Iran’s parliament speaker and chief negotiator in the nuclear talks with the U.S. warned on Friday that his government must find a solution to its economic crisis or face collapse, hinting at the divisions between moderates and hardliners in Iran.
Speaking at Iran’s Embassy in Baghdad, Mohammad Bagher Ghalibaf said Iran’s military strength would not mean much if it is forced into economic destitution by the U.S.’ pressure campaign.
“No matter how much military power we have, if people are hungry and we don’t have financial circulation, economic growth and domestic production, we will not endure,” he said. “If we establish security but do not sustain it through the economy, it will not last.”
Mr. Ghalibaf’s comments come as Iran continues to suffer under the weight of a U.S. naval blockade and increasingly harsh sanctions, aimed at economically isolating the Islamic regime.
President Trump and Treasury Secretary Scott Bessent this week teased an upcoming round of sanctions dubbed “economic D-Day.” The new restrictions, which are set to be announced early next week, are likely to stand in for further military action by the U.S., Mr. Bessent said.
The blockade has reportedly had a massive impact on Iran’s oil economy, which has long stood as its economic lifeline even during periods of intense strain. Crude oil production in the country has fallen dramatically in recent months, now standing barely above what is needed for domestic needs, according to oil-tracking firm Tanker Trackers.
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The blockade has also impeded Iran’s ability to sell oil to China, which traditionally purchases more than 90% of Tehran’s crude exports.
Other Iranian officials, including Mr. Ghalibaf’s diplomatic partner in negotiations with the U.S, Foreign Minister Abbas Araghchi, have downplayed the incoming sanctions as more of the same.
Mr. Araghchi wrote on X, “14 years ago: ’Most crippling sanctions in history.’ Failed. 8 years ago: ’Maximum pressure.’ Failed. 5 months ago: ’Unconditional surrender.’ Failed. Today: ’Most crushing economic operation ever.’ Bound to fail.”
His post was accompanied by a screenshot of a 2012 tweet from former President Barack Obama that indicated recent sanctions from his administration were “the most crippling sanctions in the history of sanctions.”
Iran has endured decades of intense economic restrictions from the U.S. and other Western nations seeking to curb Tehran’s oil profits and weaken its terror proxies in the region.
Iran’s economy has been saved, in part, by its effort to build extensive smuggling networks for its shadow fleet, facilitating the shipment of millions of barrels of oil to China each year.
It has also greatly improved its security position over the years by building its relationships with U.S. rivals such as Russia, North Korea, Belarus and China.
Some reports have suggested that the economic turmoil caused by the pressure campaign will force Iran to respond militarily, targeting U.S. bases in the region and beyond.
The Chief of Staff of Iran’s armed forces, Ali Abdollahi, warned Friday that Iran was prepared to deliver a “devastating” response to threats to collapse the country’s economy.
“Any miscalculation and conventional or emerging threats by the enemies will be met with revolutionary, crushing, regret-inducing and devastating responses,” he said at an event with Iranian defense industry leaders.
Indeed, while Mr. Ghalibaf pressed for diplomatic considerations in his comments on Friday, he insisted that Iran must be ready for war.
“Diplomacy has value and moves forward when we are prepared for war. If we are not prepared for war, no one will respond to us when we use diplomacy,” he said.
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