IRGC chief Mohammad Pakpour in an event to commemorate slain aerospace commande Amir Ali Hajizadeh, Tehran, Iran, July 1, 2025
With the supreme leader’s retreat from view since the 12-Day War with Israel, Iran’s Revolutionary Guards (IRGC) appear to have taken on his role as political disciplinarian, nudging senior figures to keep their feuds out of public view.
It’s a task Ali Khamenei once handled directly — intervening to rein in factions and reassert unity — but his low profile in recent weeks has left a vacuum.
Not long before this “visible invisibility,” Khamenei publicly warned against the perils of political loose talk.
“Our shortcomings, our tongue wagging, our pointless bickering, our lack of patience, our incorrect analysis of the situation, sometimes change the course of history,” he said on April 24.
At the time, the remarks were read as a reprimand to officials for lax security and for letting their rivalries spill into the open, weakening Tehran’s hand in dealings with adversaries, above all Israel and the United States.
Now, those same dynamics are on display again, but it’s the IRGC playing nanny, sweeping up the shards of political infighting while Khamenei focuses elsewhere.
The clerical establishment is trying to thread an impossible needle: secure sanctions relief, or at least stave off a European “snapback” of UN sanctions, through diplomacy, while rebuilding its triple deterrence— missile and drone stockpiles, its proxy network, and uranium enrichment program.
Fracas One: ‘golden calf’
On August 5, Saeed Jalili, a Khamenei representative to the Supreme National Security Council and a prominent hardliner, lashed out at advocates of renewed talks with Washington, calling them “golden calf worshippers”—a scriptural reference denoting impatience and betrayal.
Jalili, who lost to Masoud Pezeshkian in the 2024 presidential race, has long opposed engagement with the West. But this time his remarks drew fire not just from reformists, but also from the hardest core of Iran’s power: the IRGC.
The IRGC-linked daily Javan warned that airing strategic disputes in public was “harmful,” while the Guards-affiliated Tasnim news agency cautioned against “radicalism.”
Only Raja News, tied to the sidelined family of late president Ebrahim Raisi, backed Jalili — a move likely aimed at clawing back influence.
Under sustained pressure, Jalili retreated on August 12, posting on X that failing to negotiate when opportunities arise would “cause losses,” citing Khamenei’s April endorsement of Oman-mediated nuclear talks with the U.S.
“You reject engaging in talks. What’s your alternative? Do you want to fight? Fine, [the adversaries will] strike again. Then you have to repair the damage… These are not issues to be approached emotionally,” he told critics.
Reformist outlets hailed his “realism” and “honesty,” while hardline media accused him of advocating “surrender.” Again, the IRGC intervened.
Aziz Ghazanfari, a senior political chief, praised Pezeshkian’s “honesty and purity,” but warned that “not everything should be said in public” and urged him to stick to pre-approved, scripted comments.
Whether the IRGC can keep senior politicians’ “tongue wagging” in check—and prevent Khamenei’s carefully balanced machinations from unravelling—may determine whether Tehran’s strategy holds or fractures again.
The latest round of US sanctions imposed on Iran mark a shift in Washington’s strategy, moving beyond conventional financial limits to target the intertwined financial and digital networks that sustain Tehran’s economy and political control.
US officials say software, fintech, and digital payment systems are now as important as oil profits in helping Iran evade sanctions and quell dissent.
The measures introduced earlier this month also seek to counter Tehran’s growing ties with China and Russia by disrupting both illicit revenue generation and technological control systems.
What’s new about the sanctions?
The latest sanctions move beyond traditional banks to strike at the broader financial-technology system that supports sanctions evasion and internal repression.
Digital infrastructure—including alternative payment platforms, shadow banking channels, and local fintech firms embedded with surveillance tools—is becoming a core part of Iran’s resilience.
Targeting these elements signals a systemic effort to weaken Tehran’s ability to operate at home and abroad.
