The impeachment of Abdolnaser Hemmati, Iran’s economy and finance minister, by the hardline-dominated parliament marks a significant blow to President Masoud Pezeshkian's reformist government. This action underscores the deepening economic crisis in Iran, exacerbated by US sanctions. Lawmakers accused Hemmati of worsening economic conditions, citing a 60% depreciation of the national currency and soaring prices for essential goods. The vote saw 182 lawmakers favoring impeachment, with only 89 opposing it. President Pezeshkian argued that Iran faces a crisis more severe than the Iran-Iraq war, urging unity against what he termed an "all-out war" with the US. However, his pleas fell on deaf ears as the hardliners pressed forward with their agenda.

Political Struggles Amidst Economic Hardship

The removal of Hemmati highlights the intense political struggles within Iran's government. President Pezeshkian attempted to defend his minister, emphasizing the dire economic situation caused by external pressures. He likened the current crisis to a comprehensive conflict, more challenging than the historical Iran-Iraq war. Despite this, the hardline elements within the parliament insisted on holding Hemmati accountable for the economic downturn since his appointment. They pointed to the significant devaluation of the rial and the skyrocketing costs of basic necessities as evidence of his failure.

Hemmati's defense focused on pre-existing structural issues within Iran's economy, including widespread corruption and rising poverty. He highlighted that nearly 10 million Iranians had fallen below the poverty line over the past seven years. Additionally, he noted the substantial smuggling activities, estimated at $30 billion annually, driven by economic favoritism and political connections. Hemmati also addressed critical problems in the banking and energy sectors, arguing that these factors contributed significantly to the economic turmoil. His stance was that about 80% of the population was suffering due to smugglers, sanctions profiteers, and those with special privileges, all tied to international developments.

Impact of US Sanctions on Iran's Economy

The impeachment comes at a time when Iran is grappling with renewed pressure from the United States. The Trump administration's "maximum pressure" campaign has reimposed sweeping sanctions on Iran, severely impacting its ability to sell oil and stabilize its economy. Pezeshkian acknowledged the challenges posed by these sanctions, noting that oil tankers were struggling to offload shipments. Elected on a platform promising relief from sanctions, Pezeshkian initially suggested that economic recovery depended on negotiations with Washington. However, hopes for renewed talks have faded following recent executive orders expanding US sanctions.

Pezeshkian's approach to handling the crisis has been marked by a delicate balance between advocating for dialogue and adhering to the supreme leader's stance. While his senior diplomats expressed willingness to discuss Iran's nuclear program, the hardliners argue that Washington aims to strip Iran of its strategic capabilities entirely. In response to the supreme leader's ruling out of negotiations, Pezeshkian reaffirmed his loyalty, stating that discussions with the US would not occur. Some lawmakers accused Hemmati of supporting negotiations with Washington, which he vehemently denied. Instead, he emphasized the need to address long-standing domestic issues rather than attributing all economic woes to sanctions alone.