Iran's Khamenei calls for unity as economic pressures bite

Iran's Supreme Leader Ayatollah Mojtaba Khamenei has called for national unity amid mounting economic challenges, urging officials to avoid highlighting the country's vulnerabilities. In a statement released on Sunday, Khamenei emphasized the need to prioritize boosting production, reducing reliance on the U.S. dollar, and implementing resistance economy policies. This directive comes as Iran grapples with severe economic pressures, including a deteriorating currency, soaring inflation, and a critical fuel shortage. Khamenei has not made public appearances since being wounded in a U.S.-Israeli airstrike six months ago, which killed his father, former Supreme Leader Ayatollah Ali Khamenei. His prolonged absence has raised questions about his health and the extent of his influence in governance. The Islamic Revolutionary Guard Corps is increasingly viewed as playing a central role in decision-making, reflecting a shift in power dynamics within Iran. The situation has intensified with long lines forming at petrol stations across Tehran, some of which closed or ran out of fuel despite the government distributing record amounts of gasoline in the capital. This surge in demand appears to be driven by panic buying, fueled by fears of rising prices and restricted supplies. Although the government has stated that subsidized fuel prices will remain stable, officials are considering structural reforms and higher non-subsidized prices. Public frustration over the collapsing rial, high costs, and the overall cost of living led to deadly demonstrations in December and January. These protests were further exacerbated by petrol shortages, supply interruptions, and long waits for basic services, deepening public anxiety regarding the reliability and affordability of essential goods. Khamenei has stressed the importance of preserving unity and social cohesion, stating that actions undermining these values are forbidden. He also dismissed what he termed the "imaginary dualism" of war or negotiation, highlighting internal divisions in Tehran over the best approach to dealing with Washington. These divisions have become more visible, with figures like Parliament Speaker Mohammad Bagher Ghalibaf advocating for negotiations as a means to advance Iran's national interests, while hardliners warn that such a stance might undermine the revolutionary system. As the U.S. escalates efforts to isolate Iran economically, Treasury Secretary Scott Bessent is anticipated to urge G20 nations to sever financial and commercial ties with Tehran during a meeting this week. Bessent has warned that ongoing trade with Iran could threaten access to the dollar-based financial system. This strategy, known as Operation Economic Outcast, aims to compel Tehran back into negotiations and reopen the Strait of Hormuz. Iran's oil exports have reportedly dropped to zero, the rial has reached historic lows, and inflation continues to exceed 80 percent. Khamenei's push to diminish the dollar's role is a direct response to these economic pressures and the impact of U.S. sanctions. He has encouraged the utilization of Iranian technology and domestic resources, suggesting improved management and enhanced production capacities could aid Iran in enduring sanctions and wartime disruptions. Khamenei also commended President Masoud Pezeshkian's administration for sustaining essential supplies, restoring damaged infrastructure, and overseeing energy operations. Pezeshkian has acknowledged the "difficulties and hardships" faced by the nation while asserting that his government is working to stabilize the economy.