Iranian President Hassan Rouhani held bilateral talks with Prime Minister Narendra Modi in New Delhi today, the last leg of his<a href="http://www.wionews.com/india-news/why-iranian-president-hasan-rouhanis-visit-to-india-is-significant-32959">&nbsp;three-day visit</a> to India.

The two sides held &quot;substantive and productive discussion on cooperation in trade and investment, energy, connectivity, defence and security and regional issues,&quot; the external affairs ministry said on Twitter. 
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Civilizational connect, contemporary context! PM <a href="https://twitter.com/narendramodi?ref_src=twsrc%5Etfw">@narendramodi</a> welcomed President of Iran Dr. Rouhani to India. Both leaders held substantive &amp; productive discussion on cooperation in trade &amp; investment, energy, connectivity, defence &amp; security &amp; regional issues. <a href="https://twitter.com/hashtag/DustemanIran?src=hash&amp;ref_src=twsrc%5Etfw">#DustemanIran</a> <a href="https://t.co/LICDykC5F6">pic.twitter.com/LICDykC5F6</a>
&mdash; Raveesh Kumar (@MEAIndia) <a href="https://twitter.com/MEAIndia/status/964766462165561349?ref_src=twsrc%5Etfw">February 17, 2018</a></blockquote>
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The Iranian president earlier met Prime Minister Narendra Modi and President Ram Nath Kovind was earlier accorded a ceremonial reception at the Rashtrapati Bhavan in the presence of the Indian prime minister and president. 
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Iranian President Rouhani poses for a picture with Prime Minister Narendra Modi and President Ram Nath Kovind at New Delhi&#39;s Rashtrapati Bhavan on February 17. (ANI)
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<a href="https://twitter.com/hashtag/Delhi?src=hash&amp;ref_src=twsrc%5Etfw">#Delhi</a>: Iran President Hassan Rouhani inspects guard of honour at Rashtrapati Bhawan. <a href="https://t.co/CX9YVWX6in">pic.twitter.com/CX9YVWX6in</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/964707463063834629?ref_src=twsrc%5Etfw">February 17, 2018</a></blockquote>
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This was followed by a wreath-laying ceremony at the Raj Ghat.

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<a href="https://twitter.com/hashtag/Delhi?src=hash&amp;ref_src=twsrc%5Etfw">#Delhi</a>: Iran President Hassan Rouhani pays tribute to Mahatma Gandhi at Rajghat. <a href="https://t.co/TeDENjZOQY">pic.twitter.com/TeDENjZOQY</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/964712741696167936?ref_src=twsrc%5Etfw">February 17, 2018</a></blockquote>
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India&#39;s external affairs minister Sushma Swaraj also called on the Iranian President.&nbsp;

&quot;Strengthening cooperation in energy, connectivity, IT, education, culture and people-to-people contact came up for discussion,&quot; the external affairs ministry tweeted.

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A close friend in our extended neighbourhood! EAM <a href="https://twitter.com/SushmaSwaraj?ref_src=twsrc%5Etfw">@SushmaSwaraj</a> called on President of Iran Dr. Hassan Rouhani. Strengthening cooperation in energy, connectivity, IT, education, culture and people-to-people contact came up for discussion. <a href="https://twitter.com/hashtag/DustemanIran?src=hash&amp;ref_src=twsrc%5Etfw">#DustemanIran</a> <a href="https://t.co/xFxycjVNYU">pic.twitter.com/xFxycjVNYU</a>
&mdash; Raveesh Kumar (@MEAIndia) <a href="https://twitter.com/MEAIndia/status/964735006567555073?ref_src=twsrc%5Etfw">February 17, 2018</a></blockquote>
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The two sides&nbsp;are expected to sign an agreement allowing India to run operations in the first phase of the strategic Chabahar port project. The port is about 72 km from the Pakistani port of Gwadar, which China is developing. It will bypass Pakistan to open a trade and transport route to landlocked Afghanistan.&nbsp;

India has committed $500 million to the Chabahar port which is expected to boost trade relations between India, Afghanistan and Iran, and will also give access to India to the resource-rich countries of central Asia.

The two sides are also expected to exchange views on regional and international issues of mutual interest and discuss oil and gas cooperation.

