DUBAI, United Arab Emirates — Iran protests flared in Tehran and several other cities Tuesday after the rial sank to a record low and merchants shut their shops, adding pressure on President Masoud Pezeshkian’s government. Officials said they would open dialogue with protest leaders, casting the unrest as a reaction to soaring living costs and a currency slide worsened by years of sanctions, Dec. 30, 2025.
Iran protests widen as merchants and students join in
Shopkeepers around Tehran’s Grand Bazaar and nearby commercial districts were among the first to close businesses and gather in the streets, a tactic that can quickly ripple across the economy by halting trade. The Associated Press reported that police used tear gas in parts of the capital and that demonstrations and shop closures were also reported in Isfahan, Shiraz and Mashhad.
Footage shared online showed crowds chanting about prices and the currency, with some videos also capturing tense encounters with security forces. Al Jazeera reported that shopkeepers near major tech and mobile-phone shopping centers in Tehran’s Jomhouri area joined the Iran protests Sunday and returned to the streets Monday as riot police deployed tear gas to disperse demonstrators.
By Tuesday, the Iran protests had spread to campuses, adding a politically sensitive front to what began as merchant-led strikes. In a report on the government’s response, Reuters said hundreds of students protested at four universities in Tehran, joining bazaar merchants and trade unions. Pezeshkian wrote on social media that he had asked the interior minister to listen to protesters’ “legitimate demands,” while government spokesperson Fatemeh Mohajerani said a dialogue mechanism would be set up, with officials acknowledging that public anger stems from pressure on livelihoods.
Rial’s plunge and inflation squeeze households
The immediate trigger for the Iran protests has been the rapid fall in the open-market exchange rate, where many Iranians and import-dependent businesses seek hard currency. Private exchange platforms cited in international reporting put the dollar near 1.4 million rials Tuesday — a record low — after starting the year around 817,500 rials.
The depreciation has compounded inflationary pressure, pushing up the cost of food, medicine and other essentials. Iran’s state statistics center said annual inflation reached 42.2% in December, with food prices up 72% and health and medical items up 50% compared with a year earlier. State media also reported the resignation of Central Bank chief Mohammad Reza Farzin as the currency slide intensified, an upheaval that underscored the urgency of the crisis for officials and households alike.
Talks offered, but the path is unclear
The government has not said who it would recognize as protest representatives or what issues would be negotiable, leaving questions about whether dialogue can meaningfully address demands tied to wages, taxes and the exchange rate. Leaders have pointed to sanctions and what they describe as market manipulation as key drivers of the currency’s fall, while critics blame corruption and policy missteps for draining confidence.
Still, the outreach stands out after earlier Iran protests were met with heavy security responses and mass arrests. The Guardian called the unrest the largest wave of demonstrations in roughly three years and reported that officials publicly acknowledged the economic grievances fueling it — a notable shift in tone even as police remained visible around key commercial areas.
Older flashpoints echo in today’s Iran protests
Iran’s currency shocks and street mobilizations have often moved in tandem, with economic complaints sometimes tipping into broader political dissent. A Reuters report from 2023 documented the rial hitting record lows amid deepening international isolation, while a 2019 Reuters special report detailed how a fuel price hike helped ignite nationwide unrest that was later crushed by a sweeping security crackdown.
The most recent nationwide uprising before the current Iran protests followed the death of Mahsa Amini in morality police custody. A Reuters timeline from 2022 traced how demonstrations spread and how authorities responded with arrests and force — a backdrop that shapes public skepticism that economic talks alone can calm deeper anger.
For now, the Iran protests remain rooted in immediate economic pressure: a currency that no longer holds value, prices that outpace wages, and uncertainty over whether promised talks will produce tangible relief. Whether the government can stabilize the rial — or whether the unrest widens — may determine how long this surge lasts.
