Iranian president slams parliament amid economic crisis
In a rare outburst, Iranian President Masoud Pezeshkian has lambasted Iran's parliament for its role in Iran's economic crisis.
In a rare outburst, Iranian President Masoud Pezeshkian has lambasted Iran's parliament for its role in Iran's economic crisis.
In a speech on Sunday during National Exports Day, Pezeshkian criticized the commitments imposed by parliament, arguing that they have placed excessive burdens on the state and contributed to the country's economic challenges.
"The commitments that the parliament has imposed on governments do not align with reality," Pezeshkian said, adding, "On one hand, they have created a debt-ridden government with imbalances in banks and funds, and then they say, 'Solve it.'"
His remarks come as Iran continues to grapple with the economic consequences of US oil export and banking sanctions, which have driven the country into a financial downturn.
"We are at war—a war that these dishonorable people [the West] have imposed on us, worsening the situation day by day. Today, it's not a missile war, but a war of ideas and production," he stated, in what appeared as a political jab against hardliners, who have the majority at the parliament.
Amid such admissions, criticism of the government’s handling of the economic crisis has intensified, particularly from the media affiliated with Iran's Islamic Revolutionary Guard Corps (IRGC). One of the primary targets of this criticism is Abdolnaser Hemmati, Iran’s Minister of Finance, who has come under fire for mentioning sanctions as the greatest economic issue for the country.
In a report by the IRGC-affiliated Tasnim news website, Hemmati was described as the wrong choice for minister of economy. The report accused him of acknowledging the effects of Western sanctions, which the agency claims reveals Tehran's empty hands to its adversaries.
Hemmati, who recently tweeted that “implementing economic reforms and efforts to reduce sanctions is the key to solving the country’s problems,” was further lambasted by Tasnim.
"Mr. Hemmati, who apparently knows more about media than economics, last night posted a tweet that seemed more like a dangerous signal and message of weakness to the enemy, emphasizing his inability to solve economic problems without lifting the sanctions. It appears that he has mistakenly occupied the position of minister of economy,” Tasnim wrote.
Iran’s economy has been impacted by US-led sanctions, which have crippled its oil revenues, devalued the rial, and driven annual inflation to above 40%. The national currency reached a near-historic low on Sunday, with the US dollar trading at 646,000 rials, marking an increase of close to 10% since August.
The stock market, too, reflected the broader economic instability, with Tehran’s exchange losing approximately 19,000 units on Sunday, on top of 24,000 on Saturday, standing at nearly 2 million points.
As the country’s financial situation worsens, fears of a regional conflict with Israel have prompted Iranians to safeguard their wealth by converting assets into more stable investments like gold. The price of gold coins has surged, with values reaching nearly 560 million rials—an increase of 22 million rials in just one day.
Reza Gheibi, an economic expert, told Iran International that the shift to gold and foreign currency is a direct result of public fears over the future of the Iranian economy. "Iran’s relentless regional aggression and its deeply ingrained ideological perspectives will prevent the country from finding a way out of this crisis," Gheibi said.
Meanwhile, Arash Azarmi, an economic journalist, predicted that as the economic crisis deepens, internal tensions between Pezeshkian and the hardline opposition aligned with Supreme Leader Ali Khamenei will become more pronounced.
In an interview with Iran International, Azarmi also noted that any economic reforms are unlikely to succeed under US sanctions. "As long as these sanctions are in place, Iran’s trade is illegal and unofficial. BRICS and Shanghai Cooperation Organization cannot offer a solution," he remarked.
As economic tensions rise and Iran remains isolated from the global market, the country’s leadership continues to face growing pressure with critics both inside and outside the government voicing their frustrations.
The comments came during an interview with Turkey's NTV network on Friday, at a regional meeting in Istanbul.
Araghchi emphasized that any attack on Iran, particularly its nuclear facilities, would be seen as crossing a red line and would provoke a significant response.
"Any attack on Iran will be considered crossing a red line for us. Such an attack will not go unanswered. The necessary response will be given to any attack on Iran's nuclear facilities or any similar attack," Araghchi stated.
This latest rhetoric from Tehran comes amid escalating tensions between Israel and Hezbollah, Iran’s regional ally. On Saturday, a drone launched from Lebanon struck the seaside residence of Israeli Prime Minister Benjamin Netanyahu in Caesarea, an affluent town known for its luxury villas. Although Netanyahu and his wife were not present during the attack, the Israeli Defense Forces (IDF) confirmed that the drone, fired by Hezbollah, damaged a building in the area.
Netanyahu responded swiftly to the strike, accusing Iran and its proxies of being behind the attack and vowing retaliation.
"The attempt by Iran’s proxy Hezbollah to assassinate me and my wife today was a grave mistake," the Israeli leader wrote on social media platform X. "This will not deter me or the State of Israel from continuing our just war against our enemies."
In his remarks, Araghchi underscored Iran’s position on what it sees as Israeli and American aggression in the region. He pointed to the ongoing conflicts in Gaza and Lebanon, stating that Israel could not act in these areas without support from the United States.
