Pressure is geowing on Iran's embattled President Mahmoud Ahmadi-nejad-and not just from reformists and street protesters. He recently clashed with Supreme Leader Ali Khamenei, when Khamenei told the president to ditch his right-hand man, whom right-wingers see as too friendly toward Israel. The president complied, but only after a long delay that infuriated conservatives. This rift may have startled observers, but tensions between the two have been mounting for some time. The real point of discord is Iran's economy, which Ahmadinejad has wildly mismanaged, producing double-digit inflation, soaring unemployment, and regular blackouts. Khamenei rarely criticizes the president publicly, but has been quietlyacting to reduce his powers. In January, the Supreme Leader created a new fund that starting next year will safeguard some 20 percent of Iran's oil and gas revenue from the president's meddling. No wonder: according to the RAND Corporation, the president has long diverted oil revenue to his Revolutionary Guard allies, who've used them to start companies, now some of Iran's largest-and most inefficient. In the weeks to come, if volatile oil prices and wary foreign investors continue to depress the economy, the fault lines will only grow deeper.
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