Masoud Pezeshkian

Pezeshkian publicly offered immediate reciprocal action if the US returns to the 14-point Islamabad MoU brokered by Pakistan, which collapsed after US July 8 strikes, Trump's July 9 invalidation, and Iran's July 12 closure of the Strait of Hormuz. He met Qatari PM Sheikh Mohammed Al Thani in Tehran on August 27 and Pakistani Field Marshal Asim Munir on the same track, seeking mediation to restore the framework. At the SCO summit in Bishkek on September 1, he proposed a parliamentary assembly and security center, and advocated an SCO bank and export credit agency to counter US financial pressure. Egyptian mediation runs through FM Araghchi at the foreign-minister level.

Pezeshkian publicly acknowledged inflation of 66 to 80 percent, a 25 to 35 percent plunge in foreign trade, and an 80 percent-plus drop in August crude exports, attributing the crisis to US sanctions and the naval blockade. The rial hit a record low above two million to the dollar, prompting Central Bank Governor Hemmati to announce a $2 billion injection. Pezeshkian has relied on borrowing, money-printing, and $45 billion in gold reserves to sustain fiscal obligations, and is weighing fuel price increases as gasoline rationing takes effect amid a 15-million-liter daily deficit.

Pezeshkian leads the pragmatist faction pushing for a conclusive agreement, arguing Iran should end the war while it holds a position of strength and dignity. Hardline conservatives reject diplomacy as endurance and accuse moderates of deliberately mismanaging the economy to force a deal. SNSC Secretary Mohsen Rezaei, a hardline rival, has threatened to target American economic interests with intensity and force, a posture at odds with Pezeshkian's diplomatic push. Supreme Leader Mojtaba Khamenei demanded serious action on inflation, unemployment, and price management, but Pezeshkian admits communication with him is very difficult, with no cabinet member having met Khamenei in five months. The 13-person SNSC governs collectively amid factional infighting with IRGC hard-liners led by Ahmad Vahidi.

Trump rejected Pezeshkian's peace offer and authorized strikes on two Iranian rocket launchers on Larak Island to prevent Strait of Hormuz mining. Iran retaliated against US forces in Jordan and the UAE. Pezeshkian stated Iran was not seeking war but would never remain silent in the face of aggression. He conditions reopening the strait on the US lifting sanctions, releasing frozen assets, beginning investment, and ending the war in Lebanon. He secured a temporary shipping corridor and joint mine-clearing deal with Oman but maintains the strait stays closed until US demands are met.

Pezeshkian's government suspended IAEA inspector access to Iran's nuclear facilities in July and is now using the threat of 90 percent enrichment, drawing on a 440 kg stockpile of 60 percent enriched uranium, alongside a parliamentary NPT-withdrawal bill as diplomatic leverage against Washington. Foreign Minister Araghchi maintains that nuclear weapons are religiously prohibited, preserving a distinction between coercive posture and declared policy.