President Hassan Rouhani has used the unveiling of Iran’s first domestic jet fighter to strike a defiant pose over economic problems and US sanctions.

Speaking on the eve of National Defense Industry Day, Rouhani declared:

We should make ourselves ready to fight against the military powers who want to take over our territory and our resources….

History tells us that if we fail to be powerful and stand firm on our objectives, there are others who will bring us to our knees. Enemies have over the past 40 years spread Iranophobia and sought to make people believe that Iran poses a threat to their existence, survival and dignity.

The President has been under pressure from Iran’s hardliners as the country struggles with issues of production, trade, investment, a troubled banking and finance sector, environmental damage, and a currency which has fallen 60% in value since January.

Threatened with the removal of his government — including by the Supreme Leader’s office — Rouhani bought himself some time last month by adopting a more confrontational tone with the US, following Donald Trump’s withdrawal from the 2015 nuclear deal and order for comprehensive US sanctions on Tehran.

But amid the currency crisis, the challenge to Rouhani has been resurging, with Parliament removing the Labor Minister earlier this month, hardliners seeking the President’s appearance before the Majlis to answer questions, and a Revolutionary Guards-backed demonstration by seminary students in the holy city of Qom.

The President cloaked himself in military prowess as he said Iran must “prepare itself against people and powers, which have greedily set their sights on the country’s territory, resources and sensitive geographical position”:

Why does the US not attack us? Because it is aware of our power and the cost.

Rouhani did try to link the tough rhetoric to his older line of engagement in foreign policy, maintaining that his exaltation of military power would lead to “sustainable peace”.