Unrest in Iran: Economic Crisis Fuels Nationwide Protests

The recent protests in Iran were ignited by a historic collapse of the Iranian rial, which fell to 1.4 million rials per American dollar on December 28, 2025. This economic crisis, exacerbated by chronic mismanagement and years of Western sanctions, led to widespread demonstrations beginning with a peaceful sit-in at Tehran’s Grand Bazaar. The protests quickly escalated, drawing participants from various sectors, including merchants, students, and anti-regime activists, demanding not only economic stability but also political freedom. The Iranian Revolutionary Guard Corps (IRGC) responded with violence, employing tactics such as arrests and intimidation to suppress dissent.

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Since the Iranian government imposed an internet blackout on January 8, 2026, many Iranians abroad have struggled to communicate with their families. Maya, a graduate student in the UK, and Daniel, a support worker from Sine, have not heard from their relatives in Iran for days, heightening their anxiety. Reports indicate that families are facing dire conditions, with some unable to afford basic necessities. The emotional toll of uncertainty weighs heavily on those in the diaspora, as they grapple with the fear of losing loved ones amid the unrest.

Supreme Leader Ali Khamenei acknowledged that “several thousand” lives have been lost during the protests, attributing the unrest to external influences from the United States and Israel. While the government has promised to address economic grievances, it has also labeled the protests as hijacked by “terrorists” trained by foreign powers. This narrative has been met with skepticism by many, who view the protests as a legitimate expression of public discontent rather than a foreign conspiracy.

The protests have also seen the emergence of monarchist sentiments, particularly the call for the return of Reza Pahlavi, the son of Iran’s last shah. However, this has been met with criticism from various factions within the movement, who argue that such calls distract from the genuine economic and political issues at hand. Many activists are wary of a return to monarchy, fearing it could lead to a weakened political state vulnerable to external influences, reminiscent of historical events such as the 1953 coup against Prime Minister Mohammad Mossadegh.

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Despite the ongoing turmoil, the future of Iran remains uncertain. Even if the current regime falls, the underlying economic challenges are likely to persist, complicating any potential transition. Maya likened the unrest to a fever that, regardless of its outcome, will leave lasting scars on the nation. As the situation evolves, the Iranian diaspora continues to seek ways to support their homeland while navigating the complexities of their own emotional and political landscapes.

• “I believe it’s not like before … because the economy’s collapsed,” — Maya, Graduate Student

• “exactly like hell” — Azam Jangravi, Activist

• “Tell everybody I love them,” — Azam Jangravi, Activist

The ongoing protests in Iran reflect a critical juncture in the nation's history, where economic despair has catalyzed a broader demand for change, leaving both citizens at home and the diaspora in a state of uncertainty and hope for a better future.

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