Massive Protests Erupt in Iran Over Economic Hardship

What is Happening in Iran?

Protests in Iran, ignited by dire economic conditions, gained momentum after December 28, 2025, when the national currency, the rial, plummeted to a historic low against the US dollar. These demonstrations began in Tehran's Grand Bazaar, where merchants closed their shops and took to the streets, later spreading to other provinces.

Causes of the Protests

The dramatic decline of the rial—reaching over 1.4 million to 1 dollar—has led to skyrocketing inflation, with food prices increasing by 72% compared to last year, and the annual inflation rate approaching 40%. Additionally, Iran has faced significant economic damages due to a 12-day war with Israel in June 2025 and the reimposition of international sanctions related to its nuclear program.

Demands for Change Emerge

From the initial protests, the demands have shifted from requests for improved economic conditions to challenging the clerical regime itself. Supporters of Reza Pahlavi, son of the former Shah, are calling for the monarchy's return, while he proposes a referendum to determine the country's future. The current protests are also influenced by the tragic precedent of Mahsa Amini, who died in police custody in 2022, triggering widespread discontent with the Islamic regime.

Consequences of the Violence

More than 100 security forces members have been killed during these protests, while opposition activists claim that the actual death toll is much higher. A reported internet blackout lasting four days complicates the ability to assess the real situation. Iran is preparing to restore internet services, but authorities blame external forces for inciting the violence.

What Comes Next?

Experts anticipate an escalation of discontent given the brutal crackdown and the persistent demands of the protesters. According to one specialist, even if this round of protests is suppressed, new ones could emerge rapidly until there is a radical change in the power structure in Iran.