Image Source: CNN
On December 29, 2025, significant protests erupted across Iran in response to the country’s currency crisis, which has seen the Iranian rial plunge to record lows against the US dollar. Citizens, traders, and shopkeepers took to the streets demanding accountability and change as the economic situation worsened, backed by the resignation of the head of the Central Bank, Mohammad Reza Farzin.
Massive Protests Ignite in Major Cities
The protests began in downtown Tehran and quickly spread to other major cities including Isfahan, Shiraz, and Mashhad. Witnesses reported gatherings of traders and shopkeepers in Saadi Street and near Tehran’s Grand Bazaar, reminiscent of the critical role the merchant class played during the 1979 Islamic Revolution. The unrest marks the largest demonstrations seen in Iran since 2022, when widespread protests followed the tragic death of 22-year-old Mahsa Jina Amini in police custody.
- Protesters expressed their grievances over rising living costs and the depreciation of the rial.
- Many shops remained closed as merchants supported the demonstrations.
- Police responded to some protests with tear gas, aiming to disperse large crowds.
Economic Crisis Deepens Amid Rising Inflation
The backdrop of these protests is a dire economic situation. As the rial recently fell to an alarming $1.42 million to $1 USD, inflation is also spiraling out of control, with official statistics revealing a current rate of 42.2%. Prices for essential goods, including food, have skyrocketed, showing an annual increase of 72%, while health and medical items have risen by 50% over the past year. Many fear this fast-paced inflation trend could lead to hyperinflation, burdening Iranian families already struggling to make ends meet.
The Resignation of the Central Bank Chief
Farzin’s resignation was reportedly influenced by the dramatic economic shifts and growing discontent among the populace. He assumed his role in 2022 when the rial was valued at roughly 430,000 to the dollar. His departure signals a lack of confidence in the government’s ability to manage the crippling economic issues effectively.
Amidst these protests, the Iranian government is also facing scrutiny for its intentions to raise taxes in the new Iranian year starting March 21, 2026, further aggravating public frustration. Citizens are alarmed by the rapid economic decline and the perceived neglect from their leaders. Reports of the government’s plans to tackle the economic fallout have not reassured the public, and traders reportedly halted commerce to join the demonstrations.
Looking Forward: Uncertainty Prevails
The protests are taking place amidst the looming risk of renewed conflict in the region, especially following the Israeli-Iranian war earlier this year. As international sanctions reimposed by the United Nations limit Iran’s economic capabilities, many fear that the ongoing turmoil could evolve into a broader crisis involving foreign intervention.
As Iran grapples with this multifaceted crisis, public sentiment reflects the urgency for significant change and accountability from the government. The outcome of these protests may reshape the political and economic landscape of the country, bringing further complexities amidst already strained relations both domestically and internationally.
Frequently Asked Questions
What caused the recent protests in Iran?
The protests were sparked by the dramatic depreciation of the Iranian rial and rising inflation, coupled with the resignation of the Central Bank chief.
How did the government respond to the protests?
The government has used tear gas against protesters in some areas while facing widespread criticism for its economic management.
What are the economic conditions in Iran currently?
Iran is experiencing high inflation rates, a devalued currency, and increasing prices for essential goods, causing significant economic strain on citizens.
What role did the Central Bank chief play in the crisis?
The Central Bank chief’s resignation has been seen as a reflection of the government’s inability to control the worsening economic situation.
What implications do these protests have for Iran’s future?
The protests indicate a growing discontent that could influence Iran’s political landscape and lead to calls for reforms and change in leadership.
