US announces re-imposition of sanctions on Iran

Iranian President Hassan Rouhani. Photo: AP

The anniversary of Mr. Rouhani's first inauguration falls on August 3, but given the economic crisis and US sanctions set to return on August 7, no ceremony will be held.

Mr Rouhani is seen as a moderate who can heal Iran's divisions and build a development model like China, in which economic growth will help them avoid demands for significant political reform.

However, when the US withdrew from the nuclear deal last May, damaging the central issue of Rouhani's strategy, this "diplomatically inclined Muslim leader" was suddenly dealt a fatal blow.

Even when the nuclear deal was intact, it never worked as expected, according to the World Bank. Rouhani set a target of attracting $50 billion in foreign investment in the first year of his term but received only $3.4 billion as foreign companies and banks remained wary of US sanctions.

President Trump and the US government announced the re-imposition of sanctions on Iran. Photo: Getty

Furthermore, he has done little to address the corruption and bad debt that plague Iran's banking system, or the high unemployment rate, especially among young people.

According to a report by a US-based technology company, as of the fifth anniversary of his inauguration, President Rouhani had only fulfilled 20 of his 100 election pledges plus 17 "in the implementation phase".

Rouhani's achievements include lower inflation and improved internet, but all the unfulfilled promises have "disappointing and alienated many of his supporters," the report concluded.

For the first time, the (Iranian) parliament has summoned President Rouhani to a hearing next month to explain his plan to rescue the economy.

"He (Rouhani) has friends in the cabinet but no friends anywhere else," said Mohammad Reza Behzadian, former chairman of the Tehran Chamber of Commerce.

For many liberal-minded Iranians, Rouhani’s record on civil rights has exposed his weaknesses. His failure to release political prisoners and prevent a blockade of Iran’s most popular messaging app, Telegram, directly threatens his re-election campaign pledges last year.

Rouhani - talk more than do?

"Every president makes similar promises to create hope, but once elected, they do nothing," said Arash, a 21-year-old photographer in Tehran. "If the election were to be re-run, I would not vote for Rouhani, I would not vote for anyone." This is also a typical view among young people.

For many, this mirrors the second term of Mohammad Khatami, the reformist president in power from 1997 to 2005, who tried and failed to weaken the control of hardline, unelected institutions, leaving many progressives deeply frustrated.

Some even question whether Rouhani is sincere in his commitments. “He chose not to fight and stand up when he could,” said one Western diplomat. “He could have used his power to push for issues like Telegram, but he didn’t. He gave weak support to jihadist protests… he also supported environmental activists when they were arrested. But none of them were like Khatami, who was willing to stand up and be overthrown.”

Meanwhile, Rouhani has fallen out of favor with conservatives, who accuse him of ignoring the poor and selling out to the West. But despite all that, analysts say Rouhani is unlikely to be convicted given the lack of a clear alternative.

Many conservatives have rallied to Rouhani's side, fearing further unrest. Even the ultra-conservative Kayhan newspaper, which has frequently criticized Rouhani, said: "We must put aside our differences because the national interest and the survival of the nation are at stake."

Everyone knows Rouhani has “a big popularity problem,” said Adnan Tabatabai, an Iran analyst at the CARPO Institute in Germany. To survive the last three years of his term, he has tried to appeal to conservative forces.

"He will probably adjust his foreign policy. He can no longer maintain a conciliatory approach with the US... although he also has to look to Europe to save what is left of the nuclear deal." "I don't think the Supreme Leader (Ali Khamenei) wants him (Rouhani) to fail... but he needs to come up with more economic measures to win back the support of the people," Tabatabai said.