Iran's president steps down: IRGC ran the country — oil prices rise

President reportedly sent letter directly to Supreme Leader

Iranian President Masoud Pezeshkian has reportedly submitted his resignation in a written letter addressed directly to Supreme Leader Ali Khamenei, according to ForexLive/InvestingLive. In the letter, he is said to have claimed that the Islamic Revolutionary Guard Corps (IRGC) has taken control of all key state institutions, and that the civilian presidency has been reduced to a purely ceremonial function with no real influence.

Pezeshkian reportedly also wrote that he was kept out of all major decisions and could not continue to govern under such conditions — where responsibility rests with the president, but power lies with the military.

Important caveat: Iranian authorities have dismissed the report as "fake news." The source is exclusively social media, and ForexLive itself stresses that the report should be treated with great caution. 24markets is currently unable to independently verify the resignation.

The resignation is a formal admission from Iran's elected head of state that civilian governance is subordinate to IRGC command — if it is real.

Nuclear negotiations take a severe hit

The timing is critical. The US and Iran had, according to ForexLive, been working toward a fragile framework over the past week — one that would extend a ceasefire, begin reopening the Strait of Hormuz, and initiate 60 days of structured negotiations on Iran's nuclear program and enriched uranium. The framework was already under strain: Trump is said to have tightened conditions on Sunday, and Iran's parliamentary security spokesman denied that any nuclear commitments had been made.

If the resignation is real, it raises a far more fundamental question than the terms of any deal: who actually has the mandate to enter into and honor an agreement on Iran's behalf?

IRGC: Military power — and financial

It is not only in the waters of the strait that the IRGC exerts control. Blockchain analyses indicate that IRGC-controlled addresses accounted for approximately 50 percent of Iran's total cryptocurrency ecosystem at the end of 2025, according to research material reviewed by 24markets. Funding directed toward IRGC-affiliated wallets exceeded three billion dollars in 2025.

The organization has built up a parallel financial infrastructure that is partly beyond the reach of traditional sanctions mechanisms — making it harder for Washington to apply pressure on the military that effectively controls the nuclear program and the Strait of Hormuz.

What happens to the oil market?

ForexLive describes the event as "an unambiguous oil price shock." The market's key question now is whether the IRGC will step into the diplomatic space Pezeshkian is vacating, or whether his possible resignation marks the end of that negotiating track entirely.

For as long as the answer remains unclear, any probability of a swift reopening of the Strait of Hormuz will price toward zero. Energy markets will read this as weeks — not days — added to the existing Hormuz timeline.

24markets is following the story

As the sourcing situation is currently limited to social media and unverified reports, we will be updating this story on a rolling basis. Iran's official denial is a significant caveat. The market reaction on the oil side reflects a risk premium — not confirmed political fact.