The international sanctions imposed on Iran between 2012 and 2019 have had a profound and pervasive impact on the country’s economy. The findings of this study show that these sanctions have reduced Iranians’ per capita income (based on purchasing power parity) by an average of $3,600 per year, creating a significant gap between Iran and countries with similar governance conditions. In addition, the sanctions have caused an average annual decline of 11 percentage points in the share of the middle class in the population; part of this population has been relegated to low-income groups or has migrated. Indicators such as gross fixed capital formation, foreign trade volume, and the level of informal employment have also been significantly negatively affected. In such circumstances, the lifting of sanctions through international negotiations will pave the way for economic recovery, provide the basis for the return of investment in key sectors such as energy and industry, and facilitate the country’s scientific and technological interactions. Also, the reduction of political and economic uncertainties will be accompanied by an increase in tourism and the containment of the brain drain phenomenon. The results of this study indicate that an agreement with the United States and other global players will not only enable Iran to return to the global economy, but will also bring mutual benefits to all parties.
Farzanegan MR, Gutmann J. (2024). “International sanctions and internal conflict: The case of Iran”.CESifo Working Paper Series No. 11578. https://doi.org/10.2139/ssrn.4689693.
Farzanegan MR, Habibi N. (2024). “The effect of international sanctions on the size of the middle class in Iran”. CESifo Working Paper No. 11175. https://doi.org/10.2139/ssrn.4882432.
Farzanegan, M. R. (2026). The necessity of international negotiations to contain the consequences of sanctions and achieve economic prosperity. Journal of Countries Studies, 3(4), 653-657. doi: 10.22059/jcountst.2025.394015.1278
MLA
Farzanegan, M. R. . "The necessity of international negotiations to contain the consequences of sanctions and achieve economic prosperity", Journal of Countries Studies, 3, 4, 2026, 653-657. doi: 10.22059/jcountst.2025.394015.1278
HARVARD
Farzanegan, M. R. (2026). 'The necessity of international negotiations to contain the consequences of sanctions and achieve economic prosperity', Journal of Countries Studies, 3(4), pp. 653-657. doi: 10.22059/jcountst.2025.394015.1278
CHICAGO
M. R. Farzanegan, "The necessity of international negotiations to contain the consequences of sanctions and achieve economic prosperity," Journal of Countries Studies, 3 4 (2026): 653-657, doi: 10.22059/jcountst.2025.394015.1278
VANCOUVER
Farzanegan, M. R. The necessity of international negotiations to contain the consequences of sanctions and achieve economic prosperity. Journal of Countries Studies, 2026; 3(4): 653-657. doi: 10.22059/jcountst.2025.394015.1278
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