Who and what is targeted?
Entities named by Washington include:
RUNC Exchange System Company, which US officials say runs an alternative interbank messaging network enabling transactions with sanctioned partners such as China’s Bank of Kunlun, bypassing SWIFT.
Cyrus Offshore Bank, based in the Kish Free Zone and allegedly linked to Parsian Bank, which the US claims hides transactions and channels oil revenue to the Islamic Revolutionary Guard Corps (IRGC).
FANAP, a Pasargad Bank affiliate, which develops fintech platforms for Iran’s National Information Network — a domestic internet infrastructure used for censorship and surveillance, replacing foreign apps favored by protesters.
These firms illustrate how sanctions now target two pillars of Iranian resilience: authoritarian digital control systems and clandestine economic networks.
What are the implications?
Economically, the sanctions cut off access to offshore intermediaries in hubs such as Hong Kong and the UAE, complicating trade-related transfers and oil-export revenue flows.
The disruption of fintech and alternative payment systems forces Tehran to continually adjust its financial workarounds.
Geopolitically, the measures deepen Iran’s reliance on China and Russia, whose “no limits” partnership offers diplomatic cover, technology, and economic channels through multilateral bodies like the UN Security Council, Shanghai Cooperation Organization, and BRICS.
US officials say these same networks help fund Iran’s nuclear and missile programs and regional proxies.
What are the risks?
Tighter integration with Chinese and Russian systems could shield Tehran from Western pressure, eroding US influence and complicating diplomacy.
This diversification may also encourage regional instability.
Why This Matters
The 2025 sanctions highlight Washington’s recognition that the digital-financial nexus is as central to Iran’s power as its oil revenues.
By striking both, the US aims to weaken Tehran’s repressive capacity and illicit funding streams—but the strategy also accelerates geopolitical realignments that may, over time, blunt Western leverage in the Middle East.
Iran’s customs data indicates that strategic reserves of animal feed have declined, raising warnings about potential impacts on the country's food security.
“Customs data shows a 60% decrease in soybean meal imports and an 8% decrease in corn imports in the first four months of this year compared to the same period last year,” ILNA news agency reported.
“Animal feed inputs of very low quality have reached end consumers at prices about twice the approved rates due to import monopolies — a trend that seriously threatens the country's food security in the sensitive period following June’s 12-day war with Israel,” ILNA quoted Mojtaba Aali, the CEO of the National Livestock Farmers Union, as saying, referring to June's 12-day war with Israel.
Aali said that livestock farmers in Fars province, a key hub for livestock production, recently held protests over the issue.
According to Iranian media, over the past five months, reserves of supplies such as corn and soybean meal, which are mostly imported from countries such as Brazil, have been significantly lower than the country’s monthly consumption.
In the same period, a rise in prices has been recorded, affecting most livestock farmers and their ability to purchase animal feed.
“Corn has been traded at 130,000 rials ($1.30), barley at 220,000 rials ($2.30), and soybean meal at 230,000 rials ($2.40),” ILNA reported.
According to S&P Global, the June war has left behind many issues facing the country's food security, not least regarding essential imports.
"Exporters of corn and soybeans in Brazil and Basmati rice from India have already raised alarms about trade with Iran due to rising insurance premiums, delayed payments, and wartime dangers such as jamming of navigation or communication systems," its analysts wrote.
As of 2025, data from Iran’s Statistics Center shows that the country’s agricultural land has shrunk to 15.43 million hectares, a decrease from 18 million hectares in previous years.
Farming continues to be a major source of livelihood, supporting over 4.5 million people, 89% of whom live in rural areas and 11% in urban settings, with the agricultural sector contributing roughly 8.3% to Iran’s GDP and employing about 27% of the national workforce.
Compounding this, over the past year, the country has experienced a 1.5°C increase in average temperatures and a 45% decline in rainfall, leading to further desertification across the country.
