Iran’s Zarif resigns amid political wrangling over economic woes

Iranian President's strategic foreign policy advisor Mohammad Javad Zarif has resigned again. He is a key figure advocating for dialogue with the West, but faces strong resistance from hardline opponents. Zarif's resignation reflects the complexity of Iranian domestic politics and the pressure faced by reformists.

The former foreign minister was the leading figure in Iran's negotiations with global powers, which led to the 2015 Iran nuclear deal. He confirmed the news in an online post earlier on Monday, stating that it was a decision made after "the most painful period of my 40-year career." Zarif's resignation will undoubtedly have an impact on the future direction of Iran's foreign policy.

Notably, Zarif stated that he was "advised" by Judiciary Chief Gholamhossein Mohseni Ejei to resign and return to teaching at the university "to prevent further pressure on the government during this turbulent time in the country." This indicates the complexity of Iran's domestic power structure and the intense gamesmanship between different factions.

He has been under pressure from hardliners for months to resign due to a 2022 law that prohibits nationals with dual citizenship, or those with first-degree relatives holding dual citizenship, from holding political office. Zarif's two children are U.S.-born citizens. This legal restriction further exacerbated the political predicament Zarif faced.

Moderate President Masoud Pezeshkian has not publicly responded to the news, although state media reported that his office received the resignation. Mohseni Ejei met with senior judicial officials on Monday but did not comment on Zarif's resignation. In a video of the meeting released by state media, he only urged the judiciary to assist the government in managing the currency market. This reflects the economic challenges currently facing the Iranian government.

Zarif's resignation came hours after another moderate figure, Abdolnaser Hemmati, was impeached as Economy Minister by hardline and conservative lawmakers who have controlled the Iranian parliament through low-turnout elections for the past five years. Opponents portrayed the former central bank governor and failed presidential candidate as a "dangerous" influence on the Iranian economy and accused him of deliberately weakening the national currency to attract short-term liquidity to cover huge budget deficits.

With Nowruz New Year celebrations coming in about two weeks, bringing higher market and shopping activity, and with inflation at about 35%, the Iranian rial has been in freefall. Iranian officials fear more unrest, which they blame on foreign "enemies," particularly the United States and Israel, who have been expressing concerns about the possibility of more social upheaval that could undermine the regime. Economic pressures and social instability add to the challenges faced by the Iranian government.

Pezeshkian told lawmakers in a televised parliament session: "I personally think it is better to have talks. But the Supreme Leader said we do not negotiate with the United States. So, I also announce that we will not negotiate with the United States, and that is the end of it." The moderate president was elected in a runoff in early July, with half of eligible Iranian voters shunning the polls. Zarif was crucial to his election, repeatedly calling on Iranians to vote for better conditions. This statement reflects the ultimate decision-making power of Iran's Supreme Leader on foreign policy.

U.S. President Donald Trump, after being re-elected in 2024, emphasized his "maximum pressure" policy on Iran, and Iranian Supreme Leader Ayatollah Ali Khamenei asserted that there would be no negotiations with Washington. Foreign Minister Abbas Araghchi, a long-time ally of Zarif and another key figure behind the nuclear deal, warned that a full-scale war would erupt if the U.S. and Israel made good on threats to bomb Iranian nuclear and energy facilities. These remarks indicate Iran's concerns about external threats.

Iranian Foreign Ministry spokesman Ismail Baghaei told reporters at a press conference on Monday that international stakeholders "will certainly have their own views on this issue," but he would not speculate. Iran has held two rounds of "consultations" with European powers to reach a better understanding, and a third round has been on the agenda for months. Baghaei confirmed that Russia and the United States discussed the Iranian nuclear program in recent contacts. These talks took place before Russian Foreign Minister Sergey Lavrov's visit to Tehran last week and meeting with the president. These diplomatic activities indicate that the Iranian nuclear issue remains a focus of international attention.

Baghaei said at a press conference in Tehran: "What is important is that whatever happens related to the Iranian nuclear issue will certainly not happen without Iran's comment or approval." As Iran's nuclear program continues to expand significantly, China and Russia remain opposed to this level of political escalation, believing that the United States should be held responsible for withdrawing from the agreement without offering any alternatives. Tehran insists its nuclear program is peaceful. These statements highlight Iran's position on the nuclear issue, as well as the divisions among major powers.