Iran gripped by fresh unrest as economic crisis sparks biggest protests in three years
The immediate trigger for unrest has been dramatic fall of Iranian rial, which has slipped beyond 42,000 against US dollar
PTC Web Desk: Iran is witnessing its most intense wave of street protests in three years as a collapsing economy, soaring inflation and public anger against clerical rule spill onto the streets of major cities. Over the past two days, demonstrations have erupted across Tehran, Mashhad, Isfahan, Shiraz and several other towns, exposing deep cracks within the Islamic Republic led by Supreme Leader Ayatollah Ali Khamenei.
Rial crash and inflation fuel public anger
The immediate trigger for the unrest has been the dramatic fall of the Iranian rial, which has slipped beyond 42,000 against the US dollar. Inflation has crossed 42%, sharply eroding purchasing power and making essentials such as food, medicine and fuel unaffordable for millions. Small traders, shopkeepers and mobile phone vendors have been among the first to take to the streets, hit hard by the currency’s free fall.
The economic shock has already claimed a senior casualty, with Central Bank chief Mohammad Reza Farzin resigning amid mounting pressure.
Anti-regime slogans echo on the streets
Videos circulating on social media show crowds chanting slogans that go far beyond economic demands. Protesters have been heard shouting “Mullahs must leave Iran” and “death to the dictatorship”, signalling open defiance of the theocratic system. Iranian-American journalist and activist Masih Alinejad said the chants reflect a growing rejection of the Islamic Republic itself.
In central Tehran, a symbolic image has drawn global attention: a lone man sitting calmly in the middle of a highway as security forces on motorcycles move in to disperse demonstrators. Iran watchers have compared the scene to the iconic “Tank Man” image from China’s 1989 Tiananmen Square crackdown.
Clashes with security forces
On December 29, clashes were reported in Tehran and Mashhad as security personnel used batons and tear gas to break up protests. The Grand Bazaar area in Tehran emerged as a key flashpoint, with demonstrators chanting slogans of unity and openly taunting security forces. Iranian news agency Fars acknowledged that some slogans raised had crossed from economic grievances into political dissent.
Echoes of past protests
The current unrest revives memories of the nationwide protests in 2022–23 following the death of Mahsa Amini in the custody of Iran’s morality police. That movement shook the regime and drew international condemnation for its violent suppression. While the immediate spark today is economic, analysts say the anger has been building for years, combining financial distress with fatigue over clerical rule.
Role of sanctions and US pressure
Iran’s economic troubles are deeply linked to international sanctions, especially after the US withdrew from the 2015 nuclear deal under Donald Trump. His “maximum pressure” policy severely restricted Iran’s oil revenues and access to global markets. Renewed tensions following the Iran-Israel conflict, along with fresh US warnings and sanctions threats, have further unsettled markets.
Former US Secretary of State Mike Pompeo blamed Iran’s leadership for the crisis, saying the regime’s corruption and extremism had destroyed what could have been a prosperous nation.
Regime downplays protests
Iranian state media have acknowledged the demonstrations but sought to minimise their political significance. Government-run IRNA portrayed the protests as limited and economically motivated, particularly among mobile phone traders affected by the rial’s depreciation.
However, experts warn that without sanctions relief or major economic reforms, inflation and unrest are likely to persist. For many Iranians, daily life has become a struggle of survival, and the streets are now reflecting that desperation.