The Saudi-Iran deal, brokered by China earlier this year, which paved the way for normalization of relations between Iran and Saudi Arabia was an important step towa

 earlier this year, which paved the way for normalization of relations between Iran and Saudi Arabia was an important step towards changing the geopolitical landscape of the 

, and also reducing Iran’s isolation both within the Middle East and outside.

Several other developments and steps taken by Iran are a clear indicator, that Iran despite prevailing US sanctions and tensions with the west, is keen to follow a pragmatic foreign policy while giving precedence to its own interests. This is in stark contrast to public statements of 

First, despite US sanctions and purchase of oil at discounted prices from Russia, in the aftermath of the Russia-Ukraine war, China has been purchasing large amounts of oil from Iran.

A report published by the International Energy Agency (IEA) titled “Oil 2023” 

 “Despite severe financial restrictions, Iran managed to increase its crude oil production by about 140,000 barrels per day in 2022 to an average of 2.5 million barrels per day. It seems that Tehran has maintained its crude sales to China, which has been around one million barrels per day since the third quarter of last year.”

Kpler  (a date and analytics firm) also said that Iranian oil imports to China have more than tripled over the past 

Iran seeking to strengthen ties with Global South

Second, Iran has been seeking to strengthen ties with countries in the 

, especially those which are facing sanctions. Iranian President, Ebrahim Raisi, undertook a five day tour of Latin America, in 

 during which he visited Venezuela, Nicaragua and Cuba.

In July 2023, Raisi became the first Iranian President to visit Africa after more than a

.  During his Africa trip, Raisi visited Kenya, Uganda and Zimbabwe.

” and sanctions were vehemently criticised. Iran sought to bolster economic cooperation with all the above countries, several of which are facing US sanctions, and to face the challenges posed by 

Third, despite all the anti-west rhetoric, Iran is seeking to reduce tensions with US. Both countries are supposed to be engaged in back-channel talks seeking to reduce the prevalent acrimony between both countries. The US has publicly denied that its policy will fundamentally change vis-à-vis Iran unless it slows down uranium enrichment and stops selling weapons to Russia. Iran on its part has moved detained Americans towards “

 and the US in return is likely to release Iranians imprisoned in the US and also allow Iran access to 

 in frozen funds to use for humanitarian purposes. US Secretary of State Anthony Blinken on August 15, 2023 

“Nothing about our overall approach to Iran has changed. We continue to pursue a strategy of deterrence, of pressure and diplomacy”

He did not deny however, that both countries are engaged in talks regarding a prisoner swap. Blinken also lashed out at Iran for its 

 of anti-government protests in the aftermath of Mahsa (Jina) Amini, a 22-year-old Kurdish woman in the custody of the morality police, and its foreign policy in the Middle East which poses a threat to the 

It remains to be seen whether talks between Iran and US could pave the way for revival of the Joint Comprehensive Plan of Action JCPOA 2015/Iran Nuclear deal. The chances are slim given the fact that the Biden administration’s decision of allowing Iran access to 

 of frozen Iranian assets has faced stiff opposition from Republican policy makers.

Japan’s role in reducing tensions between Iran and the West.

Recently, Japan, the current G7 Chair, has also tried to play a role in reducing ties between the west and Iran. During the visit of Iran’s Foreign Minister, 

 to Japan -- in August 2023 -- as well as Japan’s Deputy Minister for Foreign Affairs, Shigeo Yamada trip  to Iran in 

 Japan asked Iran to stop supplying drones to Russia. Japan has also expressed concerns over Iran’s rising levels of 

Iran’s economy is facing several challenges primarily because of 

 and the impact of covid19. While Tehran’s robust economic ties with China and its dynamic outreach vis-à-vis the Global South are important, in terms of political messaging and symbolism, a less hostile relationship with the west is imperative for Iran’s economy.

Iran’s external outreach: Can economic imperatives take precedence over rhetoric?

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