Iranian President Threatens Resignation to Pressure Supreme Leader on Economic Crisis

Iranian President Masoud Pezeshkian has threatened to resign in an unprecedented move aimed at forcing a meeting with Supreme Leader Mojtaba Khamenei, according to the Wall Street Journal citing sources involved in mediation between Iran and the United States. The president’s demand reflects the worsening economic crisis in Iran, which he wants to urgently present to Khamenei, emphasizing the need for a swift agreement that would bring tangible economic relief.

This internal tension highlights the divisions within Iran’s leadership, with mediators describing a split between factions seeking a deal with Washington and hardliners opposing it. Even officials who support an agreement struggle to advance their position against the Supreme Leader’s authority. Iranian negotiators have conveyed to mediators that any deal must provide significant economic benefits to gain support in Tehran, beyond merely halting hostilities or regulating shipping in the Gulf.

Meanwhile, the Islamic Revolutionary Guard Corps (IRGC) continues to threaten retaliatory attacks, signaling that failure to secure meaningful economic gains could lead to renewed and expanded assaults on ships and tankers in the region. This combination of domestic economic pressure and military threats has expanded the scope of negotiations. Talks initially focused on limited arrangements to resume traffic through the Strait of Hormuz but now include potential sanctions exemptions, resumption of oil exports, and release of frozen Iranian assets. These issues had been part of prior understandings between Washington and Tehran but were stalled due to recent conflicts and hostilities.