The Iranian President was in Hyderabad on February 15 where he visited the Salar Jung Museum, Golconda Fort and Qutb Shahi Tombs. He <a href="http://www.wionews.com/india-news/muslims-non-muslims-hindus-sikhs-are-coexisting-in-peace-in-india-iranian-president-33113">addressed a Muslim congregation</a> in the Southern city yesterday and praised India for the peaceful coexistence of people of different faiths.

The trip comes amid US pressure to review a 2015 international nuclear deal and re-impose sanctions on Iran.

India&#39;s ties with Iran came up in New Delhi in November last year during talks with US Secretary of State Rex Tillerson who said America would not stand in the way of projects that help the Iranian people.

(With inputs from agencies)

Delegation-level talks between PM Modi and Hassan Rouhani took place in the national capital's Hyderabad House

Iranian President Hassan Rouhani held bilateral talks with Prime Minister Narendra Modi in New Delhi today, the last leg of his three-day visit to India. The two sides held "substantive and productive discussion on cooperation in trade and investment, energy, connectivity, defence and security and regional issues," the external affairs ministry said on Twitter. Civilizational connect, contemporary context! PM @narendramodi welcomed President of Iran Dr. Rouhani to India. Both leaders held substantive & productive discussion on cooperation in trade & investment, energy, connectivity, defence & security & regional issues. #DustemanIran pic.twitter.com/LICDykC5F6 — Raveesh Kumar (@MEAIndia) February 17, 2018 × The Iranian president earlier met Prime Minister Narendra Modi and President Ram Nath Kovind was earlier accorded a ceremonial reception at the Rashtrapati Bhavan in the presence of the Indian prime minister and president. Iranian President Rouhani poses for a picture with Prime Minister Narendra Modi and President Ram Nath Kovind at New Delhi's Rashtrapati Bhavan on February 17. (ANI) × #Delhi: Iran President Hassan Rouhani inspects guard of honour at Rashtrapati Bhawan. pic.twitter.com/CX9YVWX6in — ANI (@ANI) February 17, 2018 × This was followed by a wreath-laying ceremony at the Raj Ghat. #Delhi: Iran President Hassan Rouhani pays tribute to Mahatma Gandhi at Rajghat. pic.twitter.com/TeDENjZOQY — ANI (@ANI) February 17, 2018 × India's external affairs minister Sushma Swaraj also called on the Iranian President. "Strengthening cooperation in energy, connectivity, IT, education, culture and people-to-people contact came up for discussion," the external affairs ministry tweeted. A close friend in our extended neighbourhood! EAM @SushmaSwaraj called on President of Iran Dr. Hassan Rouhani. Strengthening cooperation in energy, connectivity, IT, education, culture and people-to-people contact came up for discussion. #DustemanIran pic.twitter.com/xFxycjVNYU — Raveesh Kumar (@MEAIndia) February 17, 2018 × The two sides are expected to sign an agreement allowing India to run operations in the first phase of the strategic Chabahar port project. The port is about 72 km from the Pakistani port of Gwadar, which China is developing. It will bypass Pakistan to open a trade and transport route to landlocked Afghanistan. India has committed $500 million to the Chabahar port which is expected to boost trade relations between India, Afghanistan and Iran, and will also give access to India to the resource-rich countries of central Asia. The two sides are also expected to exchange views on regional and international issues of mutual interest and discuss oil and gas cooperation. The Iranian President was in Hyderabad on February 15 where he visited the Salar Jung Museum, Golconda Fort and Qutb Shahi Tombs. He addressed a Muslim congregation in the Southern city yesterday and praised India for the peaceful coexistence of people of different faiths. The trip comes amid US pressure to review a 2015 international nuclear deal and re-impose sanctions on Iran. India's ties with Iran came up in New Delhi in November last year during talks with US Secretary of State Rex Tillerson who said America would not stand in the way of projects that help the Iranian people. (With inputs from agencies)

Iranian President Hassan Rouhani, PM Modi hold 'substantive' bilateral talks

Iranian President <a href="http://www.wionews.com/world/hasan-rouhani-irans-diplomatic-sheikh-32962">Hasan Rouhani</a> begins his three-day visit to India from today. He will arrive at Hyderabad&#39;s Begumpet airport on Thursday evening and during his visit, the two countries will discuss regional and international issues of mutual interest.

