The clerical regime in Iran is witnessing fierce internal clashes as rival factions scramble to assign blame for the country’s deepening economic crisis. The latest rounds of infighting, filled with accusations and exposure of corruption, reveal the regime’s dysfunction and inability to control the deteriorating economic situation.
On February 27, the state-run Asr Iran news site criticized Masoud Pezeshkian, the regime’s president, for his admission that 20 million liters of diesel are smuggled daily. Pezeshkian had posed the question, “Who is behind this large-scale smuggling?” only to receive a sharp rebuke:
“Mr. Pezeshkian! Do not interfere in our work. You are no longer in a position to question; you are in a position to answer! In just 200 days of your presidency, the country has lost at least $4 billion due to diesel smuggling!”
Rival Factions in #Iran Clash Over Economy Minister’s Fate Amid #Economic Collapsehttps://t.co/89D7Sa4O0L
— NCRI-FAC (@iran_policy) February 26, 2025
The statement bluntly called on Pezeshkian to identify and dismantle the smuggling networks rather than merely acknowledge the problem. The harsh response underscores the growing desperation and finger-pointing among regime insiders, each attempting to shift responsibility for the worsening economic collapse.
In another heated exchange, during a February 25 session of the regime’s parliament, MP Hamid Rasaee directly confronted Parliament Speaker Mohammad Bagher Ghalibaf, holding him responsible for the country’s financial collapse. He accused the Supreme Economic Coordination Council—consisting of Ghalibaf, Judiciary Chief Gholam-Hossein Mohseni-Ejei, and Pezeshkian—of making decisions that led to the economic disaster.
“Now the president himself is saying that the current situation is a result of the decisions made by the heads of the three branches—meaning you, Mr. Ghalibaf, along with Mr. Ejei and Mr. Pezeshkian!” Rasaee declared, adding, “If you think the people will simply move on and forget, you are mistaken.”
#Iran's Regime Infighting Escalates Amid #Economic Crisis and International Tensionshttps://t.co/QaeyKbnTc7
— NCRI-FAC (@iran_policy) February 19, 2025
Amid these heated disputes, Gholamreza Tajgardoon, the head of the Budget and Planning Committee, made a shocking revelation on state television, exposing a long-standing currency fraud scheme: “For years, billions of dollars in foreign currency have been funneled into the pockets of a select few due to the exchange rate disparity. Everyone knows this is blatant corruption!”
He further disclosed that despite $18 billion in preferential currency allocations last year, the Iranian people saw no benefit, as goods purchased at these favorable rates never reached the public.
Power Struggles and Deepening Rifts in #Iran’s Leadership Amid Domestic Unrest and Global Pressureshttps://t.co/wCDtPou9iB
— NCRI-FAC (@iran_policy) February 4, 2025
The sheer scale of corruption, along with the regime’s inability to stabilize the economy, has fueled these open power struggles. The infighting highlights how even the most senior officials are desperate to absolve themselves of responsibility as public outrage over economic hardships continues to grow.
With Iran’s national currency collapsing, inflation skyrocketing, and fuel smuggling bleeding the country’s resources, the regime’s factions are increasingly turning on one another. Yet, rather than finding solutions, the ongoing political warfare only underscores the regime’s paralysis in the face of a deepening crisis.