Skip to content
You can now search across every topic, entity and event.What's new
European Oil Markets
3JUL

IRGC Blocks Pezeshkian as He Warns of Collapse

2 min read
10:26UTC

Iran's elected president says the economy will fail within weeks. The generals who control access to the Supreme Leader rejected his assessment.

EconomicDeveloping
Key takeaway

The IRGC benefits from the war that Pezeshkian says will destroy Iran's economy.

Ahmad Vahidi, the IRGC's effective chief, continued to block President Masoud Pezeshkian from reaching Supreme Leader Mojtaba Khamenei on 5 April . 1 Vahidi also blocked civilian government appointments. The military council that seized access to the Supreme Leader now oversees daily operations.

Pezeshkian has warned privately of "complete economic collapse within three to four weeks without a ceasefire." The IRGC leadership rejected the assessment. Accepting a ceasefire would require the IRGC to relinquish the control it has gained over civilian governance. The generals who would need to negotiate are the same generals whose authority depends on continuing to fight.

Iran's General Aliabadi dismissed Trump's latest threat as "helpless, nervous, unbalanced and stupid," adding: "the gates of hell will open for you." No path to a ceasefire runs through the IRGC.

Deep Analysis

In plain English

Iran has an elected president, Masoud Pezeshkian, who says the country is heading for total economic collapse in three to four weeks without a ceasefire. But the generals of the Revolutionary Guard, the most powerful military force in the country, are blocking the president from speaking to the Supreme Leader. The Supreme Leader is the person with actual authority over whether Iran negotiates. The generals who would need to agree to a ceasefire have gained power because of the war. Agreeing to a ceasefire means giving some of that power back.

Deep Analysis
Root Causes

The IRGC's incentive structure during wartime is fundamentally different from the civilian government's. The IRGC gains expanded authority, budget, and political influence from the conflict. Pezeshkian's ceasefire warning, if acted upon, would require the IRGC to relinquish those gains. The institutional interest of the IRGC in continuing the war is the structural cause of Pezeshkian's isolation.

Ahmad Vahidi's role is specifically relevant: Vahidi was previously Iran's Defence Minister (2009-13) and is under Interpol notice for the 1994 Buenos Aires AMIA bombing. His institutional knowledge of how to consolidate security sector control within Iran's factional system is deep and specific.

What could happen next?
  • Consequence

    Any ceasefire requires IRGC acceptance, but the IRGC's institutional interests are served by the war's continuation. This creates a structural deadlock independent of any diplomatic framework.

  • Risk

    IRGC wartime power consolidation may prove irreversible post-conflict, further marginalising Iran's elected civilian government in the conflict's aftermath.

First Reported In

Update #59 · Day 37: A Ground War Inside Iran That Nobody Will Name

Jerusalem Post· 5 Apr 2026
Read original
Different Perspectives
Greek shipping registries
Greek shipping registries
Flag states dominating the tanker fleet await the EU's 15 July cap-freeze vote. A formula unlock toward $75 would loosen the ceiling squeezing insurance and crewing costs on their registered hulls.
US money managers
US money managers
NYMEX WTI managed-money net long fell 23% to +64,041 in the week to 7 July, trimming length into the rally on doubt the Hormuz premium survives without freight or war-risk confirmation.
European refiners (ARA)
European refiners (ARA)
ARA refiners are capturing an $80/bbl US diesel crack as Russian gasoil loadings collapsed to 234kbd before Novak's 31 July export ban even bites, widening the arbitrage straight into refining margins.
OPEC+
OPEC+
The seven-member group confirmed a fourth consecutive 188kbd August hike on 5 July, defending market share even though Saudi Arabia's $108-111/bbl breakeven means every added barrel costs Riyadh revenue it cannot recoup.
Indian refiners
Indian refiners
Refiners kept lifting discounted Urals as the India/Baltic split widened past $9-10 a barrel on 7 July. A wider Urals-Brent gap means cheaper feedstock locked in against Baltic buyers.
Russia
Russia
Urals traded $48.95-55.12 on 12-13 July, below Moscow's $59 budget floor even as Brent gained $6. Oil and gas fund roughly 30% of federal revenue, and Novak's diesel export ban is rationing a shrinking export base.