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Internal Tensions and Economic Crisis in Iran amid Feud over High-Profile Appointments

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In a surprising move that will most likely sting members of the faction associated with the regime’s Supreme Leader Ali Khamenei, the new president Masoud Pezeshkian has appointed Mohammad-Javad Zarif as his strategic deputy. This move is seen as a slap in the face of many who had warned Pezeshkian to fall in line with his predecessor, Ebrahim Raisi.

As the regional conflict casts a high shadow on these developments in Tehran, the political landscape remains fraught with tension. Aladdin Boroujerdi, a member of the National Security Commission, emphasized the importance of consulting with Khamenei for key ministerial appointments, including the Ministries of Foreign Affairs, Interior, Intelligence, and Defense. “We are certain that these responsibilities will not be delegated without Khamenei’s consultation,” Boroujerdi warned.

Meanwhile, Ahmad Rastineh, another parliament member, warned Pezeshkian against nominating individuals from other factions for ministerial positions. He stated, “The president should not introduce individuals whose track records show their reliance on global hegemonic powers,” urging adherence to Khamenei’s criteria to expedite the formation of the new government.

“It was expected that Pezeshkian would appoint a dynamic and energetic Vice President from among those aligned with him to fulfill his promises,” Hamid Rasaee, an influential member of the regime’s parliament and a figure close to Khamenei, wrote on X. “The choice of Mohammadreza Aref, who is three years older than Pezeshkian, sends a negative message.”

These developments unfold against a backdrop of media censorship and political rivalry, particularly following the inauguration ceremony, which was staged to project a sense of “unity.”

The Jam-e-Jam website faced a major backlash after it edited out Parliament Speaker Mohammad-Bagher Ghalibaf from the inauguration photo alongside Khamenei and Pezeshkian.

Abbas Abdi, a former interrogator turned media activist, criticized the manipulation of media images, citing this move as indicative of deeper systemic issues. “Such blatant censorship suggests that all their news undergoes severe filtering. Without reforming the official media system, no positive and lasting change can occur,” Abdi warned.

Jalil Mohebbi, a figure close to Ghalibaf, also described the move as trivial, writing, “The only way you could possibly remove us is with Photoshop!”

Majid Rafiee, a long-time media activist within the regime, also commented on X, “Of course, the main issue with this faction is rationality! Whether it’s physical removal or Photoshop…”

The state-run newspaper Jomhouri Eslami also wrote, “Although Raisi’s photo was prominently displayed next to Pezeshkian’s podium, none of his family members were present at the event. Despite the presence of several Friday prayer leaders from provincial centers, there was no sign of Ahmad Alamolhoda.”

Further complicating the internal strife, Iran’s oil exports have plummeted under severe sanctions. China, the main purchaser of Iranian oil, has stopped currency payments for oil imports, citing Iran’s non-compliance with FATF regulations. This has exacerbated the government’s inability to import essential goods and raw materials, as acknowledged by Hossein Selahvarzi, a member of the regime’s Chamber of Commerce.

Mortaza Afqah, an economist, painted a bleak picture of the new government’s prospects. “There is no saddled horse, only a crippled one,” he said, referring to the empty state coffers and the systemic deadlock. Afqah emphasized that without resolving the sanctions issue, the situation would remain dire, with little left in the National Development Fund.

The state-run website Asr Iran wrote, “The treasury that President Raisi is handing over to Pezeshkian will barely cover two- or three-day worth of government employee salaries. So, where is all the money from the oil you sold?”

Zahra Saeedi, spokesperson for the parliamentary Industries Committee, said, “In the recent meeting between the Leader and the representatives, he emphasized the importance of maintaining calm. Economic and livelihood issues should not be used as an excuse for unrest in society because people are fed up with discrimination.”

“Opponents of Iran joining the FATF are the same people who have profited enormously from the lack of financial transparency due to sanctions,” remarked Mohammad Mohajeri, a member of the board of directors of Khabar Online, on July 29.