Iran’s Regime Fractures: President Clashes With IRGC as Economy Teeters on Collapse
Serious rifts between President Masoud Pezeshkian and hardline Revolutionary Guard commanders are spilling into public view — amid desperate warnings of economic ruin and a power struggle over who controls Iran’s war.
- President Pezeshkian has reportedly warned senior officials that without a ceasefire, Iran’s economy could collapse within three to four weeks.
- IRGC chief Ahmad Vahidi has rejected the president’s demand to return executive powers to the civilian government.
- Pezeshkian issued a rare public apology on March 7 for “fire at will” attacks on neighboring countries — despite some strikes reportedly continuing afterward.
- ATMs in major Iranian cities have been reported empty or offline; state bank systems facing outages.
- Government salaries have been paid irregularly, with some delays of up to three months.
- Inflation on basic goods reportedly exceeded 100 percent even before the current conflict began.
Tensions are reportedly rising within Iran’s leadership as President Masoud Pezeshkian clashes with senior figures in the powerful Islamic Revolutionary Guard Corps (IRGC) over military operations and the country’s worsening economic crisis.
Sources cited by the opposition-leaning broadcaster Iran International say Pezeshkian has sharply criticized the military strategy pursued by IRGC commanders, including senior figure Ahmad Vahidi. The president reportedly warned that continued attacks across the region risk further destabilizing Iran’s already fragile economy, which remains under pressure from sanctions and internal challenges.
The reported disagreements suggest growing friction between Iran’s elected leadership and the IRGC — a dominant force that wields significant influence over regional operations and internal security policy, and which analysts have long described as a state within a state.
Economic Warnings & Military Tensions
Sources familiar with the discussions said Pezeshkian warned that without a ceasefire, Iran’s economy could deteriorate rapidly — potentially within weeks. The warning echoes a broader pattern of alarm from the elected government over the human cost of a conflict it appears to have limited authority over.
Without a ceasefire, Iran’s economy faces total collapse within three to four weeks.
— President Pezeshkian, per sources cited by Iran InternationalIn a rare video message on March 7, the president appeared to acknowledge what he described as “fire at will” attacks by Iran’s armed forces on neighboring countries, for which he publicly apologized while calling for an immediate halt. However, military operations reportedly continued shortly afterward — raising serious questions about the civilian leadership’s actual authority over Iran’s security apparatus.
The reported developments underscore broader tensions within Iran’s power structure, where authority over military and foreign policy has long been contested between elected officials and the unelected revolutionary institutions that Khamenei long used to govern in parallel.
Power Struggle Within Iran’s System
Pezeshkian has reportedly called for executive control over policy and implementation to return to the civilian administration, but that demand was rejected by IRGC leaders, including Vahidi, according to sources familiar with the situation. Vahidi instead blamed the government “for failing to implement structural reforms” before the U.S.-Israeli strikes against Iran began.
Analysts say the situation — if confirmed — underscores longstanding concerns that Iran’s elected officials have limited authority over the IRGC. Reports also suggest IRGC efforts to consolidate control further, including pressure over key appointments such as Mohammad Bagher Zolghadr as Secretary of the Supreme National Security Council.
The reported infighting comes at a time of mounting public discontent with Iran’s rulers, following a deadly crackdown on anti-government protests earlier this year in which thousands were reported killed, according to activists and human rights groups.
Economic Crisis Deepens Across Iran
As the conflict escalates, its economic impact is increasingly visible on the streets of Iran. Iran International reported widespread disruptions to banking services, with cash machines in major cities either empty, out of service, or inaccessible. Online systems at state-run Bank Melli Iran have also faced intermittent outages, deepening uncertainty for millions of households.
Government employees told the outlet that salaries and benefits have been paid irregularly in recent months — with some delays stretching to three months — adding to financial uncertainty for many families already struggling under wartime conditions.
Even before the conflict began, inflation for basic goods had surged to more than 100 percent, highlighting the severe and pre-existing strain on the country’s economy. Analysts warn that any confirmed divisions within Iran’s leadership could deepen the economic crisis, complicate decision-making, and potentially further destabilize the region.
Timeline of Escalating Tensions
The situation remains fluid. Further developments — including any public response from Pezeshkian, Vahidi, or the interim leadership council — are expected in the coming days as war and economic pressures intensify. Follow FFN’s Middle East coverage for the latest updates.
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