18:33 10-01-2026

Iran Protests Explode as Economic Crisis Spirals Out of Control

Mass protests sweep Iran after currency collapse and soaring inflation, spreading nationwide and drawing threats and support from the US and Israel.

Protests in Iran, which began in late December, are unfolding against the backdrop of a severe economic crisis. According to RBC, annual inflation reached 42.2 percent by the end of the year, while the national currency, the Iranian rial, collapsed to a record low of around 1.42 million rials per US dollar.

In November, President Masoud Pezeshkian signed a decree on currency redenomination, under which 10,000 current rials will be converted into one new rial over a three-year transition period. In December, the government also raised prices for state-subsidized gasoline, introducing a progressive pricing scale in an effort to curb overconsumption and fuel smuggling.

The first protests erupted near two major markets in central Tehran shortly after the rial’s sharp devaluation. Small traders closed their shops and took to the streets to protest the currency collapse and rising prices, with other residents of the capital soon joining them. Initially, the demands focused on economic support, currency stabilization, and price reductions. Within days, however, the slogans grew more radical and turned against the Islamic Republic as a whole and its Supreme Leader Ali Khamenei personally. Police dispersed protesters using batons and tear gas, and reports later emerged that firearms had also been used.

The unrest quickly spread beyond Tehran. Demonstrations were recorded in dozens of cities, including Mashhad, Shiraz, Isfahan, Kermanshah, and Yazd. In the city of Fasa in southern Iran, protesters attempted to storm administrative buildings and set nearby vehicles on fire, prompting police to open fire in response.

On January 6, the National Council of Resistance of Iran claimed that protesters had taken control of the cities of Abdanan and Malekshahi in Ilam Province. Iranian state media rejected these claims, insisting that law enforcement remained in control without using weapons.

According to an assessment by the Institute for the Study of War dated January 8, protest activity surged dramatically, with demonstrations taking place in at least 156 locations across 27 provinces — twice as many as the previous day. The United Nations reported that 20 people, including three children, were killed during the first week of protests, while hundreds of individuals, including minors, were arrested.

Ali Khamenei blamed foreign enemies for the unrest, drawing a distinction between protests and riots and signaling that violent actions would be met with force. President Pezeshkian, meanwhile, urged police to avoid violence, show restraint, and prioritize dialogue with society.

Senior researcher at the Institute of Oriental Studies of the Russian Academy of Sciences Vladimir Sazhin cautioned against drawing premature conclusions, recalling the protests of 2022–2023, which lasted around six months and ended with a brutal crackdown and severe consequences. He noted that while those protests were initially ideological, the current unrest began among small and medium-sized businesses, particularly the bazari — a group that played a decisive economic role during the 1979 revolution.

Elena Suponina, an expert with the Russian International Affairs Council, said the primarily economic nature of the protests gives authorities some room to maneuver, though resolving core problems under sanctions remains extremely difficult. She also emphasized the absence of a strong domestic political opposition, which may allow the government to regain control.

The protests have drawn active reactions from the United States and Israel. US President Donald Trump repeatedly warned Tehran that harsh suppression could trigger American intervention and voiced readiness to support protesters. Israel’s Foreign Ministry issued statements in Persian accusing Iranian authorities of destroying the economy and funding militant groups, while Israel’s intelligence service Mossad publicly expressed support for the protesters.

Iranian authorities responded by accusing the United States and Israel of orchestrating the unrest and made clear that no compromise with protesters would be pursued.

Amid the unrest, media attention has increasingly focused on Reza Pahlavi, the son of the shah overthrown in 1979. In a column published by The Washington Post, he welcomed Trump’s support for protesters and positioned himself as a unifying figure capable of guiding Iran toward a democratic transition. Pahlavi has urged Iranians to continue demonstrations and has repeatedly called on the United States to intervene more actively.

The largest protests took place on January 8 and 9, after which authorities imposed a complete internet shutdown. Pahlavi called for expanding the protests to overwhelm security forces. Analysts note, however, that monarchist sentiment inside Iran remains limited, and that the regime retains powerful coercive tools. At the same time, experts point to an unprecedented level of external pressure, particularly from the United States, which could significantly complicate the regime’s position if translated into direct action.