Iran's parliament declared its dissatisfaction with President Hassan Rouhani on Tuesday, voting to reject his answers after grilling him over the deteriorating economy.

It was the first time Rouhani had been summoned by parliament in his five years in power, and MPs demanded answers on unemployment, rising prices and the sharp depreciation of the rial, which has lost more than half of its value since April.

The lawmakers, who have already impeached his labour and economy ministers this month, were unimpressed.

In votes at the end of the session, they expressed dissatisfaction with Rouhani's responses to four of their five questions on the economy, which will now be referred to the judiciary for review.

Rouhani trod a difficult line, seeking to acknowledge the problems facing ordinary Iranians without admitting to a full-blown crisis.

"It should not be said we are facing a crisis. There is no crisis. If we say there is, it will become a problem for society and then a threat," he told parliament.

As usual, Rouhani offered no concrete policy proposals, instead saying the answer lay in showing a united front.

"You may talk about employment, foreign currency, recession, smuggling... I think the problem is in people's view of the future," he said.

"The people are not afraid of the United States, they are afraid of our disagreements. If the people see we are united, they will realise the problems will be resolved."

But Rouhani's government -- which pushed a "moderate" line of improved relations with the West -- has been badly weakened by Washington's decision in May to withdraw from a landmark 2015 nuclear deal between Iran and major powers and reimpose sanctions.

Most foreign firms have abandoned investment projects in Iran, and the next phase of renewed US sanctions in November will hit the crucial oil sector.

'Palace of wishes' 

Rouhani sought to shift the blame to the administration of US President Donald Trump, saying: "We will not allow a bunch of anti-Iranians who have gathered in the White House to conspire against us."

But most Iranians blame their own government for failing to capitalize on the nuclear deal while it had the chance, and for raising people's expectations without delivering results.

"You created a palace of wishes called the JCPOA," said Mojtaba Zolnour, an MP for the shrine city of Qom, using the technical name for the nuclear deal.
"With one kick from Trump, this palace was demolished, and you didn't have an alternative," he said.

Despite the impeachment of two of his ministers, Rouhani himself is protected by supreme leader Ayatollah Ali Khamenei, who said recently that removing the president would "play into the hands of the enemy".

That may explain the soft line taken by several speakers, with one conservative MP, Hossein Naghavi-Hosseini, emphasizing, "We will stand by your government for the sake of protecting the system of the Islamic republic."

But when it came to the votes, lawmakers accepted only one of Rouhani's answers related to international banking sanctions, which they agreed were beyond his government's control.

Even after the nuclear deal, major foreign banks continued to refuse to work with Iran, fearing the lack of transparency in its financial sector could lead them into legal trouble.

Rouhani has even lost support among reformists who had supported him as the best option after their own leaders were either locked up or barred from standing for office.

"What have we done with this nation? We made them miserable and wretched," said leading reformist MP Elias Hazrati as he voted in favour of impeaching economy minister Masoud Karbasian on Sunday.