President Donald Trump’s decision to withdraw the U.S. from the nuclear agreement (JCPOA) with Iran has impacted the Iranian economy, contributing to the weakening of the currency and the decline in GDP. However, the most important challenges for Iran’s economy are structural problems, including bad governance, corruption, and excessive public sector participation. Attempts to solve these issues have been criticised by ultra-conservatives in Iran who are interested in maintaining the status quo. If reforms were to be successful though, that would create an opportunity for the EU to implement a wider trade mechanism with Iran while stifling the U.S. objections.