Iran's Parliament Dismisses Economy Minister over Rial's Decline

Iran’s parliament dismissed the economy minister on Sunday, amid mounting criticism of President Masoud Pezeshkian’s government over its handling of the economy and a sharp decline in the currency.

Abdolnaser Hemmati, Minister of Economic Affairs and Finance of Iran’s dismissal came after seven months in office, a period marked by mounting domestic and foreign challenges.

Since taking office in late July, Pezeshkian’s government has faced rising tensions with Israel, diminishing Iranian regional influence and pressure from hardline factions who blame his administration for the country’s economic crises.

Pezeshkian, a moderate politician and heart surgeon, succeeded former Iranian President Ebrahim Raisi, who died in a helicopter crash in 2024. One of his biggest challenges is overcoming conservative opposition to his efforts to revive negotiations on a nuclear deal that had previously given Iran relief from crippling economic sanctions.

In a televised address to parliament on Sunday, Pezeshkian acknowledged that his ambitions to negotiate a new deal with US President Donald Trump, who withdrew from the 2015 accord during his first term, had faltered. “I thought negotiation would be the best option,” he said, adding: “The supreme leader said we will not negotiate with America, so I said we will not negotiate with America, and that’s it.”

Critics of Abdolnaser Hemmati in parliament have described him as unqualified to manage Iran’s economic policies, focusing in particular on his failure to stem the sharp decline of the rial, Iran’s national currency. 

They have also accused him of overly linking Iran’s economic recovery to the shaky nuclear negotiations rather than prioritizing domestic reforms. Since Pezeshkian took office, the rial has fallen to record lows, losing about 60% of its value against the dollar to 42,112.50.