<a href="http://www.wionews.com/videos/wion-gravitas-rouhani-3rd-iran-leader-to-visit-india-in-15-years-8357">Rouhani&#39;s visit</a>, his first after becoming Iran&#39;s President in 2013, is significant in many ways.

Rouhani is persona non grata in some countries such as the United States and Israel, which views a nuclear Iran as an existential threat. US President Donald Trump has already threatened to pull out of the Iran nuclear deal and impose more sanctions against Tehran.

In such a scenario, Prime Minister Narendra Modi - who has invested a great deal of time and energy to strengthen ties with both the US and Israel - has signalled his intent to engage Iran. In doing so, Modi has showcased Indian foreign policy&#39;s dexterity, maturity and nimbleness.

The visit assumes significance in a regional context too.

Israel and Iran have been, and are, at loggerheads. Their proxy war manifested itself most recently in Syria, after Israel shot down an alleged Iranian drone that entered Israeli airspace and Syrian forces retaliated by bringing down an Israeli military aircraft.

President Bashar al-Assad of Syria enjoys the support of Iran and Russia. But, Prime Minister Benjamin Netanyahu says Iran, coupled with its influence in Lebanon and Syria, poses an existential threat to the state of Israel.

The messaging is clear: India will independently pursue ties with most countries of consequence in the Arab world and the Persian Gulf.

In recent months, India has straddled competing narratives or interests in West Asia with finesse, be it the Israel-Palestine conundrum, or the Saudi Arabia-Iran rivalry for regional supremacy.

If Modi became the first Indian Prime Minister to visit Israel in July last year, he also made it a point to visit Palestine on his most recent West Asia swing.

He visited the Sunni Saudi Arabia and the Shi&#39;ite Iran in 2016, and travelled to the United Arab Emirates and Qatar too. He has also hosted a number of West Asian leaders in New Delhi. Later this month, King Abdullah of Jordan is expected to visit India.

Rouhani will land at the Begumpet Airport around 4pm on Thursday where Union Minister of State for Power R K Singh will welcome him.

During his two-day visit to the city, the Iranian president will be accompanied by 21 delegates.

Rouhani will address a congregation at the historic Mecca Masjid in Hyderabad after offering Friday prayers, sources said, adding that religious scholars from different schools of thought will also participate in the session. He will also interact with the Iranians settled in Hyderabad.

Rouhani is scheduled to visit the Salar Jung Museum on Friday.

This is the second time Rouhani will be visiting Hyderabad, but it is his first visit after assuming charge as the president. He will leave for New Delhi tomorrow.

The messaging is clear: India will independently pursue ties with most countries of consequence in the Arab world and the Persian Gulf.

Iranian President Hasan Rouhani begins his three-day visit to India from today. He will arrive at Hyderabad's Begumpet airport on Thursday evening and during his visit, the two countries will discuss regional and international issues of mutual interest. Rouhani's visit, his first after becoming Iran's President in 2013, is significant in many ways. Rouhani is persona non grata in some countries such as the United States and Israel, which views a nuclear Iran as an existential threat. US President Donald Trump has already threatened to pull out of the Iran nuclear deal and impose more sanctions against Tehran. In such a scenario, Prime Minister Narendra Modi - who has invested a great deal of time and energy to strengthen ties with both the US and Israel - has signalled his intent to engage Iran. In doing so, Modi has showcased Indian foreign policy's dexterity, maturity and nimbleness. The visit assumes significance in a regional context too. Israel and Iran have been, and are, at loggerheads. Their proxy war manifested itself most recently in Syria, after Israel shot down an alleged Iranian drone that entered Israeli airspace and Syrian forces retaliated by bringing down an Israeli military aircraft. President Bashar al-Assad of Syria enjoys the support of Iran and Russia. But, Prime Minister Benjamin Netanyahu says Iran, coupled with its influence in Lebanon and Syria, poses an existential threat to the state of Israel. The messaging is clear: India will independently pursue ties with most countries of consequence in the Arab world and the Persian Gulf. In recent months, India has straddled competing narratives or interests in West Asia with finesse, be it the Israel-Palestine conundrum, or the Saudi Arabia-Iran rivalry for regional supremacy. If Modi became the first Indian Prime Minister to visit Israel in July last year, he also made it a point to visit Palestine on his most recent West Asia swing. He visited the Sunni Saudi Arabia and the Shi'ite Iran in 2016, and travelled to the United Arab Emirates and Qatar too. He has also hosted a number of West Asian leaders in New Delhi. Later this month, King Abdullah of Jordan is expected to visit India. Rouhani will land at the Begumpet Airport around 4pm on Thursday where Union Minister of State for Power R K Singh will welcome him. During his two-day visit to the city, the Iranian president will be accompanied by 21 delegates. Rouhani will address a congregation at the historic Mecca Masjid in Hyderabad after offering Friday prayers, sources said, adding that religious scholars from different schools of thought will also participate in the session. He will also interact with the Iranians settled in Hyderabad. Rouhani is scheduled to visit the Salar Jung Museum on Friday. This is the second time Rouhani will be visiting Hyderabad, but it is his first visit after assuming charge as the president. He will leave for New Delhi tomorrow.

