Iranian Officials Blame Each Other Amid Deepening Economic Crisis as Rial Stabilizes After Recent Depreciation

Iran's Economy Minister rejects the U.S. Treasury Secretary's assessment of imminent economic collapse, attributing rial depreciation to market psychology.

Here's exactly what each side is claiming.

The disagreement: Iranian Economy Minister Ali Madanizadeh claims that predictions of economic collapse are intended to create unrest and stress in the currency market, while U.S. Treasury Secretary Scott Bessent states that the collapse of the rial is evidence of the effectiveness of Washington's pressure campaign.

Each outlet's position is reported as that outlet's position, not as established fact. Every contradiction we've recorded →

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The Iranian economy faces significant challenges due to high inflation, ongoing international sanctions, and internal disputes over economic policy, contributing to persistent instability.

📌 Key developments

• Iranian officials are publicly blaming each other for the deepening economic crisis, with year-on-year inflation nearing 90 percent and food prices rising even faster.
• The Iranian rial remained stable today at 2,633,000 per US dollar (remittance) and 2,639,000 per US dollar (open market), following a 1.54% rise yesterday.
• Iraq secured a US exemption for Iranian airlines, excluding Mahan Air, to operate 40 daily flights to Najaf, despite US sanctions on Iran's aviation sector.
• [Oct 2] The U.S. Treasury Department expanded sanctions on Iran's automotive and rail sectors, targeting major companies Iran Khodro and SAIPA, and the Islamic Republic of Iran Railway Company, as part of 'Operation Economic Outcast.'
• [Oct 2] The U.S. Treasury also targeted the Russia-linked A7 Network, describing it as a 'shadow banking network' used by Iran for sanctions evasion.

💡 Why it matters

The public blame game indicates increasing internal pressure within the Iranian government regarding the economic crisis. The temporary stabilization of the rial offers a brief reprieve but does not address underlying issues. The Iraq flight exemption provides a limited but notable avenue for Iranian aviation despite broader sanctions.

🎭 People in the news

• Ali Madanizadeh — Iranian Economy Minister, who rejected the U.S. assessment of economic collapse and attributed rial depreciation to market psychology.
• Scott Bessent — U.S. Treasury Secretary, who stated the U.S. pressure campaign is working and has driven the rial to its lowest level.
• Donald Trump — U.S. President, who predicted a short-lived Iran conflict and stated Iran is 'not doing well' economically.
• Mohammad Ali Dehghan Dehnavi — Head of Iran's Trade Promotion Organization, who stated Iran-EAEU trade is on an upward trend.

👀 What to watch

• Further statements from Iranian officials regarding economic responsibility.
• Any shifts in the rial's value on the open market.
• Reactions from the U.S. or other international bodies to the Iraq flight exemption.