Cabinet Deliberations: Pezeshkian Navigates Internal Pressures Ahead of Inauguration

The Transition Process

In the lead-up to his formal inauguration scheduled for July 30, Masoud Pezeshkian is engaged in a delicate balancing act. Following his election victory on July 5, the President-elect has been under intense scrutiny from both the reformist base that propelled him to power and the conservative establishment that maintains control over the state’s strategic levers. The 'Tanfiz' ceremony, where the Supreme Leader formally endorses the president, is expected to set the tone for the coming four years.

Information emerging from the transition team, led by former Foreign Minister Mohammad Javad Zarif, suggests that Pezeshkian is attempting to form a 'government of national unity.' However, this approach is meeting resistance from the Majlis (Parliament), which is dominated by hardline factions. Key appointments, particularly the ministers of Foreign Affairs, Petroleum, and Intelligence, require the tacit approval of Supreme Leader Ali Khamenei and are subject to parliamentary confirmation.

Foreign Policy and Sanctions

Pezeshkian has consistently stated that his primary objective is to alleviate the economic burden on the Iranian populace through sanctions relief. This requires a revival of the Joint Comprehensive Plan of Action (JCPOA) or a similar diplomatic framework. In his first few weeks as President-elect, he has held numerous calls with regional leaders, including those in Iraq, Qatar, and Russia, to signal continuity in Iran's 'Neighborhood Policy.'

Crucially, Pezeshkian’s rhetoric has focused on 'dignified engagement.' He recently stated in a letter to Hamas leader Ismail Haniyeh that Iran’s support for the 'Resistance' remains a fundamental pillar of its foreign policy, an attempt to reassure the IRGC and hardliners that any dialogue with the West will not come at the expense of regional influence. This dual-track strategy—reassuring the hardliners while signaling openness to the West—will be difficult to maintain once formal negotiations resume.

Economic Hurdles

Domestically, the new administration faces a staggering inflation rate of approximately 40% and a currency that continues to depreciate against the dollar. Pezeshkian’s economic advisors are proposing a series of reforms aimed at increasing transparency and reducing the influence of state-linked entities in the economy. However, without a significant increase in oil revenues or the unfreezing of foreign assets, these reforms are unlikely to yield immediate results. The market is watching the selection of the Petroleum Minister closely, as this individual will be responsible for navigating the 'grey market' sales to China that currently sustain the Iranian budget.