Why Iranian President Hasan Rouhani's visit to India is significant

Iran&#39;s President Hassan Rouhani warned the US against tearing up the nuclear deal as he was inaugurated for a second term Saturday, but he also faces challenges closer to home amid accusations he is rolling over to conservatives.

Rouhani met with EU foreign policy chief Federica Mogherini before the ceremony and called for greater efforts to safeguard the 2015 nuclear deal between Tehran and world powers in the face of new US sanctions.

&quot;Iran will not be the first to violate the nuclear deal...but nor will it stay silent when the United States fails to respect its commitments,&quot; he told the packed parliament hall.

&quot;Iran has proved that it will respond to respect with respect, and to sanctions and threats with an appropriate response and with resistance,&quot; he added.

Some of Iran&#39;s older friends, including Zimbabwean President Robert Mugabe, also attended the ceremony which came two days after Rouhani was officially sworn in by supreme leader Ayatollah Ali Khamenei.

The emir of Qatar, which has fallen out with its Gulf allies in part over ties to Iran, was notably absent, despite attending Rouhani&#39;s last inauguration in 2013.

Reformist criticism 
 
But among Iranians, the real attention was on who would be named to Rouhani&#39;s new cabinet.

He has already been barraged with criticism over indications that women would again be entirely absent and that his reformist allies would barely be represented.

Rouhani&#39;s last government had three women among a large cohort of vice presidents, but they lacked ministerial roles that would require approval by parliament.

&quot;It was the reformists that allowed him to win the elections in 2013 and 2017... he must listen to those who supported him,&quot; Rassoul Montajabnia of the reformist National Confidence party told the Arman newspaper.

Rouhani won a convincing victory over hardline cleric Ebrahim Raisi in the May presidential election, vowing to continue rebuilding ties with the West and easing social restrictions at home.

That helped win over the reformists - whose candidates dropped out of the last two elections to ensure his victory.

&quot;Rouhani created a lot of expectation and now there is a sense that he is retreating from his promises,&quot; said Ali Shakourirad, head of the reformist People&#39;s Unity Party.

The absence of women was down to pressure from religious conservatives behind the scenes, Shakourirad said.

&quot;Rouhani didn&#39;t want to make his task any more complicated than it already is,&quot; he told AFP.

The final line-up is due to be announced in coming days, and must then be approved by parliament.

Backroom bargaining 
 
Despite the furore, the reshuffle is not expected to touch big names such as Foreign Minister Mohammad Javad Zarif and Oil Minister Bijan Namadar Zanganeh.

&quot;The main ministers are very likely to stay in place,&quot; said Henry Smith, Iran analyst with consultancy Control Risks.

&quot;Rouhani will have a fairly smooth time getting parliament to approve his appointees. He&#39;s been doing back and forth consultations with the necessary power centres - the parliament speaker, supreme leader, the Revolutionary Guards -- and I don&#39;t think you&#39;ll see a significant change in economic or indeed social policy,&quot; he added.

Despite his efforts to build backroom consensus, hardliners have given Rouhani a rough ride since his election, perhaps worried at the growing strength of the reformists.

