Protests against the economic crisis continue in Iran. Social discontent is turning into open rebellion against the government. There are also rumors in the country that foreign intelligence services are involved.
For days now, thousands of people have been protesting against the dramatic fall in the value of the currency and the historic economic crisis. What began as a shopkeeper's strike is increasingly turning into political anger, with slogans like "Death to the dictator" being heard. The protests have long since spread from Tehran to cities like Isfahan, Mashhad and others. There have also been deaths.
Here's what you need to know about what's happening in Iran:
Is the current currency collapse an inflationary crisis?
For one US dollar, Iranians now have to pay around 1,45 million rials. A year ago, the exchange rate was around 820.000 rials. The average Iranian now receives barely more than $100 for a full month's salary. As a result, even buying basic groceries swallows up the entire salary.
In a country dependent on imports, such an inflationary shock immediately causes social instability. Human rights lawyer Gisu Niya of the Atlantic Council sees the cause in the economic downturn, but not the essence of the protests: "Similar to the protests of December 2017, there is often an economic trigger. But if you listen to the slogans and see the scale of the protests, it is about deep dissatisfaction with the regime and the desire for the regime to disappear." Many Iranians apparently no longer see the economic collapse as a temporary crisis, but as a systemic failure of the regime around the aging Supreme Leader Ali Khamenei.
How are these protests different from previous ones?
The protests of late 2025 are bringing together multiple waves of discontent. As in 2017 and 2019, they are about social rebellion, the experience of extreme violence (as in 2019), and cultural systemic criticism (as in 2022). This synthesis increases the reach and sustainability of the movement.
In an interview with Deutsche Welle (DW), Iran expert Gisa Niya points out the radicalism and continuity of the slogans: "You hear messages like 'Zan, Zendegi, Azadi' – meaning woman, life, freedom – in the spirit of the 2022 protests. You also hear 'Death to the dictator'. The regime must go."
Demands for reform have all but disappeared – the system itself has become a target. The movement relies on a shared repertoire that politically connects different generations.
What role does the bazaar play?
The bazaar has been the economic backbone and political pillar of the system's stability for decades. It is considered a political early warning system and a potential multiplier of protests. The Islamic Revolution of 1979 also began with strikes in the bazaar.
The strikes in the bazaar are affecting not only supply, but also the conservative backbone of the republic. Niya speaks of "the lifeblood of Iran's central markets. Shopkeepers and others have gathered to protest because the economic situation is unbearable."
How much room for maneuver does President Peseskian have?
Massoud Peseshkanian has little political space to meet the protesters. In a rare moment of openness, the president admitted: "If the problems are not resolved, we will not be able to govern." It is almost a political admission of impotence. The announced dismissal of the head of the Central Bank will be difficult for the people to calm down.
The draft budget for 2026 foresees a 62 percent tax increase, while inflation is 50 percent. On the street, this is seen as robbery. Public reactions show that Iranians no longer distinguish between "reformists" and "hardliners", but have lost confidence in the entire political elite.
How much does the crisis affect the population?
The economic crisis has long since become a social and infrastructural crisis. Savings have been devalued, food and medicine are scarcely available, and water and electricity shortages are becoming more frequent. It is no longer just marginalized groups that are affected, but also the broader urban middle class.
"The reality is that people can't afford food. They can't afford many things anymore," Gisu Nija analyzes in an interview with DW. Water has been regularly cut off in cities for some time. This makes political mobilization easier. Those who have nothing material to lose are more willing to accept the risk of state violence.
Why is the criticism focused on foreign policy?
For decades, the Islamic Republic has invested billions in its "Axis of Resistance," securing the loyalty of militias in Lebanon, Yemen, and Gaza. Protests are now explicitly turning against such regional interventionist policies—breaking an ideological taboo. Niya explains: "There is a rejection of the foreign policy of the Islamic Republic of Iran. The slogan: Neither Gaza nor Lebanon—my life for Iran."
The nationalization of protests shows that loyalty is no longer based on religion or transnational ideas, but on the welfare state. Every dollar that goes to Hezbollah or Hamas is seen as theft from one's own people.
How can the regime stop the protests?
The political leadership in Tehran is sending calming signals, while security forces have begun to violently suppress the protests. Unlike previous waves of protests, the regime is trying to intimidate the movement with violence in the early stages – indicating great nervousness. Gisu Niya says: "We are seeing videos of security forces using tear gas. We are also seeing shooting at peaceful protesters."
The regime is in a difficult situation: the earlier it uses violence, the more clearly it shows weakness. However, the usual repressive patterns no longer act as a deterrent, but rather confirm to many protesters that the regime cannot offer any political solutions.
What role do foreign intelligence services play?
The Iranian regime has previously attributed the protests to foreign agents. The United States and arch-enemy Israel, whose right to exist is denied by the Iranian authorities, have been the primary targets.
After the Israeli intelligence agency Mossad publicly called for support for the protests, Iranian state media and security agencies are once again spreading the narrative of "externally directed destabilization." But neither the speed nor the social breadth of the mobilization can realistically be controlled from the outside. For many Iranians, the appeal to "foreign conspiracies" is not an affirmation of strength, but an escape from reality by the leadership.
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