Unlock Editor’s Digest Lock for Free
FT editor Roula Khalaf will select your favorite stories in this weekly newsletter.
The Iranian hardlin-controlled parliament has fired and fired the economy, with Finance Minister Abdulnaser Hemati bringing a major setback to President Masuud Pezeshkian’s reformist government.
The move underscores tensions about how Pezeshkian will deal with the Iranian crisis.
A lawmaker who voted to eliminate hemmati accused the economic situation of worsening since taking office last August. They pointed to a 60% depreciation of RIAL, the domestic currency against the US dollar in the open market during his tenure, along with rising prices for important goods, including food and medicine.
Of the 273 lawmakers attending Sunday’s session, 182 voted in favor of the bluff each, 89 opposed, one abstained, and one vote was declared invalid.
Pezeshkian defended the pastor and urged Congress not to dismiss key members of the government, claiming that he faced a crisis that was even more severe than the Iran-Iraq war of the 1980s.
“We are in full war with our enemies [the US]. There was no war with Iraq [in comparison]Pezeschkian told lawmakers. “The enemy wants to show us a division. How can we bring about major economic change in just six months?”
The bluff comes amid the updated “maximum pressure” campaign by Donald Trump’s US administration, which reimposed sweeping sanctions on Iran, similar to the measures he introduced during his first term in 2018.
Pezeshkian acknowledged that Iran is already struggling to sell oil due to its latest sanctions, and that oil tankers are selling cargoes that they “struggle to unload.”
Pezeschkian, who was elected last July on a platform that promised to seek sanctions relief, suggested that the economic recovery was dependent on negotiations with Washington.
Senior diplomats at Pezeschkian had expressed an eagerness to discuss the country’s nuclear program, but hopes for a new meeting have become bleak. Trump’s recent executive order has expanded US sanctions, citing concerns about Iran’s nuclear activities as well as ballistic missile programs and regional policies.
Tehran hardliners argue that Washington is now trying to completely strip Iran of its strategic capabilities, rather than negotiating a limited nuclear deal like the 2015 deal that Trump later abandoned.
On Sunday, Pezeshkian acknowledged that he supported the idea of ​​consultations with the US as a “better” option, but reaffirmed his loyalty to Supreme Leader Ayatollah Ali Khamenei, who ruled out negotiations shortly after Trump announced his approach.
“When the Supreme Leader said he wouldn’t negotiate with the US, I [abided by it and] It has announced that it will not negotiate with the US. That’s the end of the story,” Pezeschkian said in what appears to be an attempt to appease his conservative critics.
During the debate, some lawmakers accused Hemati of insisting on negotiations with Washington, and accused him of denying and blaming all Iran’s economic issues regarding sanctions.
In his defense, Hemati pointed to deep structural issues within the country before his tenure, including increased poverty and widespread corruption.
He said 100 million Iranians have fallen below the poverty line in the past seven years, and $300 billion worth of goods are smuggled annually due to economic support and political ties. He also highlighted the acute issues in the banking and energy sectors.
“Around 80% of people are crushed by smugglers, sanctions interests and people with special privileges,” Hemmati said. “Budget deficit… It’s linked to international development.”