The streets of Tehran and several other major Iranian cities have become the epicenter of an explosion of social discontent against the high cost of living and hyperinflationWhat began as a closure of shops in the capital's main mobile phone market has, in just three days, turned into a protest movement involving shopkeepers, students and other sectors of the population.
In a country that has been subjected for years to severe international sanctions and a currency in freefallThe loss of purchasing power has driven thousands of people to take to the streets. The demonstrations, described as spontaneous, have forced the Iranian government to react with a mix of overtures, warnings, and increased security measures.
Merchants and students, the driving force behind an expanding movement
The immediate origin of the protests lies in Tehran's largest mobile phone marketwhere numerous shopkeepers decided to close their doors on Sunday as a sign of protest against the economic situation. The following day, the shop closures and marches spread to other commercial areas of the capital, shaping a the biggest wave of economic protests since 2022.
On the third day, the movement took a qualitative leap: Students from at least ten universities across the country joined the protestsAmong the campuses involved are centers considered among the most prestigious in Iran, such as the universities of Tehran, Beheshti, Sharif, Amir Kabir, Science and Culture and Science and Technology, as well as the Isfahan University of Technology and other centers in cities such as Yazd, Zanyan and Isfahan.
These academic campuses have registered rallies, internal marches, slogans against economic decline and even slogans directed at the highest authorities in the country. The convergence of merchants and students, two groups with great symbolic and historical weight in Iranian politics, has led to The protests resonate particularly strongly both inside and outside of Iran.also in European public opinion.
Some testimonies disseminated by Iranian media indicate that The participants denounce the lack of political support and the absence of real solutions.A shopkeeper quoted by the newspaper Etemad lamented that no official had shown any concern about how the dollar exchange rate was affecting their lives, stating that they had been forced to protest to make their discontent heard.
The protests, for the moment, are concentrated mainly in commercial and university areas in downtown TehranAlthough protests have also been reported in other major cities. On many streets, the scene is one of apparent commercial normality in the morning, with shops open, while tension is concentrated in certain areas monitored by riot police.
Government response: calls for dialogue and increased security
Faced with the magnitude of the discontent, the Iranian president, Massoud Pezeshkian, has opted to a speech that combines acknowledgment of grievances and promises of economic reformThrough the social network X, the president stated that he had asked the Interior Minister to listen to the "legitimate demands" of the protesters and to open channels of dialogue with their representatives.
The president emphasized that Providing sustenance for the population is their main daily concern He also announced plans to implement "fundamental measures" to reform the monetary and banking system. The government's stated priority, in its own words, is to preserve citizens' purchasing power and contain the financial volatility that erodes wages and savings.
In parallel, the authorities have deployed Law enforcement and riot control units on the main arteries of Tehran and in the vicinity of several universities. Images released by official and international media show officers in the busiest squares and visible checkpoints at some campus entrances.
In certain areas, the security forces have resorted to use of tear gas to disperse crowdsAccording to recordings published by the state news agency Fars, the balance between the message of openness and police pressure is fragile: while the government insists on its willingness to listen, the protesters denounce a climate of intimidation on the street.
The Speaker of Parliament, Mohamad Bagher Ghalibaf, has publicly endorsed the need to adopt “measures necessary to increase the purchasing power of the population”However, he also warned about the risk of the protests being exploited to generate "chaos," a message that fits with the usual discourse of the Iranian authorities, who often attribute internal unrest to the interference of foreign powers.
Runaway inflation and a currency in freefall
The background to the protests is a deep and prolonged economic crisisThe Islamic Republic has been experiencing a sharp rise in the price of basic goods for years, but in recent months the situation has deteriorated particularly rapidly. Iranian official bodies estimate that around 50-52% year-on-year increase in prices in December, with even greater increases in food and essential goods.
The figures vary depending on the source, but several reports indicate that Food prices have risen well above average and that healthcare and pharmaceutical products have also become significantly more expensive. The perception on the street is one of de facto hyperinflation, in which Prices may vary from day to daycomplicating any domestic or business planning.
