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There is little doubt that Iran's clerical oligarchy has been severely stunned and badly bruised by events following the disputed June election. The regime has suffered a huge blow to its legitimacy, and its management of the crisis has made matters worse. At the elite and societal level, unprecedented dissent and opposition have emerged as a confused regime increases state-sanctioned violence and begins a slow drift toward hard authoritarianism/semi-totalitarianism. However, despite this body blow, we are still a long way from witnessing the demise of the Islamic Republic.