In both the media and the prevalent discourse within the political and security community, Iran commands the image of a strong, unwavering regional power, scoring success after success in its quest for regional hegemony. However, the conflict in Yemen between Saudi Arabian-led forces and the Houthis, supported by Iran, offers a more balanced view of Iran’s strengths and weaknesses, i.e., the limits of its power. This understanding is important when trying to assess the implications of the nuclear agreement with Iran and the steps that must be taken to curb the possible negative ramifications of the expected improvement in Iran’s economic situation.