President Trump has announced that the United States will pull out of the Iran nuclear deal, pledging to reinstate the “highest level” of nuclear sanctions on Iran and any other country found to be assisting Iran’s nuclear program.

The move sounds the death knell for one of the central planks of former president Obama’s legacy.

Here’s what to expect from the immediate aftermath:

Impact

Iran’s economy will go from bad to worse. In many ways, the economic dividend that the Rouhani government expected from the Iran nuclear deal never really arrived. The rial has been in a free-fall for much of 2018, with massive line-ups at banks a common sight throughout the country. In April the currency hit a record low, and it’s likely to fall further given this afternoon’s announcement. Unsurprisingly, currency speculation and capital flight have become major headaches for the government as more and more Iranians transfer their assets into euros or US dollars. Unemployment has also been dogged, hovering around the 11.5% level, and nearly half of the country’s unemployed hold a university degree.