The average time to save for a home in Tehran is about 80 years, even as the capital witnesses a major wave of price decreases, the head of the Tehran Real Estate Consultants Union said.
“Currently, about half of tenants’ income is spent on rent, and to buy a house worth five to six billion tomans ($54,000 to $64,000), one would need to save for approximately 80 years,” Kianoosh Goodarzi said.
“The price per square meter of housing in northern Tehran has dropped by 30 to 50 million tomans ($321 to $535), but the 12-day war has had no impact on this price decline or the ongoing recession, which began during the COVID-19 period,” ISNA news agency cited Goodarzi as saying.
The costs of even basic items such as food continue to soar and the value of the Iranian currency continues to fall. The rial has lost over 90% of its value since US sanctions were reimposed in 2018.
Sanctions, corruption and economic mismanagement have contributed to the widespread economic hardship.
At least a third of the country is now forced to live below the poverty line, and the vast majority of Iranians are dissatisfied with the government’s economic policies, according to a poll by the country’s leading economic newspaper Donya-ye Eqtesad.
The poll results published on Monday showed that 89% of respondents were dissatisfied with the economic policies implemented by the Islamic Republic.
According to April statistics from the International Monetary Fund, unemployment in Iran now stands at 9.5%, up from 7.8% last year.
Impact of war
Asked if the 12-day war between Iran and Israel played any role in the real estate recession, Goodarzi said the downturn began long before that.
“The property market is very large, and the current recession is not due to the war, as we were already in recession beforehand."
He said suggested prices have dropped by 30 to 50 million tomans per square meter, but there have been no changes in contract agreements.
Israel launched land and air strikes targeting senior Iranian military leaders, nuclear scientists, and politicians, while damaging or destroying Iranian air defenses and nuclear facilities. The airstrikes killed over 1,000 people according to official statistics.
Pressure is building inside Iran’s political establishment for a fundamental change of course, with former president Hassan Rouhani joining a growing chorus warning that continued rigidity could lead to paralysis or trigger renewed unrest.
The convergence — from reformist academics to former officials close to the Supreme Leader — points to an unusual degree of agreement that the status quo, especially after the June war with Israel, is unsustainable.
“There is no way to save the country except for all of us to become servants of the people — to recognize that sovereignty belongs to the people,” moderate outlet Entekhab quoted Rouhani as saying on Thursday. “The Iranian nation owns Iran.”
Rouhani also urged an overhaul of media regulations to allow private broadcasters alongside the state’s. “We should have 10, 20, 30 channels that are private, owned by the people,” he said. “If we want the people to be with us, this is the way.”
‘Obligation to negotiate’
Rouhani’s remarks come amid a season of acute pressures — a setback in the June conflict with Israel, an economy battered by sanctions and mismanagement, and rolling water and electricity outages in a sweltering summer that have pushed many Iranians to the edge.
President Masoud Pezeshkian has in recent weeks all but raised his hands in defeat, implying that real power lies elsewhere when it comes to key policies such as relations with the United States.
Rouhani picked up where Pezeshkian left off.
“If we can improve relations with Europe, our neighbors, and both East and West—even reduce tensions with the United States—and it serves our interests, then why not?” he said.
“Not only is there nothing wrong with it, it is our duty and obligation.”
‘Iran in ruins’
Prominent sociologist Taqi Azad Armaki went further, calling for an ideological shift toward a normal state.
“The government has only two options: change its outdated approaches or face a deadlock,” he said on Wednesday. “Iran must embrace global norms to overcome its political, economic, and cultural challenges and improve its international image.”
But the most scathing take came from former MP Parvaneh Salahshoouri, who appeared to address Supreme Leader Ali Khamenei directly.
“With its ‘Islamic Ummah’ doctrine, the Islamic Republic built neither an ummah nor preserved the Iranian nation,” she posted on X, citing the Arabic word for religious community—central to the thinking and behavior of Iran’s theocratic rule.
