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Regime’s Fear Mounts as Iranian Officials Warn of Economic Collapse and Public Outrage 

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Three-minute read 

As Iran’s regime continues to escalate tensions with the international community, it finds itself besieged by rising domestic discontent. Recent remarks from regime officials highlight their growing concern over the public’s anger, though they consistently deflect responsibility onto external factors or shadowy conspiracies. 

On November 22, Ahmad Alamolhoda, a representative of the regime’s Supreme Leader Ali Khamenei in Mashhad, gave a fiery sermon expressing alarm over the worsening economic crisis. He stated, “The people are facing rampant, uncontrollable inflation in all aspects of their lives. One wonders if this is a conspiracy—are infiltrators working hand in hand to exhaust and alienate the people from the system, the government, and the country?” Alamolhoda’s rhetoric hinted at internal sabotage while deflecting accountability for the crisis. 

In Tehran, Ahmad Khatami, a senior cleric and regime insider, argued that the economic crisis jeopardizes the very foundations of the state. “Inflation has worsened recently, and we raised this issue even during Raisi’s administration. For us, preserving the system is paramount,” Khatami said, emphasizing that the regime’s survival depends on public support. “When people wake up to find prices rising daily for essential goods, it erodes their trust. This must be addressed urgently,” he urged. In an implicit defense of the state, he argued, “The system’s preservation is our priority, so it can’t be responsible for this mess.” 

The regime’s President Masoud Pezeshkian, speaking at a gathering of Basij students and clerics at the mausoleum of Ruhollah Khomeini, offered his solution: fostering a “Basij Spirit” of loyalty and self-sacrifice to uplift the nation.  

Despite holding the highest executive office, Pezeshkian deflected blame, claiming, “After 45 years, it’s unacceptable that our educational system lacks resources. Who is responsible for this growing gap between rich and poor?” His remarks painted a grim picture of the country’s socioeconomic divide but stopped short of offering concrete solutions. 

“We face shortages in everything—electricity, water, gas, environmental resources, and currency. Some of these challenges are on the edge of a precipice,” Pezeshkian said. However, critics, such as former Interior Minister Abdolvahed Mousavi Lari, dismissed this rhetoric, arguing that resolving the country’s deadlock requires securing Supreme Leader Ali Khamenei’s approval to address international sanctions. 

Iran’s deteriorating infrastructure has compounded public frustration. Years of inadequate investment have led to widespread power outages extending beyond the summer months. This winter, electricity cuts are once again widespread. While government officials claim the outages result from efforts to curb mazut (fuel oil) burning to reduce air pollution, evidence suggests that power plants lack sufficient natural gas and liquid fuel to maintain operations. 

The dire economic situation extends beyond energy. Cash subsidies have been delayed due to the government’s inability to secure funds. The Organization for Targeted Subsidies, responsible for these payments, has reportedly been unable to recover its debts from the Oil Ministry, which itself is struggling with declining revenues. Efforts to raise fuel prices, a potential remedy, have been shelved amid warnings from regime-aligned clerics and public backlash. 

Adding to the challenges is the fallout from a recent resolution by the International Atomic Energy Agency (IAEA), which has intensified pressure on the regime. Majidreza Hariri, head of the Iran-China Chamber of Commerce, noted, “The psychological impact of the IAEA resolution exceeds its immediate effects on the currency market. The actual economic consequences of the resolution and subsequent sanctions will become apparent in about six months.” Shafei urged officials to change their tactics to prepare for the challenges ahead. 

Amid these crises, the Iranian rial reached a historic low, with the U.S. dollar exceeding 70,000 tomans in the open market. The depreciation has further exacerbated the economic plight of ordinary Iranians, driving up the prices of basic goods and services. Mustafa Mirsalim, head of the Central Council of the Islamic Coalition Party, attributed the situation to systemic mismanagement and criticized profiteering elites. “The collapse of the rial is not due to poverty or a lack of goods but the failure to protect the currency’s value,” he said, warning against allowing opportunists to exploit sanctions for personal gain. 

Shamseddin Hosseini, head of the parliamentary Economic Commission, described the regime’s predicament as “compounded imbalances,” with governance failures being a primary cause. “Iran’s systemic corruption and fiscal mismanagement have exacerbated sanctions’ impact, crippling infrastructure and amplifying public suffering,” he said. 

While Iran’s officials scramble to deflect blame for the deepening crises, their responses highlight a familiar playbook of hypocrisy and deflection. Yet, this time, the regime’s options are narrowing. The regime faces an unenviable dilemma: either take steps that undermine its core survival mechanisms—such as altering its nuclear, missile, and regional policies, along with addressing systemic corruption and plundering—or persist on its current path, risking an inevitable and catastrophic social explosion. However, history demonstrates that Khamenei cannot afford to alter this path. Until the regime’s last day, it will relentlessly pursue its nuclear ambitions, war-mongering in the region, and brutal suppression within Iran. The only viable solution to these unrelenting crises is the regime’s downfall.