Iranian President Masoud Pezeshkian has lamented the severe economic challenges posed by US sanctions on the Islamic Republic during a parliamentary hearing on March 2 but refused to negotiate with Donald Trump. 

In an emotional speech, at the impeachment hearing of Iran’s former Minister of Economy and Finance Abdolnasser Hemmati, Pezeshkian highlighted the difficulties faced by the country due to American sanctions but reaffirmed Tehran’s refusal to engage in dialogue with Washington due to Donald Trump's so-called "Maximum pressure" campaign targeting Tehran's oil exports. 

“We are in a full-scale war with the enemy, and they are imposing economic pressure on us. The situation today is worse than the eight-year war with Iraq,” he said, referring to the deadly war which left more than 500,000 Iraqis and Iranians dead.

Pezeshkian stressed that he would stand by Supreme Leader Ayatollah Ali Khamenei's position of not entering talks with the US, following the clerical leader's earlier edict in January.

“The Leader [Khamenei] said that we will not talk to the United States, and I announce that we will not talk to the United States. It is over,” he said.

“I believe in dialogue and will remain so, but what the Leader has determined regarding [negotiations with] the United States, we will stand on this position until the end and will not act on anything else,” he added. 

“With Trump's signature, the country's oil tankers and gas ships are left adrift, wondering how to get the energy to its destination,” he said, ISNA reported.

The Iranian president also pointed to financial challenges caused by the non-repayment of debts by several countries.

“Qatar will not return $6bn, and Iraq and Turkey are not paying back their debts either,” he said.

The $6bn in question refers to Iranian oil revenues frozen in South Korean banks due to US sanctions. In 2023, as part of a prisoner swap deal brokered by Qatar, the funds were transferred to accounts in Doha.

However, following the outbreak of the Gaza war on October 7, 2023, reports emerged that the US and Qatar had reached a “quiet understanding” to block Iran’s access to these funds.

During a recent meeting with Qatar’s Emir, Sheikh Tamim bin Hamad Al Thani, Iran’s Supreme Leader Ayatollah Khamenei blamed the US for obstructing the agreement and urged Qatar to resist Washington’s pressure and return the funds.

Pezeshkian painted a grim picture of Iran’s economic situation, comparing the current challenges to those faced during the eight-year Iran-Iraq war in the 1980s as the rial continues to hover above IRR920,000 against the US dollar on March 2.

Following his statement in parliament late on March 2, Iran's First Vice President, Mohammad Javad Zarif announced his departure from the Iranian cabinet, later confirmed by the national broadcaster IRIB.