Iran

The post-2003 Persian Gulf sub-region has witnessed intensified geopolitical conflicts and competition between Iran and the Gulf Arab states, particularly between Iran and Saudi Arabia. Scholars and experts have mostly analysed the conflicts through political and strategic prisms while neglecting their economic dimensions. This article analyses the various post-2003 conflicts between Iran and the Gulf Arab states with a focus on how economic integration or the lack thereof creates the incentives to resolve or sustain the conflicts.

After the June 2013 election when Hassan Rouhani became president of Iran, Iranian foreign policy changed course. The fundamental transformation is the result of his decision to open up a fresh dialogue with the United States and other Great Powers to resolve the nuclear stand-off that would end the country’s isolation, lift the biting US-led sanctions and allow Iran to open a new chapter in its economic policy and international diplomacy.