Economic Crisis Sparks Nationwide Protests in Iran as Rial Hits Record Low

In response to the unrest and external pressure, Supreme Leader Khamenei has dismissed the protests as “sedition” orchestrated by foreign enemies.

RMN News Political Desk
New Delhi | December 31, 2025

Anti-government demonstrations have entered their third day across Iran, fueled by skyrocketing inflation and the unprecedented devaluation of the Iranian rial against the US dollar. What began on Sunday as a strike by shopkeepers in Tehran’s Grand Bazaar has rapidly expanded to multiple major cities, including Karaj, Isfahan, Shiraz, Hamedan, and Yazd.

In an effort to manage the escalating crisis, President Masoud Pezeshkian accepted the resignation of Central Bank Governor Mohammadreza Farzin. He has been replaced by Abdolnasser Hemmati, a former economy and finance minister. While Pezeshkian stated that the government “recognises the protests” and has directed the interior minister to hold talks with protester representatives, security forces have been seen using tear gas to disperse crowds in several locations.

The unrest has taken a sharp political turn as university students joined the demonstrations, chanting slogans such as “Death to the dictator”—a reference to Supreme Leader Ayatollah Ali Khamenei—and “Long live the Shah”. From exile in the United States, Reza Pahlavi, the son of the late Shah, expressed his solidarity with the movement on social media, asserting that the country’s economic situation will continue to deteriorate as long as the current regime remains in power.

The internal turmoil has drawn significant international attention. BBC reports that the US State Department expressed support for the protesters, praising their “courage” in seeking a better future after years of economic mismanagement. During a recent meeting with Israeli Prime Minister Benjamin Netanyahu in Florida, US President Donald Trump noted that Iran’s “economy is bust” and its people are unhappy. While Trump declined to explicitly support regime change, he suggested he might back further Israeli air strikes if Iran rebuilds its nuclear or ballistic missile programs. This follows a 12-day war in June during which the US carried out air strikes on Iranian uranium enrichment sites.

In response to the unrest and external pressure, Supreme Leader Khamenei has dismissed the protests as “sedition” orchestrated by foreign enemies. Meanwhile, President Pezeshkian warned on Tuesday that any “oppressive act of aggression” against the nation would meet a “severe and regret-inducing” response.

The Iranian economy is currently like a pressure cooker with a whistling valve; as the heat of inflation rises and the currency loses its worth, the pressure builds until it forces its way out through the streets in the form of widespread public defiance.