When the Progressive Circle soon became a political entity in the form of the Iran Novin (New Iran) Party in 1963, Hoveyda would be thrust into the national scene. Flanking Prime Minister Hassan Ali Mansour as his Finance Minister in 1964, the now well seasoned Hoveyda would make his mark by acting as the cabinet's intellectual centre.
Many observers, both within and without Iran, would take note of Hoveyda's prudent behaviour and shrewdness. To many, he embodied the archetypical statesman. Hoveyda's positive attributes would again be shrouded by scandal and gossip. During the early months of Mansour's premiership, the government was attacked for ratifying a bill which allowed foreigners extraterritorial rights. More specifically, those who benefited from the law were U.S. military personnel and their dependents.