"Israel cannot commit crimes in Gaza and Lebanon without the US. All the weapons used there are supplied by the US" Araghchi said during the interview.
The foreign minister added that Iran had not attacked Israeli civilian or economic targets, it had focused solely on military sites. He suggested that Tehran might not continue this approach if provoked. "We have not attacked the economic or civilian facilities... we have only targeted military facilities. Now we have identified all our targets there, and a similar attack on their targets will be carried out," Araghchi warned.
Israeli Prime Minister Netanyahu, meanwhile, has vowed that “anyone who tries to harm Israel’s citizens will pay a heavy price. We will continue to eliminate the terrorists and those who dispatch them,”
Iran’s Foreign Ministry Spokesman Esmail Baghaei denied Iran’s role in launching attack on Netanyahu’s residence accusing Israel of being built on lies.
“The Zionist regime has been formed on the basis of lies and distortion of facts. Spreading lies is the current and permanent practice of this regime and its criminal leaders”, the spokesman said.
Araghchi, participating in Friday's meeting of South Caucasus nations in Istanbul after a regional tour which took him to Jordan and Egypt, described the growing tensions in Lebanon as very worrying.
"The possibility of war in the region is always serious, and no one other than the Zionist regime wants that to happen. We want to reduce tensions, but we are ready for any scenario," he said.
These developments come at a time of heightened instability in the Middle East, with Israel facing threats from multiple fronts, including Hezbollah in Lebanon and Hamas in Gaza, both backed by Iran.
The drone, fired from Lebanon by Hezbollah, struck Netanyahu’s seaside residence, though the prime minister and his wife were not present. The Israeli Defense Forces (IDF) confirmed that a building was hit in Caesarea, an affluent town known for its luxury villas and ancient Roman ruins. Netanyahu’s office released a brief statement acknowledging the attack, followed by the prime minister’s vow of response.
"The attempt by Iran’s proxy Hezbollah to assassinate me and my wife today was a grave mistake," the Israeli premier wrote on X. "This will not deter me or the State of Israel from continuing our just war against our enemies in order to secure our future."
“Anyone who tries to harm Israel’s citizens will pay a heavy price. We will continue to eliminate the terrorists and those who dispatch them,” added Netanyahu.
Israel’s Foreign Minister Israel Katz echoed the prime minister's stance, stating that the attack "exposed Iran’s true face and the evil axis it leads." Katz added that Israel’s enemies "will pay a heavy price for any attempt to harm our citizens, soldiers, and leaders."
Houshang Hassan-Yari, a military expert, in an interview with Iran International, emphasized the gravity of the situation, noting that the IRGC (Islamic Revolutionary Guard Corps) has reached a point where it can launch such an attack. "The level of tension is rising," Hassan-Yari said, suggesting that this operation marks a shift in the IRGC's willingness to act directly. He indicated that the attack could lead to a broader conflict in the region.
It is not clear why Israel's sophisticated air defense system was not able to identify and shoot down a drone that flies relatively slowly.
“While this attack opens the path for a strike against Khamenei, the US can no longer prevent such actions to avoid escalation. Furthermore, no regional country would criticize such a strike. The involvement of the IRGC in Hezbollah’s activities has drawn attention to the possibility of a direct strike on Iranian officials,” added Hassan-Yari.
Mohsen Sazegara, a journalist and political analyst, also told Iran International that Saturday’s attack was carried out by the IRGC, which has assumed control of Hezbollah's operations following the assassination of its leader, Hassan Nasrallah. Sazegara suggested that the IRGC now has a direct intent to assassinate Netanyahu.
'Red lines crossed, Iran's regime closer to end'
Miki Zohar, Israeli Culture Minister, also said in a tweet in Farsi: "The Iranian attempt to assassinate the Israeli Prime Minister, even for a terrorist monster like Iran, whose hands are stained with the blood of thousands, is considered crossing a red line. The price Iran will pay will be deeply engraved in the history books. The end of Iran’s oppressive regime is closer than ever."
A spokesman for Iran’s mission at the United Nations in New York told the Wall Street Journal that the “action in question has been carried out by Hezbollah in Lebanon."
However, Middle East expert Menashe Amir believes that Iran may be trying to avoid further escalation. "Netanyahu’s remarks legitimize the targeting of Iranian officials," Amir told Iran International, adding that it remains unclear whether the focus would be on Supreme Leader Ali Khamenei, his son Mojtaba, or other key figures. Amir also noted that the attack on Netanyahu's villa could accelerate Israel's retaliatory plans, potentially leading to action before the upcoming US elections.
Amichai Stein, a correspondent for Israel’s public broadcasting corporation, reported that Israeli sources close to the prime minister have indicated a response is forthcoming, holding Iran responsible for orchestrating the attack through Hezbollah. Stein tweeted, "There will be a response to the drone attack against the Prime Minister's residence, and Iran, as the one behind Hezbollah, is also responsible."
This incident adds another layer of complexity to an already volatile regional situation, with Iran’s backing of Hezbollah now more clearly in the spotlight. As Israel prepares its response to Iran's October 1 missile barrage, the potential for further escalation remains high.