Protests Erupt in Iran Amidst Rapid Economic Decline

Protests in Central Tehran

Multiple protests have erupted in central Tehran as merchants closed their shops in response to the rapid collapse of the national currency. Areas near two major technology and mobile phone shopping centers in the Jomhouri district witnessed demonstrations where traders shouted slogans. These incidents continued into Monday with increased participation from other citizens.

Videos circulated on social media show larger gatherings in that area and nearby neighborhoods, with demonstrators chanting, "Do not be afraid, we are together." A massive deployment of law enforcement was observed on the streets, and several videos revealed that tear gas was used to disperse the crowd.

Around the Grand Bazaar of Tehran, many shops were closed by owners, with some images showing merchants encouraging one another to do the same. State media also acknowledged the protests but quickly emphasized that merchants are concerned solely about economic conditions and are not challenging the theocratic stability established following the 1979 revolution.

Additionally, the national currency, the rial, hit a historic low of over 1.42 million per U.S. dollar before regaining some of its value. However, the economic issue extends beyond currency depreciation. Iran has faced a severe energy crisis for years, which periodically contributes to lethal air pollution, causing tens of thousands of deaths annually.

Most of the dams that supply Tehran and many major cities in Iran are at near drought levels, amid a water crisis. Furthermore, Iran has one of the most restricted internet accesses in the world. The continuous decline of purchasing power for the 90 million Iranians is exacerbated by pressure from the U.S., Israel, and European allies regarding Iran's nuclear program.

President Masoud Pezeshkian described the economic situation in grim terms while discussing a controversial budget that forecasts a 20% salary increase amid inflation hovering around 50%.