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Amid shifting regional alliances, will Jordan open up to Iran?

As Jordan seems to be growing more isolated in the region with the changing alliances, pundits are calling on the government to consider new moves, including forging an alliance with Iran.
Jordan's King Abdullah (R) walks with Iranian Foreign Minister Mohammad Javad Zarif befor their meeting at the Royal Palace in Amman January 14, 2014 REUTERS/Jordanian Royal Palace/Yousef Allan/Handout via Reuters (JORDAN - Tags: POLITICS ROYALS) ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. FOR EDITORIAL USE ONLY. NOT FOR SALE FOR MARKETING OR ADVERTISING CAMPAIGNS. THIS PICTURE IS DISTRIBUTED EXACTLY AS RECEIVED BY REUTERS, AS A SERVICE TO CLIENTS - GM1EA1F08CI01

As Jordanians bade farewell to an exceptionally bad year for the kingdom in terms of worsening economic and social conditions, forecasts for 2018 were noticeably not optimistic. Parliament is expected to pass a controversial state budget that will approve an International Monetary Fund (IMF) mandated suspension of subsidies that will include bread — an essential daily staple for millions of Jordanians. In addition, a draft income tax law will limit exemptions for paying income tax and lower the threshold for those who will have to pay the tax. Economic growth remains sluggish and the state budget continues to suffer from deficits, while foreign and local debt has passed the $36 billion mark. Economists have warned that foreign aid to the kingdom might also decrease in 2018.

But the gloomy economic picture is only part of the current state of pessimism. Pundits have pointed to major geopolitical shifts in the region during 2017 that put additional pressure on the kingdom. They included worsening relations with Israel, a perception that traditional Gulf allies are negotiating secretly with Israel to pass President Donald Trump’s so-called “ultimate deal” at the expense of both Jordan and the Palestinians, and most recently the fallout from Trump’s unilateral recognition of Jerusalem as Israel’s capital.

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