Iranian President Masoud Pezeshkian warns the nation’s economy could collapse within three to four weeks, as disputes escalate with the Revolutionary Guard over regional attacks.
Dispute Between President and Revolutionary Guard
A dispute is unfolding between Iranian President Masoud Pezeshkian and Commander Ahmad Vahidi of the Revolutionary Guard regarding Iranian attacks on regional countries amidst conflict with the US and Israel, according to Iran International.
Pezeshkian criticized the Revolutionary Guard for attacking neighboring countries and escalating regional tensions, warning of long-term consequences for Iran. Sources cited by the Iranian portal indicate the president believes the Iranian economy could completely collapse within three to four weeks without a ceasefire.
Economic Crisis Deepens
The Iranian president has also demanded that the government, not the Guard, make decisions regarding the war. Vahidi rejected this demand, accusing the president of failing to implement structural reforms that, he claims, would resolve many internal systemic problems before the outbreak of war.
Iran International reports that the weakened Iranian economy is heading towards complete collapse after four weeks of conflict. Food prices are rising hourly, with some basic goods increasing in price by at least 50% compared to pre-war levels. A government-imposed internet blockade has paralyzed many services.
Cash Shortages and System Paralysis
Reports from major Iranian cities indicate many ATMs are out of cash or non-functional, and online banking is disrupted in several large banks. A significant portion of public administration employees have not received regular pay since the beginning of the year, according to Iran International.
Widespread Poverty and Regional Conflict
According to data cited by state institutions and some economists, over 40% of the country’s population currently lives below the poverty line. The Middle East conflict began on February 28th with Israeli and US airstrikes on Iran.
Tehran responded with attacks on both Israel and countries in the Persian Gulf region, including US military bases and civilian facilities like airports and petrochemical plants. Iran also blocked the Strait of Hormuz, through which approximately 20% of global oil supplies were transported before the war.