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Iran’s clerical leadership is grappling with deepening economic crises, mounting political rifts, and growing fears of public unrest. On September 9, 2025, the regime’s parliament held a closed-door session with its president Masoud Pezeshkian, his cabinet, and top financial officials to address runaway inflation, widening budget deficits, and worsening living conditions. Instead of solutions, the session exposed a leadership paralyzed by internal divisions and incapable of crisis management.
Parliament’s Closed-Door Session Fails
The two-and-a-half-hour meeting focused on soaring prices, collapsing public services, and the government’s inability to stabilize energy supplies. Despite its urgency, lawmakers emerged frustrated. Mostafa Pordehghan, an MP from Ardakan, dismissed the session as “pointless and empty,” telling Tabnak that it “was not even worth making public.”
He said MPs repeatedly questioned why “so many unaccountable institutions drain the budget,” but Pezeshkian and his ministers “offered no plan, no roadmap, no answers.”
Ali Nikzad, parliament’s deputy speaker, announced after the session that the legislature would suspend operations for 18 days. For a government facing currency collapse and nationwide shortages, the extended recess signals a leadership unable to act.
#Iran's Economic Strain and Unrest Fears Drive Khamenei’s Push for Narrative Controlhttps://t.co/F51d8EVrf4
— NCRI-FAC (@iran_policy) September 8, 2025
A Collapsing Budget
Iran’s fiscal situation has reached a breaking point. Government sources estimate the budget deficit at 800 trillion tomans, while the International Monetary Fund projects it could reach 1.8 quadrillion tomans — an unprecedented shortfall that limits the regime’s ability to fund essential services.
During the session, the head of the Organization of Budget and Planning admitted his inability to enact reforms, saying, “Everywhere we touch, some group screams.” MPs interpreted this as evidence that powerful elite factions are blocking any serious restructuring.
Pordehghan pressed the administration on why, “with all the oil and tax revenue,” the government “still cannot control its expenses.” Lawmakers warned that “if this continues, the country’s situation will become far worse.”
Khamenei’s Weak Position Exposed as #Iran's Rival Factions Escalate Infightinghttps://t.co/Z7U9xguQdl
— NCRI-FAC (@iran_policy) September 4, 2025
Nuclear Brinkmanship and Elite Infighting
Meanwhile, Ahmad Bakhshayesh Ardestani, a member of parliament’s National Security Committee, declared in separate remarks: “We should have built the bomb long ago. We’ve already paid the costs.” His statement underscores growing hardline pressure on the regime to abandon nuclear limits amid rising domestic and international crises.
Following the 12-day war, the regime’s lawmakers have been debating withdrawal from the Nuclear Non-Proliferation Treaty (NPT), framing it as retaliation against European governments following threats of renewed sanctions.
Furthermore, Abbas Araghchi, the regime’s Foreign Minister, became the target of fierce attacks. Multiple MPs accused him of “selling out national interests” and warned he was preparing a “new Turkmenchay” — a reference to the humiliating 1828 treaty with Russia. Hosseinikia, another MP, warned: “The Ministry of Foreign Affairs and Mr. Araghchi should know they cannot hand our national interests to the treacherous Europeans. If he steps beyond his mandate, parliament will impeach him and bring him to trial.”
These clashes coincide with a parliamentary decision to suspend cooperation with the International Atomic Energy Agency (IAEA), accusing Director General Rafael Grossi of “betraying Iran” by “passing classified nuclear data to America and Israel.”
#Khamenei’s Grip on Power Slips Amid Intensifying Factional Warfarehttps://t.co/98hGe6rQfg
— NCRI-FAC (@iran_policy) September 2, 2025
International Isolation Grows
Iran’s economic lifelines continue to shrink under the weight of corruption, mismanagement and diplomatic estrangement. Mohsen Ghomseri, a former senior official at the National Iranian Oil Company, admitted the regime’s exclusion from global markets: “Thirty years ago, everyone wanted to know where Iran’s delegation was seated. Now, we aren’t even invited [to oil summits].”
Ghomseri’s statement underscores Tehran’s dwindling influence in international energy markets. With UN restrictions reimposed and enforcement tightening, Iran faces increasing difficulty accessing buyers and securing financing for oil exports, placing additional strain on a collapsing economy.
#Iran’s Leadership Faces Growing Fears of Unrest Amid Snapback Sanctions and Internal Divisionshttps://t.co/vHMBfE7JON
— NCRI-FAC (@iran_policy) August 30, 2025
Mounting Pressure on Pezeshkian
Masoud Pezeshkian, once installed as a “consensus figure” to manage internal tensions, is now under attack from multiple factions. Some lawmakers have already prepared impeachment motions against the ministers of energy, labor, and housing, accusing them of “incompetence” and “mismanagement.”
In parliament, extremist MPs accused Pezeshkian of pursuing “luxury spending” while ordinary Iranians struggle with soaring food prices and collapsing infrastructure. Abdolreza Mahmoudi, Khamenei’s representative in Shiraz, warned that “multi-voiced divisions” were undermining the regime’s stability: “Every microphone, every platform, and every pen spreading discord must be condemned. Unity is necessary, especially now.”
The remark highlights a growing panic among Khamenei’s inner circle that open dissent within the ruling elite is emboldening broader social opposition.
Senior #Iranian Regime Insider Faces Prosecution After Comments Seen as Undermining Morale Amid Escalating Criseshttps://t.co/jVfljdqUSN
— NCRI-FAC (@iran_policy) August 29, 2025
Fear of Uprising
Behind these battles lies a deeper anxiety: that worsening economic hardship could ignite another wave of nationwide unrest. With rolling blackouts, skyrocketing inflation, unpaid wages, and widespread unemployment, Iran faces social pressures comparable to the 2019 and 2022 protests that shook the regime’s foundations.
The regime’s response has been contradictory — doubling down on security crackdowns while publicly projecting defiance against Western powers. Officials continue to issue threats about uranium enrichment, missile programs, and closing diplomatic channels. But analysts note that this belligerent rhetoric is aimed as much at the regime’s security forces as at foreign audiences, designed to reassure the IRGC and Basij that the leadership is holding firm.
As the economy contracts and political fractures widen, Khamenei’s strategy hinges on controlling the narrative, suppressing dissent, and projecting strength — even as his government struggles to manage basic governance.