The upcoming elections are a test on Ahmadinejad’s economic poli-cies. The paper analyses the measures taken by the president in the last few years and the over-all economic situation of the coun-try. Although sanction are taking a toll, magnified by structural prob-lems and corruption, macroeco-nomic indicators indicate that the economy is not about to collapse. Iran is not isolated either: while Tehran has had to scale down business with Europe, economic links are increasingly being forged with China, Russia and Latin America. The author argues that neither sanctions nor a military attack will spark a regime change. Negotiations are the key solution, though only a disinterested me-diator will have some chance of success.