Iran Faces Unprecedented Protests Amid Economic Crisis

The recent protests in Iran, which have escalated into the largest demonstrations since the 2022 “Woman, Life, Freedom” uprising, are rooted in a combination of deteriorating economic conditions and deep-seated public anger against the Islamic Republic. The immediate catalyst was a budget bill rejected by parliament that proposed eliminating the preferential exchange rate of 285,000 rials to the U.S. dollar, a mechanism perceived as corrupt and beneficial primarily to regime-connected networks. As the Iranian rial plummeted to around 1.39 million per dollar, fears of inflation and rising prices for basic goods fueled public outrage.

Foreign Policy

Beginning in late December 2025, protests erupted across all 31 provinces of Iran, with significant demonstrations reported in 348 towns and cities. The unrest has been characterized by strikes, particularly among bazaar merchants, who play a crucial role in the economy. The protests have been marked by slogans against the regime, including calls for the return of the Pahlavi monarchy. Eyewitness accounts describe scenes of defiance, such as protesters pulling down a statue of Qasem Soleimani, a prominent figure in the Revolutionary Guards.

Daily Mail

Iranian President Masoud Pezeshkian called for "utmost restraint" in handling the demonstrations, urging against violent or coercive behavior. In contrast, Supreme Leader Ayatollah Ali Khamenei labeled protesters as "vandals" and "saboteurs," vowing not to back down from a crackdown. The judiciary has signaled a readiness for harsher measures against those labeled as "rioters," with Judiciary Chief Gholamhossein Mohseni Ejei emphasizing "no leniency" in prosecutions.

Daily Mail

The opposition to the regime remains divided, with factions supporting the return of the Pahlavi monarchy clashing with those opposing perceived monopolization of power. Analysts note that the lack of unity and coordination among opposition groups hampers their effectiveness. Many protesters express a desire for a clean break from the current regime rather than a mere change in leadership.

Foreign Policy

Reports of violence during the protests vary significantly. The Norway-based NGO Iran Human Rights claims that at least 45 people, including children, have been killed since the protests began, while Iranian state media reports a lower death toll. The regime's security forces have been accused of using excessive force, including targeting hospitals to detain wounded protesters.

Daily Mail

As the protests continue, the potential for regime collapse is a topic of debate among analysts. Some suggest that the regime's ability to suppress dissent through repression is reaching its limits, while others caution that the opposition's fragmentation could prevent meaningful change. U.S. President Donald Trump has threatened severe action against Iran if the regime escalates its crackdown on protesters, raising concerns about international involvement in the unrest.

Foreign Policy

The situation remains fluid, with ongoing demonstrations and strikes indicating a growing discontent among the Iranian populace. The outcome of these protests will depend on various factors, including the regime's response, the unity of the opposition, and the international community's stance.

Daily Mail