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Iran’s “Most Perilous” 20 Years: Cabinet Turmoil Deepens Amid Currency Slide and Smog Crisis

Citizens gather anxiously outside a currency exchange office in Tehran
Citizens gather anxiously outside a currency exchange office in Tehran

Three-minute read

Iran’s clerical regime is showing widening strain as senior insiders warn the country has entered its most perilous period in decades—while the government of Masoud Pezeshkian confronts an escalating impeachment drive, renewed pressure on the central bank, and a cascade of social and environmental crises that officials increasingly acknowledge they cannot contain.

Former vice president Eshaq Jahangiri—long part of the clerical dictatorship’s senior management—offered one of the bluntest official assessments in recent memory. Speaking on December 25, 2025, he said the country’s situation is “critical” and “in at least the last twenty years… more critical and more difficult than all previous periods,” arguing that today’s danger lies in the “multi-dimensional” accumulation of unresolved crises that have become “broader, bigger, and more complex.”

That warning lands as parliament intensifies a pressure campaign against Pezeshkian’s cabinet. Ahmad Naderi, a member of parliament’s presidium, has said impeachment efforts have advanced for at least seven ministers—Labor, Oil, Roads and Urban Development, Energy, Culture and Islamic Guidance, Sports, and Agriculture—with the presidium expected to “determine” the pending cases quickly. In the same remarks, Naderi claimed the number of ministers “in the impeachment line” has risen to nine, with additional efforts reportedly being prepared against the ministers of Industry and of Science.

The impeachment push is unfolding alongside signs of instability at the heart of Iran’s economic management. A report citing claims by Fars News said the government is reviewing the possible replacement of central bank governor Mohammad Reza Farzin and that five candidates have been proposed to Pezeshkian as alternatives. While the report frames the discussion as a response to public economic pressure, it underscores the scale of the currency crisis that has increasingly become the measure of state stability.

Even pro-government commentary has signaled fatigue and paralysis at the top. The state-linked daily Ham-Mihan wrote that Pezeshkian has suffered “job burnout” and sees little hope of exiting the current situation—adding, starkly, that “with a government or without a government, it doesn’t make much difference.” For a sitting president to be described this way in domestic media is itself a marker of how openly political dysfunction is now being discussed.

Financial indicators have added to the atmosphere of emergency. The dollar moved beyond 139,000 tomans in Tehran’s open market—something that reflects both rapid inflation and the public’s flight into hard assets. The same outlet noted that the clerical dictatorship typically responds to sharp currency rises with security measures and intimidation aimed at forcing the market back into line—an approach that highlights political vulnerability as much as economic weakness.

Within the state itself, lawmakers are now openly arguing over where vast pools of export revenue have gone. A letter carried by Tasnim said 165 members of parliament warned the heads of the three branches that exchange-rate policy is deepening inflation and weakening the national currency. The lawmakers also pointed to what they described as a major failure to return export earnings to the official system—an issue echoed in separate reporting that highlights a figure of $117 billion in export currency not returned since 2018.

For ordinary households, the macro-numbers translate into daily erosion of living standards. In one stark domestic benchmark, the state-run ILNA news agency described a reality in which “daily wages have fallen below one dollar,” while staples such as rice become increasingly unattainable for minimum-wage families as prices surge. The result is a widening gap between official assurances and lived experience—an exposure problem the clerical dictatorship has historically tried to manage through censorship and narrative control rather than reform.

The same pattern is visible in environmental and public-health stresses that keep returning as national crises. In Tehran province, official monitoring has repeatedly warned of dangerous air pollution conditions, particularly in the industrial southern belt, threatening children, older adults, and those with respiratory disease. In parallel, a former Tehran municipal official has described the mazut burned in Iran’s power plants as extremely high-sulfur—“100 times” above global standards—and “carcinogenic,” a claim that underscores the public-health cost of energy and infrastructure mismanagement.

Despite that widening hardship, the clerical dictatorship is also channeling resources toward institutions designed to police culture and manage perception. Farhikhtegan has reported notable budget increases for state-aligned “cultural” bodies, including a major rise for the Endowments Organization (Oqaf), alongside increases for other ideological institutions. Taken together with the currency crisis, these allocations feed public anger that repression and propaganda remain protected even as living conditions deteriorate.

Security messaging suggests the state is acutely aware of how economic pain can turn into political ignition. In remarks reported by Mehr and republished elsewhere, Ali-Mohammad Naini, a state official, said the “new war” is being pursued through “black-painting,” “hopelessness,” and “stoking social dissatisfaction,” with the goal of weakening internal cohesion. Whatever the intended target abroad, the rhetoric is also an admission that the leadership sees the decisive threat as domestic: public discontent that can scale from grievance to revolt if the state loses its grip on fear, cash, and cohesion.

Jahangiri’s core point—that accumulated crises have become more complex and harder to manage—now reads less like routine elite commentary and more like a warning flare from within the system. With impeachment campaigns multiplying, central bank leadership under scrutiny, living standards sliding, and environmental hazards intensifying, the clerical dictatorship appears trapped between the costs of reform and the risks of collapse—while ordinary Iranians absorb the consequences in real time.

NCRI
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