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For Iran, 2013 could be one of the most challenging years-both at home and in relations with the outside world-since the 1979 revolution. The Islamic Republic faces the potential of stronger economic sanctions and even an Israeli and/or U.S. military strike because of its intransigence in complying with U.N. resolutions on its nuclear program.

But the world's only modern theocracy also must deal with twin domestic challenges-- deepening malaise among the young and increasing tensions among the political elite. Both could be important factors in the presidential election scheduled for June 14, which will feature a new slate of candidates since President Mahmoud Ahmadinejad will have served the two-term limit. Home-grown problems could outweigh the regime's foreign policy woes.

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My Comment: The economy is going to be the number one story for Iranians in 2013 .... high prices, high unemployment, tougher times for those who are dependent on the government for the basics.