Iran risks sliding deeper into economic and security crises without a fundamental change in its governing approach, a former Revolutionary Guards commander said, adding that he sees no sign the leadership is prepared to make such a shift.
“I have seen no indication that the ruling system wants to change its paradigm,” Alaei said in a video interview with the news site Entekhab, published on Monday. “The current situation shows that previous policies and strategies have not worked.”
Alaei said sanctions had left Iran unable to export freely or access the global banking system, while the domestic economy remained dominated by the state, despite what he described as historical evidence that state-led economic models do not succeed.
“We cannot export normally and we have no access to the world’s banking system,” he said. “At the same time, the economy is still run by the state, even though human experience shows such models fail.”
He said Iran could still pursue a change in direction but argued that parts of the ruling establishment viewed any paradigm shift as a retreat from core values. Others, he added, believed revising failed strategies was itself a way of safeguarding the country’s fundamental principles.
Alaei also warned that the United States and Israel were moving toward what he described as a “Plan B,” centered on intensifying sanctions to worsen economic conditions, trigger unrest and potentially justify military intervention – unless Iran addressed domestic economic mismanagement and recalibrated its foreign policy.
He said a diplomatic opening could still be possible if the United States were to lift all sanctions, even under current political conditions.
In a statement, the ministry said Canada’s move violated international law by branding an official branch of Iran’s armed forces as “terrorist,” and said the new designation was a reciprocal response.
Canada listed the IRGC under its Criminal Code in June 2024, a step Ottawa said was aimed at curbing alleged Iranian influence operations and holding Tehran to account over security and human-rights concerns.
The exchange adds to long-running tensions between the two countries. Canada has imposed multiple rounds of sanctions on Iranian officials in recent years and has cited the IRGC’s role in domestic repression as part of its rationale.
Canada severed diplomatic ties with Iran in 2012 and closed its embassy in Tehran, leaving the two countries without formal diplomatic relations.
“We believe it is necessary to develop a dialogue with Iran,” the Kremlin said, urging parties “to refrain from escalation” after President Donald Trump warned Tehran against rebuilding missile and nuclear capabilities.
Trump, speaking Monday alongside Israel’s Prime Minister Benjamin Netanyahu in Florida, said the US would hit Iran hard if it recovers militarily from the June war and that he would back possible Israeli strikes if Iran continues missile development.
Asked about support for strikes, Trump said: “If they will continue with the missiles, yes… The nuclear… absolutely.”
"I hope Iran is not trying to build up, as I've been reading, that they're building up weapons and other things. And if they are, they're not using the sites that we obliterated, but they're using possibly different sites. We know exactly where they're going, what they're doing, and I hope they're not doing it, because we don't want to waste the fuel on B-2, it's a 37-hour trip both ways. I don't want to waste a lot of fuel," he said.
The United States held five rounds of negotiations with Iran over its nuclear program earlier this year, for which Trump set a 60-day deadline.
When no agreement was reached by the 61st day on June 13, Israel launched a surprise military offensive followed by US strikes on June 22 targeting key nuclear facilities in Isfahan, Natanz and Fordow.
The attacks killed nuclear scientists along with hundreds of military personnel and civilians. Iranian counterattacks killed 32 Israeli civilians and an off-duty soldier.
Iran denies seeking nuclear weapons and says its nuclear program is for peaceful purposes. Supreme Leader Ali Khamenei has said dealing with Trump is beneath the dignity of the Islamic Republic, while Iranian officials have rejected US demands to end uranium enrichment and curb missile capabilities.