At the heart of the problem is the trajectory of The Iranian rial, which has hit successive historic lows against the dollar and the euro.In the unofficial market, the local currency has traded at over 1,4 million rials per dollar and around 1,7 million per euro, well above the rates of a year ago. This collapse has suddenly increased the price of imported goods and fueled the inflationary spiral.
The volatility is such that Many merchants have chosen to temporarily suspend their transactionsAwaiting greater clarity on the exchange rate, sellers and buyers are hesitant to close deals in a context where potential losses could be very high in just 24 hours, which in turn paralyzes part of the internal economic activity.
The combination of stagnant wages, loss of savings value, and relentless price increases has pushed families and small businesses to the brink. Numerous protesters insist that The priority is no longer improving their quality of life, but simply making ends meet.This is a reality that also resonates in European political and economic debates when analyzing the stability of the region.
International sanctions, nuclear program and regional context
The current crisis cannot be understood without the framework of Decades of Western sanctions and geopolitical tensionsThe Iranian economy has been subject to almost permanent financial and trade restrictions, which have been tightened or eased depending on the evolution of Tehran's nuclear program and its relations with the United States and the European Union.
In recent months, the situation has become complicated again with the reinstatement by the United Nations of certain penalties linked to the Iranian nuclear programThese measures, which had been lifted a decade earlier, are in addition to those already imposed by Western powers and further isolate the country from international markets.
Furthermore, the lack of progress in the nuclear negotiations with the United States and other powersThis, along with regional tensions marked by cross-threats between Iran and Israel, has generated a significant psychological effect on local markets. Uncertainty about potential conflicts or new rounds of sanctions is fueling the situation. the flight to hard currency and distrust in the national currency.
The Iranian government attributes a significant part of the situation to this external context, insisting that Sanctions and international pressure are suffocating the economyHowever, critical voices inside and outside the country also point to internal mismanagement, corruption, lack of transparency, and dependence on networks of regional intermediaries that drain resources.
For the EU and for European countries with the closest diplomatic ties to Iran, these protests reignite the debate on the balance between political pressure and opening channels of dialogueOn the one hand, Brussels maintains sanctions for the nuclear program and for human rights violations; on the other, there is concern about the humanitarian impact and the possibility that economic instability could lead to new episodes of repression and forced migrations.
Changes at the Central Bank and a power struggle within Iran
In the midst of the economic and social storm, the government has announced changes in key monetary policy positionsOne of the most significant decisions is the appointment of Abdolnasser Hemmati as the new governor of the Central Bank, a position he already held between 2018 and 2021, during another period of sharp depreciation of the rial.
Hemmati, who has also served as Minister of Economy and Finance, He returns to the forefront after being dismissed by Parliament. months ago, precisely because of the currency's weakness. His return is interpreted as an attempt by the executive branch to bring back someone with experience in currency crises, although it also highlights internal tensions over who should take responsibility for the economic downturn.
From within the judiciary, some voices have called for “the swift punishment of those responsible for currency fluctuations”This formulation leaves the door open to both internal investigations and the search for scapegoats within the economic apparatus. These kinds of messages add to the climate of pressure on technocrats and business leaders, in a scenario where Economic decisions have an immediate political interpretation..
At the same time, the political leadership is trying to project strength abroad. The authorities insist that Iran will respond harshly to any aggression.Maintaining a discourse of resistance against the United States and Israel, while simultaneously trying to strengthen ties with allies such as Russia or other regional actors to circumvent some of the financial restrictions.
This balancing act—rhetorical openness to social demands, changes in the economic team, and defiant messages on the international stage—reflects the extent to which The regime seeks to defuse the protest without relinquishing political control.The outcome of this strategy will be key in determining whether the mobilizations fizzle out, transform into a broader movement, or lead to a new wave of repression.
The outbreak of protests in Iran over the high cost of living, hyperinflation and the collapse of the rial It encapsulates the impact of years of sanctions, controversial economic decisions, and escalating geopolitical tensions. Business owners and students have given a face to a long-simmering discontent, while the government attempts to balance calls for dialogue, changes at the top of the economic cabinet, and security deployments. What happens in the coming weeks will be closely watched in Europe, where The stability of Iran and its regional environment is considered a key element for security, energy, and the management of future migration crises..
