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A new approach to normalising relations with Iran provides a chance for geopolitical stability and regional security

April 29, 2025 at 1:15 pm

The Iranian and other flags flutter in front of the International Atomic Energy Agency (IAEA) organisation’s headquarters in Vienna, Austria, May 24, 2021. [Michael Gruber/Getty Images]

In today’s rapidly shifting geopolitical landscape and strategic rivalries at the regional level, concerns surrounding Iran’s nuclear programme and the challenges posed by pressure-driven and isolationist policies have remained central to international discourse. While some argue that negotiating with Iran equates to legitimising its nuclear ambitions and enrichment activities, deeper analysis reveals that excessive pressure and total isolation of Iran would not only undermine the foundations of regional stability, but also create power vacuums and multiple crises. So, based on statistical data, historical experiences and geopolitical analysis, it is worth examining the necessity of adopting a novel and multilateral approach to normalising relations with Iran.

Reports from the International Atomic Energy Agency (IAEA) and the World Bank show that, during periods of isolationist policies, countries have experienced declining foreign investment and increased economic volatility. In contrast, during periods of constructive engagement, nations have seen economic growth and improved public welfare. For example, post-Cold War analyses reveal that excessive pressure and complete isolation often led to domestic crises and diminished economic competitiveness.

These findings, both nationally and regionally, underscore that transparent legal frameworks and constructive engagement foster conditions for large-scale investments and economic growth. Graphs of economic indicators demonstrate a clear correlation between reduced military tensions and improved economic performance.

Analyses by reputable international think tanks such as Chatham House and the Middle East Institute show that pressure and isolation have failed to mitigate geopolitical threats and have often created new challenges. In contrast, dialogue-based strategies and direct engagement have proven effective in reducing tensions and improving international communication.

Reopening diplomatic channels and establishing space for constructive negotiations can not only ensure strict oversight of Iran’s nuclear commitments, but also play a vital role in restoring regional balance.

Hence, normalising relations with Iran should be viewed as a tool for ensuring mutual security as well as a bridge to transform Iran’s geopolitical role into a strategic partner.

Key components of the normalisation strategy include the establishment of legal and regulatory frameworks. A comprehensive agreement based on legal commitments requires transparent and enforceable mechanisms for curbing military nuclear programmes and controlling sensitive technologies. The involvement of international regulatory bodies such as the IAEA is crucial. Legal guarantees can enhance mutual trust and prevent conflicts rooted in ambiguity.

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Lifting economic sanctions and creating an integrated framework to attract multibillion-dollar investments is another critical step towards normalisation. World Bank data and other economic sources confirm that a transparent and open environment leads to economic expansion and mitigates volatility caused by pressure policies. Foreign investments in key sectors such as energy, technology and infrastructure can, simultaneously, generate employment, improve macroeconomic indicators and enhance economic resilience.

Moreover, improving diplomatic structures and regional engagement, with the reopening of embassies and creating information exchange centres would provide a solid platform for monitoring treaty obligations. Direct and regular interactions increase transparency, narrow communication gaps and facilitate peaceful conflict resolution. This approach is particularly crucial in countering the threats posed by extremist and terrorist movements in the Middle East, contributing significantly to regional security.

From a geopolitical perspective, a normalised Iran can play a crucial role in easing regional tensions and securing the Persian Gulf.

By transforming Iran from a rival into a strategic partner, a foundation for convergence and strong regional alliances can emerge, alliances that will be effective in addressing shared threats, including Russian influence and economic challenges from competition with China.

Ultimately, normalising relations with Iran represents a wise and multifaceted strategy to shift from pressure and isolation towards constructive engagement. Backed by credible data, historical experience, and geopolitical insights, it becomes clear that a pressure-only model not just fails to deliver stability, but also incurs significant economic and military costs. In contrast, constructive engagement with Iran offers a pathway to reduce tensions, redefine Iran’s geopolitical role and cultivate a strategic partnership in the spheres of security, economy and diplomacy.

With the removal of sanctions and the reopening of diplomatic channels, Iran can serve as a hub for major investment and economic growth. At the same time, internal structural reforms and the strengthening of civil institutions can pave the way for a responsive and modern government, contributing to sustainable stability both domestically and internationally.

In conclusion, the international community, especially foreign policy decision-makers in think tanks such as the Foundation for Defence of Democracies, must move beyond narrow, exclusivist approaches. Instead, by drawing on past experiences and documented evidence, they should promote models based on constructive engagement and mutual trust. Such a strategy is not only effective in reducing the threats posed by nuclear ambitions and terrorism in the region, but also lays the groundwork for a more balanced geopolitical order in the Middle East and beyond.

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The views expressed in this article belong to the author and do not necessarily reflect the editorial policy of Middle East Monitor.