Significant disagreements have emerged within Iran’s leadership over the handling of the war and its growing economic toll, Iran International reported, citing sources familiar with the discussions.
According to the report, Iran’s president, Masoud Pezeshkian, has criticized the Islamic Revolutionary Guard Corps’ approach to escalating tensions and continuing attacks across the region, warning of severe economic consequences.
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Iranian President Masoud Pezeshkian
(Photo: Majid Asgaripour/WANA (West Asia News Agency) via REUTERS)
The sources, who spoke on condition of anonymity, said Pezeshkian warned that without a ceasefire, Iran’s economy could collapse within weeks.
In a video message on March 7, Pezeshkian apologized for what he described as “fire at will” attacks by Iran’s armed forces on neighboring countries and instructed that such operations stop. The report said the attacks continued shortly afterward.
The disagreements have also extended to internal authority, with Pezeshkian calling for executive powers to be returned to the civilian administration, a demand rejected by IRGC chief Ahmad Vahidi, according to Iran International.
In response, Vahidi blamed the situation on the government’s failure to implement structural reforms before the war began, the report said.
The war’s economic impact inside Iran has become increasingly visible as it enters its fifth week. Iran International reported widespread disruptions to banking services, with ATMs in major cities either out of cash, not functioning or inaccessible. Online services at several major banks, including Bank Melli, have also faced intermittent outages.
Government employees told the outlet that salaries and benefits for many workers have not been paid regularly in recent months.
Even before the war, inflation for basic goods had surged to between 105% and 115% in February, underscoring the strain on the economy.