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Iran security chief acknowledges worst economic period as rial hits record low
In short
Iran's Supreme National Security Council secretary-general, Mohsen Rezaei, told a high-level government meeting that the country is in one of the hardest periods it has faced, according to Yonhap, Newsis and Asia Economy, citing the New York Times and Iranian state media. President Masoud Pezeshkian acknowledged the worsening economy the same day and said the government had adopted a new approach without giving details. The rial rose to a record 2,567,000 per dollar on Sept. 30, more than seven months into the war with the United States, as talks remain deadlocked over sanctions relief and the Strait of Hormuz.
Why it matters
Iran's currency collapse, blocked oil exports and fuel crisis affect global energy markets, and the documents tie them to a stalled negotiation with Washington over the Strait of Hormuz. The reported departure of public-sector workers and pension protests suggest the economic pressure is reaching everyday livelihoods, which the documents present as a constraint on how long Iran can hold its position in the talks.
Key facts
- Mohsen Rezaei, secretary-general of Iran's Supreme National Security Council, said at a high-level government meeting on Oct. 3 that Iran is in one of the hardest periods it has faced, according to Yonhap, Newsis and Asia Economy. [ 1 , 2 , 3 ]
- President Masoud Pezeshkian attended the meeting and said in a social media statement the same day that the government had adopted a new approach to manage the “special situation”, without specifying the measures. [ 1 , 3 ]
- The rial reached 2,567,000 per dollar on Sept. 30, a record, according to the exchange-rate site Bonbast, compared with 1.5 million to 1.6 million before the war in mid-to-late February. [ 1 , 3 ]
- The war began in February with a surprise US and Israeli attack, and Iran's economy has deteriorated sharply since, with the decline accelerating as Washington tightened sanctions and imposed a naval blockade. [ 1 , 3 ]
- Nurses, teachers and public and private sector employees have posted on social media that they will quit because salaries no longer cover living costs, and Iranian local media reported retired civil servants have protested in recent weeks over unpaid pensions. [ 1 , 3 ]
- Oil Minister Mohsen Paknejad resigned, and Hamid Bord, president of the National Iranian Oil Company, was named acting oil minister, according to Yonhap, citing Reuters. [ 1 ]
- Iran's seven-day confidence-building proposal offers to reopen the Strait of Hormuz within seven days if the United States lifts its naval blockade, returns frozen funds immediately, exempts Iranian oil exports from sanctions and halts fighting on all fronts. [ 1 , 3 ]
Confirmed by several sources
- Iran's security chief publicly described the economic situation as one of the country's hardest periods, an admission the outlets called unusual. [ 1 , 2 , 3 ]
- President Pezeshkian acknowledged the worsening economy and said the government had adopted a new approach to manage the situation, without detailing it. [ 1 , 3 ]
- The rial hit a record 2,567,000 per dollar on Sept. 30, about a third of its pre-war value. [ 1 , 3 ]
- The war with the United States began in February after a surprise US and Israeli attack, and has lasted more than seven months. [ 1 , 3 ]
- A July memorandum of understanding on a roadmap to end the war, mediated by Pakistan, lapsed over disagreements on control of the Strait of Hormuz, leaving talks stalled. [ 1 , 3 ]
- Iran's oil minister resigned and an acting minister was appointed, according to the presidential office cited by Yonhap, an official-type outlet reporting Reuters. [ 1 ]
Still unclear
- Rezaei's exact wording Iranian state media did not quote him directly, and Yonhap says IRNA only described his remarks indirectly, so the precise phrasing is not established in the documents.
- What Pezeshkian's “new approach” consists of Both Yonhap and Asia Economy say the government did not specify what the new approach means.
- When Oil Minister Mohsen Paknejad resigned and why The presidential office said he had resigned “long ago” for personal reasons, an account carried only by Yonhap citing Reuters; no date or further detail is given.
- Whether the seven-day proposal will be implemented The documents say the two sides are still contesting the order in which sanctions relief and the reopening of the Strait of Hormuz would take place, and that a conclusion is not expected soon.
- The content of the Newsis article body The text published under Newsis's Iran headline concerns an unrelated DMZ mine incident in South Korea, so only its headline was used for this event.
What local media are saying
Official sourcesYonhap, the national news agency, attributed the remarks to the New York Times and Iranian state media, noted that IRNA did not quote Rezaei directly but described his words, and added exchange-rate data from Bonbast, the oil minister's resignation via Reuters, and details of the July memorandum and Iran's seven-day proposal.
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Business mediaNewsis and Asia Economy led with the security chief's acknowledgement of a severe economic crisis, framing it as an unusual admission and citing US media. Asia Economy detailed the rial's record low, the departure of nurses, teachers and other workers, pension protests and the deadlock over the sequencing of sanctions relief and the reopening of the Strait of Hormuz. Newsis's article body carried unrelated text about a DMZ mine incident while its headline addressed the Iran story.
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Timeline, local time
- Yonhap publishes its report that SNSC secretary-general Mohsen Rezaei told a high-level meeting on Oct. 3 that Iran is in one of its hardest periods. [ 1 ]
- Newsis publishes a headline report citing US media on Rezaei's remark. [ 2 ]
- Asia Economy publishes its report on the remarks, the rial's record low and the stalled negotiations. [ 3 ]