to frozen assets and recognition of its security role in Hormuz.

Still, a new formula for resolving the standoff is now under discussion between mediators and Iran, the sources said.

Can Tehran outlast the squeeze?

Three senior Iranian sources acknowledged that Washington's campaign is becoming increasingly difficult to withstand. The latest measures have sharply restricted Tehran's ability to access foreign currency, import goods and tap global financing networks that have helped keep the economy afloat.

Iranian leaders fear a worsening economy, marked by surging prices, weaker trade and pressure on household incomes, could reignite nationwide unrest that has repeatedly challenged Tehran.

Shortages of key imports, including fuel and wheat, are becoming an increasing concern, officials said.

US Treasury Secretary Scott Bessent described the strategy as a “one-two punch” combining the blockade with “the toughest sanctions in history.”

“It is going to work in Iran and we are going to collapse this regime,” he told CNBC.

For some US, Israeli and regional officials, such ‌strains strengthen ⁠hopes that economic pressure could eventually carry political consequences inside Iran by triggering unrest, widening rifts within the leadership and weakening its grip on power.

Others remain skeptical that economic and military coercion will produce a political rupture, pointing to decades of failed efforts to destabilize the regime and Tehran's willingness to suppress dissent. They argue Iran's rulers may again prove more resilient than their adversaries expect.

Resilience test

Dennis Ross, a former US negotiator, said Washington may be interpreting Iran's economic distress as evidence of strategic success when the reality is more complicated. Tehran remains determined to demonstrate it can control Hormuz, but appears to be calibrating its use of force while keeping further escalation in reserve.

The Revolutionary Guards may believe Iran can absorb the economic pain and outlast the pressure rather than compromise, ⁠Ross said.

“The Iranians have consistently surprised us in terms of their resiliency,” he added, saying he doubted economic and military pressure alone would force a retreat. Hardliners, he said, may believe they can endure and ultimately secure what they want.

Resilience may depend as much on public tolerance as Tehran's ability to absorb economic hardship, said Burcu Ozcelik, a senior research fellow at the Royal United Services Institute.

“Of course, the economic squeeze raises the risk of public unrest, but for now, a wartime mentality appears to have a significant hold ⁠over the population,” said Ozcelik. “Foreign military intervention, civilian casualties and the perception of a wider civilization confrontation with a US-led order are sustaining a degree of 'Iran-first' patriotic support, tolerance or simply patience with the regime.”

The result is a more stubborn impasse than Washington may have anticipated. Economic pressure is deepening the pain, but Tehran's powerful Revolutionary Guards may see endurance, backed by the threat of escalation, as leverage rather than a reason to concede.

The key question is not whether Iran is ⁠hurting, but whether it is hurting enough to compromise before either side slips toward another confrontation, the regional sources said.

Ross said the clearest path to a deal may lie in the dispute over shipping fees through the Strait of Hormuz. Iran could abandon any demand for a toll while retaining the right to charge for legitimate navigational, security or environmental services, he said.

Such an arrangement could give both sides a claim to victory, allowing Tehran to step back without appearing to capitulate.

“If you could announce that the Strait were reopened,” Ross said, “I think Trump would do a deal.”

Features

China's Memories of Mao Fade to Nostalgia 50 Years after His Death

The Great Helmsman, who died September 9 1976, is still very much a fixture in central Henan province's Nanjie -- often dubbed "China's last Maoist village". Pedro PARDO / AFP
The Great Helmsman, who died September 9 1976, is still very much a fixture in central Henan province's Nanjie -- often dubbed "China's last Maoist village". Pedro PARDO / AFP
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China's Memories of Mao Fade to Nostalgia 50 Years after His Death

The Great Helmsman, who died September 9 1976, is still very much a fixture in central Henan province's Nanjie -- often dubbed "China's last Maoist village". Pedro PARDO / AFP
The Great Helmsman, who died September 9 1976, is still very much a fixture in central Henan province's Nanjie -- often dubbed "China's last Maoist village". Pedro PARDO / AFP

The crimson flags on Nanjie village's "East is Red" Square hang limp in the sweltering summer heat as a trickle of tourists take photos with a towering statue of Chairman Mao Zedong, still gleaming white almost 50 years after he died.

The Great Helmsman, who died September 9 1976, is still very much a fixture in central Henan province's Nanjie -- often dubbed "China's last Maoist village", said AFP.