The arrest of his brother on corruption charges was interpreted by some as a shot across the bow by the hardline judiciary.

Rouhani also triggered a war of words with the Revolutionary Guards after criticising their outsized role in the economy, although analysts say this is part of a cautious realignment of Iran&#39;s policies to balance its security priorities with the need to attract investment.

&quot;Rouhani has no interest in pushing the Revolutionary Guards totally out of the economy. It&#39;s about creating enough space so Iran can get the foreign investment and technology it needs,&quot; said Smith.

Investment has belatedly started to arrive in the wake of the 2015 nuclear deal that eased sanctions in exchange for curbs on Iran&#39;s nuclear programme, notably through last month&#39;s billion-dollar gas deal with France&#39;s Total and China&#39;s CNPC.

Billions more are needed to jump-start the stagnant economy and tackle a jobless rate of 12.7 percent.

But with Washington imposing yet more sanctions this week, Iran&#39;s re-engagement with the world remains largely stalled.

&quot;The problem is Iran feels the need to react to these moves by the US, which just give the US fuel,&quot; said Smith.

Mogherini held a meeting ahead of the inauguration with Zarif, who criticised European governments for their support of US calls for UN action in response to an Iranian satellite launch on July 27.

&quot;This is the wrong path,&quot; Zarif said.

Rouhani warned that while Iran would not be the first to violate the nuclear deal, it would not 'stay silent' if the US failed to respect its commitments

Iran's President Hassan Rouhani warned the US against tearing up the nuclear deal as he was inaugurated for a second term Saturday, but he also faces challenges closer to home amid accusations he is rolling over to conservatives. Rouhani met with EU foreign policy chief Federica Mogherini before the ceremony and called for greater efforts to safeguard the 2015 nuclear deal between Tehran and world powers in the face of new US sanctions. "Iran will not be the first to violate the nuclear deal...but nor will it stay silent when the United States fails to respect its commitments," he told the packed parliament hall. "Iran has proved that it will respond to respect with respect, and to sanctions and threats with an appropriate response and with resistance," he added. Some of Iran's older friends, including Zimbabwean President Robert Mugabe, also attended the ceremony which came two days after Rouhani was officially sworn in by supreme leader Ayatollah Ali Khamenei. The emir of Qatar, which has fallen out with its Gulf allies in part over ties to Iran, was notably absent, despite attending Rouhani's last inauguration in 2013. Reformist criticism But among Iranians, the real attention was on who would be named to Rouhani's new cabinet. He has already been barraged with criticism over indications that women would again be entirely absent and that his reformist allies would barely be represented. Rouhani's last government had three women among a large cohort of vice presidents, but they lacked ministerial roles that would require approval by parliament. "It was the reformists that allowed him to win the elections in 2013 and 2017... he must listen to those who supported him," Rassoul Montajabnia of the reformist National Confidence party told the Arman newspaper. Rouhani won a convincing victory over hardline cleric Ebrahim Raisi in the May presidential election, vowing to continue rebuilding ties with the West and easing social restrictions at home. That helped win over the reformists - whose candidates dropped out of the last two elections to ensure his victory. "Rouhani created a lot of expectation and now there is a sense that he is retreating from his promises," said Ali Shakourirad, head of the reformist People's Unity Party. The absence of women was down to pressure from religious conservatives behind the scenes, Shakourirad said. "Rouhani didn't want to make his task any more complicated than it already is," he told AFP. The final line-up is due to be announced in coming days, and must then be approved by parliament. Backroom bargaining Despite the furore, the reshuffle is not expected to touch big names such as Foreign Minister Mohammad Javad Zarif and Oil Minister Bijan Namadar Zanganeh. "The main ministers are very likely to stay in place," said Henry Smith, Iran analyst with consultancy Control Risks. "Rouhani will have a fairly smooth time getting parliament to approve his appointees. He's been doing back and forth consultations with the necessary power centres - the parliament speaker, supreme leader, the Revolutionary Guards -- and I don't think you'll see a significant change in economic or indeed social policy," he added. Despite his efforts to build backroom consensus, hardliners have given Rouhani a rough ride since his election, perhaps worried at the growing strength of the reformists. The arrest of his brother on corruption charges was interpreted by some as a shot across the bow by the hardline judiciary. Rouhani also triggered a war of words with the Revolutionary Guards after criticising their outsized role in the economy, although analysts say this is part of a cautious realignment of Iran's policies to balance its security priorities with the need to attract investment. "Rouhani has no interest in pushing the Revolutionary Guards totally out of the economy. It's about creating enough space so Iran can get the foreign investment and technology it needs," said Smith. Investment has belatedly started to arrive in the wake of the 2015 nuclear deal that eased sanctions in exchange for curbs on Iran's nuclear programme, notably through last month's billion-dollar gas deal with France's Total and China's CNPC. Billions more are needed to jump-start the stagnant economy and tackle a jobless rate of 12.7 percent. But with Washington imposing yet more sanctions this week, Iran's re-engagement with the world remains largely stalled. "The problem is Iran feels the need to react to these moves by the US, which just give the US fuel," said Smith. Mogherini held a meeting ahead of the inauguration with Zarif, who criticised European governments for their support of US calls for UN action in response to an Iranian satellite launch on July 27. "This is the wrong path," Zarif said.

