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Significance

Tehran's regional ties have been strained by its support for Syria's President Bashar al-Assad, Hezbollah in Lebanon, Shia militias in Iraq, and sectarian groups in the Gulf. The nuclear deal represents a significant achievement for President Hassan Rouhani's electoral pledge to bring Iran out of international isolation; however, its impact on Iran's tense regional relationships may be more limited.

Impacts

Proxy conflicts between Gulf- and Iran-backed groups in Syria and Yemen will increase.

Tehran's support for Assad will remain the greatest obstacle to regional detente.

The Rouhani government will promote trade and investment ties with Turkey, Lebanon, Iraq and the Gulf states.

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