Following the impeachment and firing of Iran’s economy minister, influential Vice President Mohammad Javad Zarif announced his resignation, according to state news agency IRNA.
Zarif submitted his resignation to President Masoud Pezeshkian, marking another setback for the moderate-conservative leader just seven months into his term.
Zarif’s decision comes after the parliament, dominated by conservative hardliners, impeached and fired economy minister Abdolnaser Hemmati, a moderate and former central bank chief.
A total of 182 of 273 lawmakers voted to fire Hemmati on Sunday.
The ouster followed growing tensions over Iran’s prolonged economic crisis and soaring inflation. The rial has plummeted against foreign currencies, worsening living conditions. Many Iranians struggle with rising food prices, with meat and fish now considered luxuries.
Iran’s economy has been severely affected by international sanctions, especially after the U.S. withdrew from the 2015 nuclear deal. In 2015, the rial was worth 32,000 to the dollar, but by the time Pezeshkian took office in July, it had plummeted to 584,000 to the dollar. Recently, it dropped even further, with exchange shops in Tehran trading 930,000 rials for each dollar.
In 1979, while the Shah of Iran was still in power the exchange rate hovered between 69 to 70 rials to the dollar.
Zarif previously stepped down in August 2024 after just 11 days in office, citing differences with Pezeshkian over his conservative cabinet. However, he later returned to his role — now only to resign once again amid the latest political turmoil.
During the impeachment proceedings, Mohammad Qasim Osmani, a lawmaker supporting Hemmati, argued that rising inflation and exchange rates were not the fault of the current government or Parliament. He pointed to the budget deficit left by the previous administration, which he said contributed to the economic instability. Osmani also cited recent geopolitical events as factors that undermined public confidence, causing many people to convert their savings into foreign currency, which in turn further devalued the rial.
DPA/ AP/ Ya Libnan
