• Iranian President Masoud Pezeshkian speaks during the 38th International Islamic Unity Conference in Tehran, Iran, Thursday, Sept. 19, 2024 (AP)

Iranian President Masoud Pezeshkian dismissed Shahram Dabiri, the vice president for parliamentary affairs, after the latter's luxurious trip to the South Pole during the Nowruz holidays.

In a decree issued on Saturday, Pezeshkian stated that after reviewing a report on the trip, he decided to terminate Dabiri's position.

The president emphasized that extravagant trips by officials, even if financed by personal funds, are "not defendable and justifiable and run contrary to a minimalist lifestyle expected of Iranian officials."

“[Our] longtime friendship and your invaluable services at the Vice-Presidency for Parliamentary Affairs do not preclude prioritizing adherence to honesty, justice, and the promises made to the people,” Pezeshkian told Dabiri.

Iranian lawmakers sack finance minister over soaring inflation

In early March, Iran's parliament removed the country's finance minister, Abdolnaser Hemmati, after he was impeached over soaring inflation and a plunging currency, according to state television.

Hemmati, who had served as economy and finance minister, lost a confidence vote with 182 of 273 lawmakers present backing his removal.

Pezeshkian had defended Hemmati, a former central bank governor, telling lawmakers, "We are in a full-scale (economic) war with the enemy... we must take a war formation."

He continued, "The economic problems of today's society are not related to one person and we cannot blame it all on one person."

Despite Pezeshkian's defense, lawmakers strongly criticized Hemmati, attributing the country’s economic difficulties to his policies.

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"People cannot tolerate the new wave of inflation; the rise in the price of foreign currency and other goods must be controlled," said parliamentarian Ruhollah Motefakker-Azad.

Another lawmaker, Fatemeh Mohammadbeigi, added, "People cannot afford to buy medicine and medical equipment."

Pezeshkian, who assumed office in July with the goal of revitalizing the economy and easing Western-imposed sanctions, has seen the depreciation of the rial worsen, particularly after the fall of Syrian leader Bashar al-Assad in December 2024.

The day before al-Assad's government collapsed in Damascus, the US dollar was trading for around 717,000 rials on the black market.

Hemmati defended his policies by stating, "The rate of the foreign exchange is not real; the price is due to inflationary expectations."

The minister also acknowledged that "chronic inflation" was the country's most pressing economic issue.

Following his dismissal, Rahmatollah Akrami, a deputy economy minister, was appointed as the interim finance minister, according to Iran's ISNA news agency.

Iran’s economy has been heavily impacted by decades of US-led sanctions, with inflation rates rising sharply since the US withdrew from the 2015 nuclear deal in 2018. The Joint Comprehensive Plan of Action (JCPOA) had eased sanctions and encouraged Western investment in exchange for restrictions on Iran's nuclear program.

Under President Donald Trump, the "maximum pressure" campaign was reintroduced, tightening restrictions on Iran while simultaneously calling for negotiations.

Since 2018, Iran’s economy has been under pressure from high inflation, rising unemployment, and a depreciating currency, with significant repercussions for the Iranian population.

In 2018, then-Economy Minister Masoud Karbasian was also impeached over the worsening economic conditions. Since 2019, inflation in Iran has exceeded 30% annually, with a staggering 44% rate in 2023, according to World Bank data.

In April 2023, lawmakers voted to dismiss then-Minister of Industry Reza Fatemi Amin due to rising prices linked to international sanctions.

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