Iran’s parliament speaker warned on Sunday that lawmakers could move to impeach President Masoud Pezeshkian’s cabinet if the government fails to rein in soaring prices, stepping up pressure on an administration grappling with a deepening economic crisis.
Mohammad Bagher Ghalibaf said runaway increases in the cost of basic goods had become one of the public’s main concerns, with rising foreign exchange and gold prices acting as key drivers – or what he called pretexts – for broader inflation.
Speaking in an open parliamentary session, Ghalibaf said the legislature had held a series of oversight meetings with senior government officials, including the ministers of economy, agriculture and industry, as well as the heads of the planning and budget organization and the central bank.
He said the talks had focused on preventing further erosion of household purchasing power, implementing a state-backed food voucher scheme and managing volatility in the currency market.
“If these measures do not deliver results, then in order to minimize time and tension, the priority will be for the government to repair its cabinet,” Ghalibaf said. “If the necessary reforms are not carried out by the government, representatives will be forced to begin the impeachment process.”
The warning adds to a widening chorus of concern inside Iran’s political establishment as inflation, a weakening rial and sharp rises in food and housing costs strain living standards, particularly for lower-income households.
Ghalibaf said parliament would continue to pursue the issue with urgency, stressing that lawmakers viewed the surge in prices for everyday necessities as a national priority.
The pressure on the Pezeshkian administration has also extended beyond economic policy.
During the same parliamentary session, dozens of lawmakers issued formal written warnings to the president and cabinet ministers on a wide range of issues, from perceived inequality in the state bureaucracy to delays in infrastructure projects, internet access, student housing and unpaid wages.
Such parliamentary admonitions are a routine feature of Iranian politics, but their volume shows the breadth of dissatisfaction as economic hardship deepens.
Impeachment is not a theoretical threat. In March 2025, just six months after Pezeshkian took office, parliament voted to impeach and remove Economy Minister Abdolnasser Hemmati, citing the rising dollar rate and higher prices for basic goods.
During that session, Pezeshkian hinted at the limits of his authority, pointing indirectly to Supreme Leader Ali Khamenei’s stance on relations with the United States and saying the government had to align itself with those positions.
Iran’s economic woes are rooted in years of sanctions, policy missteps and political constraints that have narrowed the government’s room for maneuver.
Inflation has remained high, the national currency has repeatedly hit record lows and the cost of essential goods has surged, eroding public confidence and adding to social tension.
The latest parliamentary threat comes as broader debates intensify over accountability and power in Iran’s political system. Moderates and reformist figures have increasingly argued that elected institutions lack the authority to address structural problems, while ultimate control over key areas of policy rests with unelected bodies under the Supreme Leader.
At the same time, even some of Pezeshkian’s former supporters have begun to question whether he can deliver meaningful change, with commentators and social media users warning that continued economic deterioration could trigger renewed unrest.
In a recent report, Donya-ye-Eghtesad said worsening sanctions have tightened what it described as Iran’s “economic bottlenecks,” accelerating capital concentration while pushing a growing share of households below the poverty line.
The paper pointed to the US Treasury Department’s decision on December 18 to sanction 29 oil tankers and the companies managing them, a move Washington said targeted Iran’s so-called shadow fleet used to bypass sanctions and export oil and petrochemical products.
The United States Department of the Treasury said the vessels and firms had transported hundreds of millions of dollars’ worth of Iranian products using deceptive practices.
The measures, the daily warned, would sharply reduce Iran’s foreign currency revenues, compounding pressure on an economy already struggling with inflation, currency depreciation and declining purchasing power.
Rising prices signal widening poverty
The surge in free-market prices for foreign currency and gold, the newspaper said, reflects the spread of poverty, with inflation driven by these increases expected to place additional strain on Iranian households in the coming months.
In recent weeks, both markets have posted repeated record highs, fueling broader inflationary expectations.
Over the past year alone, average food prices in Iran have risen by more than 66 percent, according to figures cited in the report. The paper said inflationary pressures have intensified following renewed UN sanctions and repeated statements by Iranian officials insisting on continuing the country’s nuclear program.
Ali Heidari, an Iran-based economic researcher quoted by Donya-ye-Eghtesad, said inequality in Iran is far worse than the global average.
“About 29 percent of the country’s wealth is held by just one percent of the population,” he said.
Poverty, Heidari added, has expanded rapidly. Around 26 percent of Iranians lived below the poverty line in 2022, he said, rising to 36 percent in 2023 – more than 31 million people. “If data for 2025 become available, the number will almost certainly be higher,” he said.
Who loses, who gains
Retirees, workers and salaried employees, Heidari said, have borne the brunt of economic pressure, as workshops and small businesses cut jobs or reduce working hours under sanctions. By contrast, he said, hoarders and speculative actors have benefited.
He blamed Iran’s tax system for encouraging non-productive and underground economic activity, arguing that weak transparency and incentives for speculation have helped fuel wealth concentration.
Analysts have long warned that Iran’s efforts to evade sanctions have contributed to systemic corruption – a policy Tehran continues to frame as “resistance” against international pressure.
