Iran’s president says he backs US talks but aligns with Khamenei’s ban

The Iranian president told parliament on Sunday that he initially supported negotiations with the United States but deferred to Supreme Leader Ali Khamenei’s position against engaging in talks.

“I believed it was better to engage in dialogue, but when the Leader said we would not negotiate with the US, I said, ‘We will not negotiate with the US, period,’” Masoud Pezeshkian said.

He added that government policy must align with Supreme Leader Ali Khamenei’s stance on the issue.

Khamenei, the country's ultimate decision-maker, rejected the idea of talks with Trump last month, calling them "neither wise, nor intelligent, nor honorable."

Speaking during the impeachment session of Minister of Economy Abdolnaser Hemmati, Pezeshkian described the challenges his administration faced upon taking office.

“When we took over the government, there was an imbalance in water, gas, electricity, and money,” he said, referring to the country's shortages.

Critics of Hemmati’s economic policies attribute the skyrocketing dollar exchange rate, rising food prices, and overall inflation to his leadership. The US dollar has surged to 940,000 rials, placing severe strain on households and businesses.

Addressing broader geopolitical issues, Pezeshkian likened the current situation to wartime conditions, citing incidents such as the killing of former Hamas leader Ismail Haniyeh on the first working days of his government and developments in Syria and Lebanon.

“We are in a full-scale war and must adopt a wartime posture... Today’s war is worse and more difficult than the war with Iraq,” he said.

He also referenced US sanctions on Iranian shipping, adding, “Trump imposed extensive sanctions on our ships, and now they are stuck, unable to unload their cargo... Qatar, Iraq, Turkey, and many other countries are not returning our dollars.”

During the impeachment hearing, lawmakers in favor of Hemmati’s removal argued that his policies had worsened the economic crisis.

One of these critics, MP Jabar Kouchaki-Nejad, criticized the government’s economic team, saying their performance had affected all social classes.

“Hemmati explicitly told us that the issues of currency depreciation and inflation have nothing to do with him,” Kouchaki-Nejad said.

MP Rouhollah Izadkhah also pointed out that the national currency had lost 62% of its value in a few months, while Rasoul Bakhshi Kouhpayeh pointed out that the exchange rate of the US dollar in Iran had increased 13,000 times over the past 50 years.

Hemmati defended his record, arguing that inflation had fallen by 10% under his tenure. “Seventy percent of the government’s expenses are covered through taxes. In the past month alone, the tax organization has collected 1700 trillion rials ($1.8 billion) in revenue,” he said.

He dismissed accusations that the government deliberately increased the exchange rate, saying, “The dollar rate is not real, and we will certainly bring it down.”

Some commentators, analysts and media outlets in Iran have pointed out in recent months that without a deal with the US and removal of sanctions the economy cannot improve. Some have also argued that impeaching a minister would not help to improve the situation.