With mounting pressures over its disputed nuclear program, Iran may make small concessions in the upcoming nuclear talks to be held between the Islamic republic and the five permanent members of the UN Security Council plus Germany (P5+1) in Istanbul of Turkey on Saturday.

Analysts have said that, economic hardship and war-drum beating by Israel and western countries will possibly lead Iran to make some small concessions in the talks in order to keep the window open for further talks and diplomatic efforts.

Under great economic pressure and international isolation, Iran now has some willingness to return to the negotiating table, Dr. Sadeq Zibakalam, a professor of political science at Tehran University, told Xinhua in a recent interview.

In the run-up to the talks, Iranian officials have made some remarks that imply Tehran might take steps to ease its rising tensions with the West.

INTENSIFIED SANCTION PRESSURES

Since last round of nuclear talks between Iran and the P5+1 failed to reach any results, the Islamic republic has undergone huge sanction pressures slapped by the West.

The United States has imposed a comprehensive economic embargo against Iran, which includes sanctions on the companies doing business with Iran and sanctions on Iran's financial institutions.

In February, the United States froze all assets of Iran's central bank and other financial institutions as well as those of the Iranian government.

The EU, in a follow suit move, also reduced its dealings with Iran in terms of foreign trade, financial services, energy sectors and technologies, and has banned its member countries' insurance businesses with the Iranian government and companies.

On January 23, the EU agreed to an oil embargo on Iran to be effective from July and a freeze on the assets of Iran's central bank, a decision badly threatens Iran's economy as oil exports provide about 80 percent of Tehran's revenues.

To make things worse, EU in March decided to instruct the Brussels-based SWIFT financial network to disconnect 25 Iranian banks, including Iran's central bank, from its services.

As a sign of sanctions' impacts, the Iranian currency lost much of its value against the U.S. dollar in the past year, and the inflation soared beyond the Iranian people's tolerance.

Zibakalam said due to its heavy dependence on oil revenues, if Tehran takes no action, the Western sanctions will affect the country's economy in the coming years.

"Sanctions are affecting Iran, especially those slashed on Iran 's central bank. Iran has found it difficult to import and export, " he said.

LIVELIHOOD BADLY AFFECTED

Despite the official denial, the sanctions have stricken the lives of ordinary Iranians hard.

With the rapid depreciation of the Iranian rial, Iranians are struggling to cope with the rising living costs, and even those from the middle class are complaining about the drastic price hike.

"I have worked for 25 years... I receive (just) 400 thousand Tomans every month (as a pension). What can I do with these high prices? Pay for the rent of a house? Pay for the living costs? Preserve my honor? What can I do?" a retired female employee from Iran Medical Science University told Xinhua.

Another young lady from an affluent family, who introduced herself as Sali, said "all of us have problems, full of problems. The economic situation is terrible."

In Iran, the annual inflation rate in the past 9 years has been over 15 percent. In some years including the past year, inflation rate hovered over 25 percent, which was rarely seen in other countries.

Unofficial statistics say inflation rate in the past year have startlingly reached over 35 percent.

As Western countries tightened their sanctions on Tehran, Iran' s economic situation worsened rapidly during the past six months, with prices of many commodities rising by over 50 percent.

Milad Rezazadeh, a shop owner in northern Tehran, said "our sales have decreased compared with last year. People's purchasing power has declined. And we now buy less (from wholesalers). Price of an article worth 8000 Tomans (last year) has risen to 13,000 Tomans."

"The inflation in the past four months has been very high. Regarding imported goods, the inflation rate is 100 percent. People like me, who receive a fixed salary, can not cope with the inflation." Shafiei, a civil servant, said.

POSSIBLE CONCESSIONS BY TEHRAN

With the bitter facts of Iran's economy, experts believe that Iran will possibly make some small concessions in the upcoming nuclear talks.

Days ahead of the nuclear talks, Iranian officials, to some extent, softened their tones on the nuclear issue.

Saeed Jalili, Iran's chief nuclear negotiator, said Wednesday that Iran will offer "new initiatives" at the nuclear talks with P5+1.

On Sunday, Iranian President Mahmoud Ahmadinejad said that Iran wants nothing beyond the rights granted by the Non-Proliferation Treaty (NPT) and Iran will put forward practical proposals in the upcoming nuclear talks with P5+1.

Iran will not produce 20-percent enriched uranium to an amount beyond its needs, head of Atomic Energy Organization of Iran Fereidoon Abbasi said Sunday.

However, Zibakalam noted that although Iran might make some small concessions, it will not completely give in to U.S. pressures, adding that Iran's long-standing nuclear dispute will be solved in a step-by-step process.

"I'm trying to say that Iran is genuine (about the talks). Iran has felt the bite of the sanctions. But that does not mean that Iran is going to give in to whatever the United States says," said Zibakalam. "Iran is willing to make concessions, provided that the P5+1 countries also make some concessions to Iran."