Iran faces mounting economic crisis amid rare warnings at Tehran meeting

The resignation of Iranian Oil Minister Mohsen Bak Najad has revealed the mounting pressure facing the government amid the ongoing conflict between Iran and the United States, now in its seventh month, and its heavy toll on the Iranian economy.

The resignation coincided with rare warnings issued by Iran’s National Security Adviser Mohsen Rezaei during a high-level government meeting held last Saturday in Tehran, attended by President Masoud Bezhikian and several senior ministers, according to The New York Times.

Despite the significance of these warnings, most Iranian state media avoided publishing details, with the exception of IRNA, which quoted Rezaei as describing the current situation as “among the most difficult periods the country has faced.”

‘New approach’ to tackle the crisis

On the same day, Bezhikian acknowledged the worsening economic situation in a social media post, but said his government had adopted a “new approach to managing these exceptional circumstances,” without disclosing details or specific measures planned to address the crisis.

These developments come amid a sharp decline in the value of the Iranian rial, which has accelerated in recent weeks since the outbreak of the conflict on February 28, alongside tighter US sanctions and the ongoing maritime blockade of Iranian ports.

The currency’s fall and rising import costs have deepened Iran’s years-long cost-of-living crisis, which helped spark widespread protests last December before security forces intervened to suppress them.

Analysts say the US maritime blockade has significantly reduced Iran’s ability to export oil—the state’s main source of revenue—further worsening the domestic fuel crisis.

The impact of US measures has not been limited to the oil sector; Washington has also imposed restrictions on most civilian flights between Iran and the rest of the world, increasing the isolation of Iran’s economy.

Protests over falling incomes

In another sign of mounting economic pressure, employees in both the public and private sectors—including nurses and teachers—have recently quit their jobs, saying their salaries are no longer sufficient to cover living expenses.

Local media also reported that retired government workers have staged protests in recent weeks, objecting to not receiving their full pension entitlements.

Stalled negotiations add to pressure

These developments come as pressure on Tehran mounts due to stalled negotiations with Washington, with both sides sticking to their positions and refusing to make concessions.

In recent weeks, US officials have said their country is making progress in its economic confrontation with Iran, as the Iranian government faces simultaneous pressures on its currency, oil revenues, and living standards.