Iran is likely to ride out the storm from U.S. oil sanctions, suffering recession but no economic meltdown, thanks to rising crude prices and deepening divisions between the United States and other major powers, officials and analysts say.

“Iran’s situation is better than pre-2016 because of high oil prices and the fact that the U.S. is isolated this time,” said a European diplomat who asked not to be further identified.

Iran emerged in early 2016 from years of global sanctions under a deal with world powers that curbed its disputed nuclear program. But President Donald Trump withdrew the United States from the deal in May, calling it flawed to Iran’s advantage, and reimposed far-reaching U.S. sanctions in phases, with the most damaging oil and banking penalties taking effect on November 5.

(Source: Reuters)