Rouhani sworn in as Iran President, warns US over violating nuclear deal

After his re-election triumph, President Hassan Rouhani must now grapple with a fiercely hostile United States and hardliners at home as he struggles to build a more moderate and connected Iran.

Iran&#39;s entrenched conservative establishment -- particularly in the judiciary and elite Revolutionary Guards -- remain deeply suspicious of Rouhani&#39;s talk of civil liberties and building ties with the West.

&quot;The non-elected institutions will try to prevent Rouhani from applying his reform agenda,&quot; said Clement Therme, Iran analyst for the International Institute for Strategic Studies.

&quot;So he will focus on the economic side. If the daily lives of the population improve, he will be in a stronger position to push for structural reforms on civil rights.&quot;

Fixing the economy will not be easy. Despite a nuclear deal with world powers, Washington still maintains a raft of sanctions that are scaring off global banks and foreign investors.

US President Donald Trump has gone further, threatening to tear up the nuclear deal and visiting Iran&#39;s bitter regional rival Saudi Arabia this weekend, where he signed a $110 billion arms deal described as targeting &quot;malign Iranian influence&quot; in the region.

Nonetheless, European and Asian governments are determined to keep the nuclear deal alive and take full advantage of the lucrative investment opportunities in Iran.

They are cheered by Rouhani&#39;s victory over hardliner Ebrahim Raisi, who had threatened a tougher, more insular approach to foreign relations.

&quot;A lot of investors I hadn&#39;t heard from for three months were suddenly phoning me this morning. Some are already booking their tickets,&quot; said Farid Dehdilani, international adviser for the Iranian Privatisation Organisation after results were announced on Saturday.

&quot;Dr Rouhani will more aggressively pursue his economic agenda -- investing in factories, production and absorbing foreign capital. I think he&#39;ll make his cabinet younger and more agile,&quot; he said.

&#39;A smarter politician&#39;&nbsp;

Challenging the security forces, which control large swathes of the economy and need Iran&#39;s resources as a source of patronage, will be tough.

And Rouhani notably failed to win the release of jailed opposition leaders or prevent the arrest of several dual nationals by intelligence services outside his control.

Many fear his second term could mirror that of reformist president Mohammad Khatami in the early 2000s, when every attempt at reform was frustrated by the hardline establishment.

But Rouhani, a long-time regime insider, may be better placed than his predecessors, said politics professor Foad Izadi, of Tehran University.

&quot;Rouhani has shown himself to be a smarter politician than Khatami was,&quot; said Izadi.

&quot;He&#39;s been part of the system long enough to know how to navigate it. Khatami was more ideological which reduced his ability to get things done.&quot;

Crucially, Rouhani&#39;s technocratic approach has allowed him to co-opt key conservatives such as parliament speaker Ali Larijani.

&quot;The alliance with Larijani has been very helpful to Rouhani in getting his ministers and policies approved. That will continue to be crucial in his second term,&quot; said Izadi.

Next supreme leader?&nbsp;

The big long-term question is whether Rouhani can influence the rise of the next supreme leader after the death of the ageing Ayatollah Ali Khamenei.

