TEHRAN >> The increasingly bitter feud between Iran’s president and hard-line commanders and clerics exploded into the open over the weekend with the arrest of a top environmental official and the prison death of a prominent Iranian-Canadian environmental activist who was arrested in January.

The official, Kaveh Madani, the deputy head of the Department of the Environment, was arrested Saturday, interrogated, and apparently released today by intelligence agents affiliated with the Iranian Revolutionary Guards Corps. His department posted an image of him on Twitter during a meeting today with the German ambassador to Iran, Michael Klor-Berchtold.

The arrest of Madani, 36, an American-educated academic on leave from London’s Imperial College, was particularly embarrassing for President Hassan Rouhani, who had recruited him as a sign the country is ready to welcome back expatriate Iranians.

It was consistent with a series of actions taken by hard-line groups in recent months to publicly humiliate and undermine Rouhani, analysts say. They are accused of instigating the protests that shook the government around the New Year in an effort to show that Rouhani’s promises of economic growth were failing. That backfired when the protests spread to 80 cities and anger quickly turned against the Islamic establishment.

The hard-liners had been incensed by Rouhani’s decision to leak a sensitive government budget document showing generous payouts to support military adventures and conservative clerical organizations while cutting subsidies for the poor and middle class.

“I have never seen the fight between these two factions so open here in Iran, the government versus those who are nonelected,” said Farshad Ghorbanpour, an analyst with close ties to the Rouhani government. “I’m afraid that if solutions are not found, we might see escalation and even clashes in the near future.”

The sparring is taking place against a backdrop of growing public dissatisfaction with the government over the mismanagement of the economy, corruption, bank failures and the powerful sense that people no longer want the government to tell them how to live — symbolized this month by numerous women publicly removing their hijabs to protest mandatory veiling.

With the arrests of Madani and several environmental activists including Kavous Seyed Emami, the Iranian-Canadian, the fight seems to have expanded into the environmental arena as the government confronts growing fears of water shortages this summer. The activists, some critical of the government for long-term mismanagement of water supplies, have been accused by the Revolutionary Guards of spying.

Seyed Emami, one of the founders of the Persian Wildlife Heritage Foundation, Iran’s most prominent nongovernmental organization focused on the environment, was quietly arrested along with six associates in January, a spokesman for the family said Saturday.

The spokesman said that the family had been told that he killed himself in prison after having confessed to spying. The family denies the allegation of spying and doubts he killed himself, but prison officials so far have refused to return Seyed Emami’s body to the family for a proper autopsy. He was to be buried Tuesday, and it remained unclear if the family’s wish for an independent autopsy would be granted.

Also unclear is where the country’s supreme leader, Ayatollah Ali Khamenei, comes down in the feud between the hard-liners and Rouhani. Ayatollah Khamenei has long sought to balance opposing factions to preserve his power, and analysts said he would be unlikely to take a strong stand on one side or the other until he felt he had no choice. On major decisions, such as the nuclear agreement and seeking better relations with the international community, he has supported Rouhani, if grudgingly.

On Sunday, Rouhani struck back at his opponents, warning the Revolutionary Guards, the judiciary and the clerical councils that his government is considering organizing a referendum to break the deadlock between those who want change and those who want to hold it back.

“Anywhere we may have differences,” he said in a speech at the 39th anniversary of the Islamic Revolution, “we should refer to the vote of the people and a referendum.”

While there is little chance of that plan succeeding, analysts say, suggesting a referendum could perhaps help Rouhani regain popularity among the middle classes who have become cynical over his inability to deliver on years of promises of a more open and transparent economy and greater personal freedoms.

“Mr. Rouhani insists on diverting attention away from his failing economic policies,” said Hamidreza Taraghi, a hard-line political analyst. “The government is not allowed to initiate referendums on everything, only in the case of a stalemate between separate powers. These are just disputes.”

Since the New Year’s protests, the pressure on the two sides has only increased, with the economy dragging and the national currency, the rial, falling sharply in value against the dollar and the euro. The government is having trouble attracting desperately needed foreign investment, because of unilateral United States sanctions and uncertainty over the fate of the nuclear agreement.

In an apparent victory for Rouhani, the minister of defense, Amir Hatami, said in January that Ayatollah Khamenei had ordered both the regular army and the Revolutionary Guards to sell off economic assets to the private sector. But the arrests and pressures indicate there will be no smooth transition, if any, analysts said.

“This country is in deadlock. I think last month’s so-called-protests were incited and encouraged by government opponents, including the Islamic Revolutionary Guards Corps,” said Saeed Laylaz, an economist close to the government. “I think the opponents of Rouhani want to show their teeth after the president has made clear he wants to harness the power and influence of the nonelected parts of the state, including the Guards.”

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