Hi I hope I have it right that you are Pam and Ivan the Terrible is the poorly chappie!
Don't panic. Stage 1 kidney failure is really very mild and hyperthyroidism usually takes priority over it, as it seems your vet is doing. Without wishing to be too blunt, unless his kidney condition was to progress at great speed from here (which is unusual but not impossible) at 18 years old something else would be likely to get him first.
Untreated hyperthyroidism raises blood pressure and paradoxically this can mask underlying renal failure. Hence it's very common for successfully controlled hyperthyroid cats to suddenly show up with some decrease in kidney function. It could almost be seen as a sign of the success of the y/d diet that this is happening now.
My limited experience of both conditions is my Molly who was diagnosed hyperthyroid aged 11 in November 2018 and was treated by radioiodine the following April. She showed up stage 1 too. In between diagnosis and treatment hers was also controlled with y/d, very successfully. The difference is that because it was short term and against all advice I continued to give her treats of real meat. I did my own extensive reading research and made that decision, it's absolutely not recommended, but the diet still worked for her in spite of it. After her treatment I chose not to put her on the renal diet but to focus on higher protein food to help her rebuild muscle. We are keeping an eye on her levels and continue to make decisions based on her age, quality of life and balancing opposite needs.
I always recommend this website
http://www.felinecrf.org/index.htm which if you scroll a long way down the left hand side menu has a section specifically on hyperthyroidism and CRF together. The rest of it is a really valuable resource too, practical, factual and realistic but also supportive and reassuring.