Channel 14 reported a tense call where President Masoud Pezeshkian urged joining U.S. negotiations to save Iran’s crumbling economy, but IRGC head Ahmad Vahidi refused, saying he’d give everything away.
Pezeshkian later told aides he felt like a hostage, unable to act independently amid hardliner control. This comes during Iran’s fifth week of war with Israel and the U.S., triggered by strikes killing Supreme Leader Khamenei, with the rial crashing and basics hit by hyperinflation.
Serious disagreements have emerged between Iran’s President Masoud Pezeshkian and IRGC chief-commander Ahmad Vahidi over how to manage the war and its damaging impact on people’s livelihoods and the economy, reports Iran International.
Pezeshkian has criticized the approach of the Islamic Revolutionary Guard Corps regarding escalating tensions and continuing attacks on neighboring countries, warning about the economic consequences of the situation, according to the sources who spoke on condition of anonymity.
He has stressed that without a ceasefire, Iran’s economy could face total collapse within three weeks to one month, the sources said.
On March 7, Pezeshkian in a video message apologized for what he called “fire at will” attacks by the country’s armed forces on neighboring countries and instructed them to stop such attacks.
However, the attacks continued shortly after the release of his message.
Call for restoration of executive power
Informed sources told Iran International that Pezeshkian has called for executive and managerial powers to be returned to the administration, a demand that has been firmly rejected by Vahidi.
In response to the criticism, the IRGC commander blamed the current situation on the government’s failure to implement structural reforms before the conflict began, the sources said.
In recent days, Israeli media have also reported signs of divisions within Iran’s ruling system. The Times of Israel, citing a senior Israeli official, wrote: “There are signs of cracks in the Iranian regime. We are now creating conditions for its overthrow, but ultimately everything depends on the Iranian people.”
The Israeli outlet Ynet also reported similar internal divisions earlier this month.
Economic impacts
As the war enters its fifth week, its economic effects are increasingly visible. Reports from major cities indicate that many ATMs are out of cash, not functioning, or physically inaccessible, while online banking services for several major banks, including Bank Melli, are periodically disrupted.
Government employees have told Iran International that salaries and benefits for large segments of workers have not been paid regularly over the past three months.
In February, before the outbreak of the ongoing war, average inflation for basic necessities reached triple digits, estimated between 105% and 115%.
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