https://www.cntraveler.com/story/tehran-iran-mehrdad-mzadeh-locals-guide

Iran’s regime appears to have strengthened its domestic support despite facing extensive sanctions and military pressures from the U.S. and Israel. Reports suggest that rather than destabilizing the government, these external pressures have consolidated internal loyalty amid severe economic hardship. Inflation in Iran has exceeded 50%, and millions are facing poverty, yet government crackdowns on protests have maintained control. The recent Memorandum of Understanding between the U.S. and Iran, which initiates a 60-day sanctions relief process, may indicate a shift towards diplomatic engagement. However, support for President Masoud Pezeshkian appears stable, as markets suggest a moderate decrease in the odds of his departure by the end of the year.

Key Takeaways

Market activity suggests that the rise in support for Iran’s regime is consistent with a decrease in the likelihood of President Masoud Pezeshkian’s departure.

Despite economic hardships, the government’s control over protests and internal loyalty appear to be stabilizing Pezeshkian’s position.