Nostalgia for Mao's egalitarian ideals is growing in China as memories of his turbulent rule fade and the country grapples with a slowing economy and inequality.

Mao, who led the 1949 communist revolution against the ruling nationalists, ushered in an era of collectivized ownership he argued would drive industry and unite the country, but his drastic policies are also blamed by historians for mass starvation and millions of deaths.

While the ruling Chinese Communist Party maintains Mao was a revolutionary hero, it publicly acknowledged after his death that his devastating Cultural Revolution was a "grave mistake" -- a verdict upheld by subsequent leaders.

In Nanjie, countless murals of the former Chinese leader are plastered around the village.

Residents still live under Maoist principles of shared ownership, while the rest of the country moved on from that economic model.

"I still revere him very much," Xie Kaiyue, a 22-year-old local university student, said of Mao, who died almost three decades before she was born.

"I think young people in the village and, actually, myself, aren't as strong-spirited as in the past... People were purer," she said.

Nearby, electric carts whisked visitors past uniform apartment blocks plastered with socialist slogans as guides explained how cooperative ownership in local enterprises funds free housing for residents.

- Party line -

Around 500 kilometers (310 miles) north, in the mountain village of Dazhai in Shanxi province, once promoted by Mao as a national model after locals terraformed its arid hills into irrigated fields, tourists reminisce about an era when the Great Helmsman dominated political and social life.

"(People) didn't have enough to eat or to wear," Li, a 64-year-old tourist from Xi'an, said of his childhood.

"But... the whole country was full of vigor, and there was a spirit of struggling with heaven, earth, and people to change every aspect of China," the retiree said.

"Of course I miss it."

Now, Dazhai is overflowing with shops selling items that support Mao's personality cult -- posters, playing cards, and crockery emblazoned with his image, and the "Little Red Book" of his quotations.

Still, references to dark chapters of his decades in absolute power are tightly censored in public discourse.

The decade-long episode instigated by Mao in 1966 saw intellectuals brutally targeted as "class enemies" and schools shuttered, setting China back for years in education and development.

Private property and land were collectivized, while economic management pushed the country to the Great Famine, which the government says killed around 15 million people, while historians estimate around 20-43 million.

In one museum, text mentioning the Cultural Revolution had been crudely scraped off signage.

"Everything you see in the public domain... is the party line. No one is allowed to deviate from this," said scholar Xu Chenggang, who was targeted as a child in Beijing during the Cultural Revolution because his father was labelled a "rightist".

Mao's face is printed on banknotes, his portrait overlooks Tiananmen Square, and his body is preserved in a mausoleum.

Every year new movies and TV shows dramatizing Mao's life beam the message of his great deeds to public.

Public discussion has been squeezed further under current leader Xi Jinping, who warns against "historical nihilism", or narratives contradicting the party's own.

"The Communist Party told people there were mistakes, but what's the meaning of 'mistake'? No one knows," Xu said.

- 'Great figure' -

The sanitized history has left space for romanticized interpretations among youths frustrated by long working hours and intense competition in education and the job market.

In December, a viral video series on Bilibili -- a platform popular with those under 30 -- argued that the 2017 movie 'Youth', which follows young performers in a military dance troupe during the 1970s, was a subtle ode to the Cultural Revolution.

The videos, which praised Mao and blamed capitalist elites for crushing the movement, were removed after gaining over 35 million views in less than a week.

"Today, there is more of a sense that the Cultural Revolution was a period of idealism, where society was fired by ideals and not by the relentless pursuit of money and material goods," said to Kerry Brown, head of the Lau China Institute in London and author of a recent book on Mao.

"This is, of course, a total fabrication," he said.

Many also credit Mao with laying the foundation for China to become a modern, technologically advanced nation, said Mobo Gao, professor of Chinese studies at Adelaide University.

"They ask, where did (today's China) come from? It came from the establishment of the PRC," said Gao, who lived through the Mao era in rural Jiangxi province.

"Who was the one who really established the PRC? It must be Mao."

In Shijiazhuang, an industrial city of seven million northeast of Dazhai, 20-year-old Wang Zhihao and his classmates posed with a giant Mao statue opposite the municipal government.

"We admire and revere Chairman Mao very much. He is a great figure," Wang said, as the sound of elderly residents singing songs praising the Communist Party drifted over from the nearby square.

"He led the founding of New China."