Pezeshkian acknowledges war-related financial pressure as Iran faces critical conditions

Iranian President Masoud Pezeshkian acknowledged on Sunday that the government is facing financial pressure from the war, saying the country is going through “critical conditions” as Tehran continues to balance military action with diplomatic efforts.

Pezeshkian said criticism of the government's performance was straightforward in theory but far more complicated in practice under the current circumstances, according to comments reported by Iran's Fars news agency.

“Despite debts and problems inherited from the past, restrictions on oil exports, and the financial burdens resulting from the war, the government has managed to meet its obligations and control spending,” Pezeshkian said.

His remarks come as US pressure on Iran's economy continues to affect the country's oil exports and efforts to evade sanctions. Reuters reported earlier this month that Washington's campaign to restrict Iran's oil exports and sanctions-evasion networks was increasingly affecting the country's economy.

The economic pressure comes alongside ongoing diplomatic contacts. Iran and the United States have signalled in recent days that they remain open to renewed negotiations, although significant differences continue over the terms of any agreement.

Pezeshkian has previously argued that the conflict cannot be resolved through military means alone. In August, he said Iran needed to pursue dialogue while maintaining its ability to respond militarily, and called for a political solution to end the conflict.

Parliament Speaker Mohammad Bagher Ghalibaf also rejected the idea that Iran must choose between fighting and negotiating.

“The dichotomy of war versus negotiations is not real; we must fight and negotiate at the same time,” Ghalibaf said, according to the report carried by Fars.

The comments reflect the position expressed by senior Iranian officials in recent months that military pressure and diplomacy can proceed simultaneously. Ghalibaf has been involved in Iran's political and diplomatic response to the conflict, while Pezeshkian has repeatedly called for negotiations alongside maintaining Iran's military capabilities.

Pezeshkian's acknowledgement of the financial burden comes as the prolonged conflict and restrictions on oil exports place additional pressure on an economy already dealing with accumulated debts and other structural problems.

Iran's economic difficulties have also been reflected in rising pressure on households and businesses. Recent reporting has pointed to sharp increases in the cost of basic goods and broader disruption to economic activity as the conflict and restrictions on trade continue.

The Iranian government has continued to argue that it can meet its obligations despite the pressures, while seeking diplomatic avenues that could reduce the economic and military costs of the conflict.