Protests have erupted throughout Iran, driven by widespread discontent over the country's deteriorating economic situation. Demonstrators have taken to the streets in various cities, including Tehran, where significant participation has been noted among merchants, students, and the general populace. The Iranian rial has plummeted in value, trading at approximately 1.4 million to the U.S. dollar, a stark decline from around 800,000 a year prior, contributing to inflation rates reported at 52.6% year-on-year as of December 2025.

The protests, which began on December 29, 2025, have seen participants chanting anti-government slogans and calling for the resignation of ruling clerics. Video footage shared on social media depicts crowds demanding freedom and expressing solidarity among demonstrators. The bazaari class, historically influential in Iranian society, has played a prominent role in these protests, signaling a potential shift in public sentiment against the Islamic Republic's governance.

In addition to economic grievances, demonstrators have highlighted severe shortages of essential resources, including water and energy, exacerbating the hardships faced by the population. The rising cost of living has led to food prices surging by as much as 72%, further straining household budgets. The protests have drawn comparisons to historical acts of defiance against oppressive regimes, reflecting a growing frustration among various social classes, including middle-class citizens and students.

The Iranian government, led by President Masoud Pezeshkian, has acknowledged the protests and called for dialogue to address the legitimate demands of the demonstrators. However, the regime's history of suppressing dissent raises questions about the potential for meaningful change. Security forces have responded to the unrest with tear gas and other measures to disperse crowds, indicating the government's readiness to maintain order amid escalating tensions.

The current unrest is compounded by external pressures, including U.S. sanctions and threats of military action from Israel, which have further destabilized the Iranian economy. Political analysts have noted that the dollarization of the Iranian economy has intensified these challenges, leading to increased uncertainty for merchants and consumers alike. As the situation evolves, the interplay between economic hardship, social unrest, and state power remains a critical concern for the future of Iran.