On October 15, Iranian President Masoud Pezeshkian addressed significant domestic challenges faced by the government, outlining issues in electricity, water, gas, fuel, environment, banking, budget, and pension funds. Speaking at a Nurses’ Day event, he warned that adversaries could exploit these issues to cause social fragmentation and acknowledged that the existing imbalances remain unresolved.
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Pezeshkian urged against allowing economic and social disputes to deepen, stressing the need for preserving social cohesion while recognizing that many Iranians have valid grievances. He noted that simply issuing orders or implementing short-term fixes will not solve these long-standing social problems, indicating the government perceives economic dysfunction as a potential source of broader instability.
The government’s concerns were echoed in state media, which promoted ongoing pro-regime gatherings in various cities as proof of resilience against adversaries, despite the acknowledgment of unresolved domestic challenges that could potentially lead to societal fractures.
In a separate incident, Yasser Taheri, a cleric in northern Iran and a member of the Mazandaran Clergy Society, was reportedly killed in his home on October 15 with a bladed weapon, though the motives and identity of the assailants remain unknown. This incident came just a day after attacks in Mehrestan that resulted in the deaths of an officer and a local Basij commander, highlighting ongoing security concerns in the region despite government claims of dismantling armed groups.
Furthermore, the economic outlook worsened as Central Bank governor Abdolnaser Hemmati stated the bank's goal is to limit inflation acceleration rather than stabilize prices. He emphasized that available foreign-exchange reserves would be prioritized for essential goods and outlined reliance on limitations on bank growth and market operations.
The World Bank’s October report indicates a projected contraction of 7.7% in Iran’s real GDP for 2026/27, alongside significant declines in investment, exports, and imports. Inflation is expected to reach 74.2%, and the poverty rate among the upper-middle-income population is anticipated to rise. The report also highlights pre-existing issues, such as economic mismanagement and instability, complicating the regime's narrative attributing current hardships to external pressures.
Internally, there is increasing political tension, as 35 MPs have initiated a motion to impeach Foreign Minister Abbas Araghchi following a meeting where lawmakers expressed dissatisfaction with his handling of foreign policy. This reflects a rift within the parliament as the regime struggles to maintain unity amidst various escalating challenges.