“What remains is a ruined Iran, and from the Islamic Ummah, only curses and hatred toward it,” she added, leaving little doubt as to whom she blamed with direct references to Khamenei’s catchphrases.
“(The Islamic Republic) squandered ‘dignity and wisdom’ with the ‘no war, no negotiations’ stance — and yet there was both war and negotiations — and now it is even struggling to preserve Iran itself.”
Ali Larijani’s tour of Iraq and Lebanon a few weeks after his Russia visit underscores his re-emergence as a trusted envoy and crisis manager tasked with shoring up Tehran’s defences in the twilight of supreme leader Ali Khamenei’s rule.
In just three weeks, Larijani has traversed the highest corridors of Moscow, Baghdad, and Beirut.
The veteran conservative met Russia’s President Vladimir Putin in Moscow late July. This week, met Iraqi leaders, laid a wreath at the site of Qassem Soleimani’s killing, and visited Lebanon amid a push to disarm Tehran-allied Hezbollah.
Once sidelined from presidential politics, the former parliament speaker and IRGC founding member is now back at the centre of power—chairing the new Defence Council and is dispatched abroad to steady alliances and project resilience at a moment of regional strain and looming succession.
The itinerary reflects his rebirth: Moscow for geopolitical depth, Baghdad to reinforce Iran-aligned proxies, Beirut to guard influence amid Western-backed disarmament moves.
Syria lies outside the traditional axis: Assad has fallen, Jolani governs Damascus and IRGC forces have withdrawn, yet some Iranian influence endures through discreet networks and shadow intermediaries.
War mode reloaded
Larijani’s revival is no accident but a deliberate restoration of wartime instincts.
During the Iran–Iraq War, real power shifted from Khamenei’s ceremonial presidency to Majlis Speaker Rafsanjani, the acting Deputy Commander-in-Chief.
The slight was deeply felt by Khamenei, who spent much of his second presidential term at the front, forging bonds with commanders like Soleimani—ties that became the backbone of the Beyt-e Rahbari after he became Supreme Leader in 1989.
Khamenei disappeared from public view during Israeli strikes on Iran in June. The so-called 12-day war, in which many of his key protégés were killed, reinforced Khamenei’s long-held belief in relying on loyal men willing to risk all to preserve him.
That’s where Larijani enters the picture.
Unqualified no more
A former chief nuclear negotiator, he was deemed unfit to run for the presidency as late as 2024. Now, he has been placed at the helm of the Defence Council, positioned as both succession strategist and potential wartime coordinator.
Precedent underpins this orchestration.
In 2011, Ahmadinejad’s 11-day disappearance during a succession standoff left a vacuum between the presidency and the Leader’s office.
As speaker and a member of the Supreme National Security Council (SNSC), Larijani navigated the crisis amid speculation that IRGC-linked governance was filling the gap.
Today, Khamenei is again turning to the tools that preserved the theocracy in its formative years: centralised command, crisis-tested operatives, and the fusion of media, military, and diplomacy.Beirut’s standoff illustrates the stakes.
Lebanon test case
The US plan to disarm Hezbollah—paired with Israeli withdrawal and reconstruction aid—has exposed Lebanon’s political fault lines.
On the eve of Larijani’s arrival, Hezbollah denounced the plan as a “grave sin” and rejected it in cabinet, while the Lebanese army was tasked with drafting legislation to give the state a monopoly on arms.
Former President Michel Aoun and others have called for “arms under state authority” through dialogue, while Hezbollah insists on Israeli withdrawal first, warning it will resist any state compulsion.
Amid these fractures, Larijani’s mission is not the defence of state sovereignty but the calculus of regime survival—Khamenei’s answer from the past to a future laden with uncertainty.
Larijani is not simply a returning statesman but a recycled instrument from the Islamic Republic’s most turbulent chapters, tasked now with holding the line until the next hand—willing or not—seizes the tiller.