Iran is facing a severe economic crisis, with its top security official acknowledging the country is experiencing one of the most challenging periods in its history. Mohsen Rezaei, Iran’s national security adviser, made the statement on Saturday during a high-level government meeting focused on efforts to stabilize the economy following more than seven months of ongoing conflict.
The Iranian rial has rapidly depreciated since the conflict between Iran, the United States, and Israel escalated in February. In recent weeks, the decline accelerated amid intensified U.S. sanctions and the enforcement of a naval blockade, which has restricted imports and exacerbated a persistent cost of living crisis. This economic strain previously sparked nationwide protests in December, which were met with a violent crackdown by security forces.
The blockade has also hindered Iran's ability to export oil, the country's primary source of revenue, further intensifying a domestic fuel shortage. Mohsen Paknejad, Iran’s oil minister who had previously vowed to continue oil exports despite sanctions, resigned on Sunday. Seyed Mehdi Tabatabaei, a spokesman for President Masoud Pezeshkian, announced that Hamid Bovard, managing director of the national oil company, would serve as Paknejad's interim replacement.
Economic hardships have also affected government and private sector employees, some of whom, including nurses and teachers, have publicly stated their intent to resign, citing insufficient salaries. Reports from local media indicate protests by retired government workers demanding full pension payments.
The meeting on Saturday included President Pezeshkian and other senior ministers. Although direct quotes from Rezaei were not published by Iranian state media, the official news agency IRNA reported that Rezaei described the situation as among the most difficult the country has faced and said that Iran’s security council would extend all necessary support.
President Pezeshkian acknowledged the deteriorating economic conditions on social media, noting that the government has adopted a “new posture to manage the special conditions,” though he did not provide further details.
The economic pressures on Iran coincide with stalled negotiations between Tehran and Washington. U.S. officials have recently claimed progress in the standoff, citing data showing oil shipments from the Middle East nearly returning to prewar levels. However, global oil prices remain elevated, and analysts warn that the crisis continues to pose risks to the global economy. The Strait of Hormuz remains perilous for navigation, and damage to regional energy infrastructure has reduced refining capacity and natural gas exports. Some analysts suggest Iranian leaders hope the economic pressures may influence the forthcoming U.S. midterm elections.