Raisi, touted as a possible successor, is now out of the running, said Izadi.

&quot;Maybe he will come back in four years, but with this type of showing we can rest assured that Raisi will not be the next supreme leader. The leader must show popular support.&quot;

But with hardliners firmly in control of the Assembly of Experts that will choose the next leader, Rouhani and his allies have little influence over the succession.

Nonetheless, this weekend&#39;s election has given a clear indication that Iran&#39;s youthful population supports his vision for the country&#39;s future.

&quot;Iranian people no longer believe in economic populism and radical change,&quot; said Ali Vaez of the International Crisis Group.

&quot;They have the maturity to understand that the solution to their country&#39;s predicaments are in competent management of the economy and moderation in international relations.&quot;

(AFP)

The Iranian non-elected establishment is keenly distrubed by Hassan Rouhani's talk of expanding civil liberties and building bridges with the West

After his re-election triumph, President Hassan Rouhani must now grapple with a fiercely hostile United States and hardliners at home as he struggles to build a more moderate and connected Iran. Iran's entrenched conservative establishment -- particularly in the judiciary and elite Revolutionary Guards -- remain deeply suspicious of Rouhani's talk of civil liberties and building ties with the West. "The non-elected institutions will try to prevent Rouhani from applying his reform agenda," said Clement Therme, Iran analyst for the International Institute for Strategic Studies. "So he will focus on the economic side. If the daily lives of the population improve, he will be in a stronger position to push for structural reforms on civil rights." Fixing the economy will not be easy. Despite a nuclear deal with world powers, Washington still maintains a raft of sanctions that are scaring off global banks and foreign investors. US President Donald Trump has gone further, threatening to tear up the nuclear deal and visiting Iran's bitter regional rival Saudi Arabia this weekend, where he signed a $110 billion arms deal described as targeting "malign Iranian influence" in the region. Nonetheless, European and Asian governments are determined to keep the nuclear deal alive and take full advantage of the lucrative investment opportunities in Iran. They are cheered by Rouhani's victory over hardliner Ebrahim Raisi, who had threatened a tougher, more insular approach to foreign relations. "A lot of investors I hadn't heard from for three months were suddenly phoning me this morning. Some are already booking their tickets," said Farid Dehdilani, international adviser for the Iranian Privatisation Organisation after results were announced on Saturday. "Dr Rouhani will more aggressively pursue his economic agenda -- investing in factories, production and absorbing foreign capital. I think he'll make his cabinet younger and more agile," he said. 'A smarter politician' Challenging the security forces, which control large swathes of the economy and need Iran's resources as a source of patronage, will be tough. And Rouhani notably failed to win the release of jailed opposition leaders or prevent the arrest of several dual nationals by intelligence services outside his control. Many fear his second term could mirror that of reformist president Mohammad Khatami in the early 2000s, when every attempt at reform was frustrated by the hardline establishment. But Rouhani, a long-time regime insider, may be better placed than his predecessors, said politics professor Foad Izadi, of Tehran University. "Rouhani has shown himself to be a smarter politician than Khatami was," said Izadi. "He's been part of the system long enough to know how to navigate it. Khatami was more ideological which reduced his ability to get things done." Crucially, Rouhani's technocratic approach has allowed him to co-opt key conservatives such as parliament speaker Ali Larijani. "The alliance with Larijani has been very helpful to Rouhani in getting his ministers and policies approved. That will continue to be crucial in his second term," said Izadi. Next supreme leader? The big long-term question is whether Rouhani can influence the rise of the next supreme leader after the death of the ageing Ayatollah Ali Khamenei. Raisi, touted as a possible successor, is now out of the running, said Izadi. "Maybe he will come back in four years, but with this type of showing we can rest assured that Raisi will not be the next supreme leader. The leader must show popular support." But with hardliners firmly in control of the Assembly of Experts that will choose the next leader, Rouhani and his allies have little influence over the succession. Nonetheless, this weekend's election has given a clear indication that Iran's youthful population supports his vision for the country's future. "Iranian people no longer believe in economic populism and radical change," said Ali Vaez of the International Crisis Group. "They have the maturity to understand that the solution to their country's predicaments are in competent management of the economy and moderation in international relations." (AFP)

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