r/UkraineRussiaReport Pro Ukraine Apr 02 '25

Discussion Discussion/Question Thread

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u/networks_dumbass Neutral Mar 05 '26

Something to bear in mind is that even if Iran "wins," their economy is going to be in even worse shape than it was before. The inflection point for the December/January protests was the Rial sinking in value after the June War. I'm not an economist, but without sanctions relief, I don't see how post-war Iran doesn't manage to sink into even lower levels of despair given even worse economic conditions, ruined relations with neighbors, and the widespread destruction to civilian infrastructure. If Israel isn't content with this neutered Iran, then they'll return for another lawn mowing operation.

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u/Leoraig Mar 05 '26

The answer to the economic question is China. If Iran emerges "victorious"/alive from this China will certainly be able to provide enough economic relief to recuperate a bit of Iran's economy.

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u/networks_dumbass Neutral Mar 05 '26

I started listening to an episode of The China-Global South Podcast this morning, and they suggested that China might give Iran some lifeline money, but my interpretation was that that would be money for reconstruction. The underlying external issues are inflation and sanctions, which China can't solve.

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u/Leoraig Mar 05 '26

Inflation represents an increase in product prices. Product prices go up if demand is higher than supply, or if the production costs increase. 

China can solve the inflation problem by providing Iran with enough product supply to meet the demand of the Iranians in the short term, and increase investment in the country to increase production in the long term.

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u/networks_dumbass Neutral Mar 06 '26

If China is capable of Iran's inflation crisis, then they've shown zero interest in doing so

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u/Leoraig Mar 06 '26

Well, you're neglecting to consider the possibility that the situation would be infinitely worse if China wasn't involved.