Facing escalating unrest and a mounting death toll, Iranian President Masoud Pezeshkian has announced planned economic reforms aimed at addressing teh root causes of widespread protests[[1]]. the moves come as Iran’s government navigates a deepening internal conflict between factions advocating for economic solutions and those demanding a forceful suppression of dissent, further complicated by ongoing international sanctions and regional geopolitical pressures[[2]]. The situation remains volatile, with the potential for further escalation both domestically and in the broader Middle East.
Iranian President Masoud Pezeshkian has pledged immediate economic reforms in an attempt to quell widespread protests that have resulted in hundreds of deaths, even as the military appears to be mobilizing in the capital, Tehran. The move comes as a more hardline faction within the government prioritizes a crackdown on demonstrations, seeking to ensure its own survival through repression.
The protests, initially sparked by economic grievances, have spread across Iran, fueled by a volatile currency, falling living standards, and soaring inflation – with some essential goods seeing price increases of up to 50%. Pezeshkian has vowed to tackle corruption and curb illicit access to foreign currency in an effort to stabilize markets and improve the economic situation for ordinary Iranians.
According to the Iranian Tasnim news agency, Pezeshkian stated that the planned reforms are intended to calm currency markets and alleviate financial pressure on families, particularly those with low incomes, who were initially offered government subsidies. The president also indicated that his administration is focused on bolstering domestic production in both the industrial and agricultural sectors.
Efforts to reduce Iran’s reliance on imports will involve collaboration with academics and experts. Pezeshkian added that expanding national production would help preserve foreign exchange reserves and support the economy, which has been significantly impacted by existing sanctions and the new measures imposed this week by U.S. President Donald Trump. Some of these sanctions target countries maintaining trade relationships with Iran, including China, India, Russia, Turkey, the United Arab Emirates, and Brazil.
Hardline Opposition
However, Pezeshkian’s moderate approach and focus on addressing the root causes of the protests are not universally shared within the government. A more hardline element, closely aligned with the country’s clerical leadership, appears more determined to suppress the demonstrations. Defense Minister Aziz Nasirzadeh threatened that the government would utilize all available resources to “suppress armed and savage terrorists” allegedly behind the unrest. “The perpetrators and implementers of the riots are being monitored,” he said, suggesting a potential escalation of the crackdown despite claiming the government has acted with restraint to date.
So far, the threat of intervention from the United States has served as a check on more forceful action. Washington has warned it will not indefinitely abstain from responding if the repression continues.
Nasirzadeh insisted the unrest was orchestrated by the United States and Israel, dismissing the economic factors highlighted by the president.
The Islamic Revolutionary Guard Corps – Iran’s most formidable military force – stands firmly with this hardline position. Brigadier General Mohammad Karami, commander of the IRGC’s Ground Forces, stated that the armed forces are “at maximum readiness” and on constant alert, citing a “comprehensive and hybrid war” being waged against the country across economic, social, political, and cyber domains.
Reduced Alert at Al Udeid
Meanwhile, security alerts at the Al Udeid Air Base in Qatar have been lowered after reaching their highest level on Wednesday, Reuters reported. Some U.S. personnel had been evacuated from Al Udeid, the largest U.S. military base in the Middle East, in response to retaliatory attacks following the U.S. strike on an Iranian nuclear facility in June.
Diplomatic sources indicated that some of the military personnel advised to leave the base have been authorized to return, and some warplanes previously withdrawn as a precaution are gradually being redeployed. Approximately 10,000 U.S. military personnel are stationed at Al Udeid, according to Al Jazeera.
