{"id":2527,"date":"2026-01-02T13:56:27","date_gmt":"2026-01-02T13:56:27","guid":{"rendered":"https:\/\/salarbil.com\/?p=2527"},"modified":"2026-01-02T14:01:00","modified_gmt":"2026-01-02T14:01:00","slug":"from-bazaar-strikes-to-street-revolt-irans-economic-collapse-fuels-a-new-wave-of-unrest","status":"publish","type":"post","link":"https:\/\/salarbil.com\/index.php\/2026\/01\/02\/from-bazaar-strikes-to-street-revolt-irans-economic-collapse-fuels-a-new-wave-of-unrest\/","title":{"rendered":"From Bazaar Strikes to Street Revolt: Iran\u2019s Economic Collapse Fuels a New Wave of Unrest"},"content":{"rendered":"\n<p>Iran is witnessing a surge of protests across multiple cities, as frustrations over a collapsing currency and economic hardship have ignited broader political dissent in recent days . What began over the past few days as spontaneous demonstrations by shopkeepers and traders in Tehran \u2013 sparked by the rial\u2019s plunge to a record low \u2013 has quickly spread nationwide . Students at universities from the capital to provincial cities have joined in, and many ordinary citizens are taking to the streets. Initially focused on plummeting living standards and inflation hovering around 40\u201350%, the protests have evolved into a wider cry for freedom, equality, and democratic change, with chants targeting Iran\u2019s authoritarian rulers. This upheaval poses a serious challenge to the country\u2019s conservative establishment, which now faces both public anger at home and mounting pressure from abroad \u2013 including renewed international sanctions and even the specter of military strikes by its adversaries . It is the most significant unrest Iran has seen since the 2022 \u201cWomen, Life, Freedom\u201d protests, underscoring deepening fissures between reformists and hardliners, and between the government and the governed. The immediate trigger for the latest protests has been Iran\u2019s worsening economic crisis. Over the past year the national currency has lost nearly half its value, crashing to about 1.4 million rials per US dollar (from ~820,000 a year ago) on the unofficial market . This free-fall in the rial \u2013 accelerated after the United Nations reimposed sanctions on Iran\u2019s economy in September \u2013 has driven up import prices and pushed inflation above 40% &nbsp;<\/p>\n\n\n\n<p>Ordinary Iranians are struggling as prices of basic goods (like food, which is up 72% year-on-year) soar beyond reach . Many merchants find it impossible to price their goods amid wild currency fluctuations and fear they will incur huge losses if they sell now and cannot restock later. As one Tehran analyst explained, \u201cMerchants don\u2019t know if after they sell their goods today, they will be able to buy more\u2026 if they\u2019re supposed to sell at a huge loss, they come to the streets and make themselves heard\u201d. The breaking point came when the rial hit a historic low over the weekend, prompting shopkeepers in major Tehran markets (such as the Grand Bazaar and the electronics hub of Alaeddin Mall) to shut their stores in protest . Beginning on Sunday, December 28, crowds of traders and customers gathered in downtown Tehran chanting against the government. By the next day, strikes and rallies spread beyond the market corridors and into the streets and squares of the capital. This wave of unrest then radiated to other cities: reports describe demonstrations from Isfahan and Yazd to Hamadan, Qeshm Island, Zanjan, and beyond, as people vent their anger at economic mismanagement and hardship&nbsp; . Notably, this movement has bridged social groups \u2013 uniting bazaar merchants (a traditionally regime-aligned class) with university students and the broader urban public \u2013 reflecting a widening loss of faith in the government\u2019s ability to solve the crisis&nbsp; Although the protests were initially economic in their grievances, they have rapidly taken on a political character. On the first day, slogans centered on the cost of living and the dollar\u2019s exchange rate. By the second and third day, however, crowds were heard shouting \u201cDeath to the dictator!\u201d and \u201cSeyyed Ali will be toppled this year\u201d, directly attacking Supreme Leader Ayatollah Ali Khamenei\u2019s rule&nbsp; . In multiple cities, chants shifted to \u201cFreedom and equality!\u201d and even nostalgic monarchist cries like \u201cReza Shah, bless your soul!\u201d, indicating a yearning for a different form of governance. This quick transition from pocketbook issues to collective political slogans suggests that the economic shock has catalyzed long-simmering discontent with Iran\u2019s theocracy&nbsp; . Many Iranians, especially younger generations, are openly demanding an end to decades of authoritarian rule and clerical supervision over daily life \u2013 a sentiment encapsulated in protesters\u2019 calls for \u201cazadi\u201d (freedom) and democracy alongside their economic demands. Confronted with the growing unrest, Iran\u2019s government has offered a mixed response \u2013 combining pledges of dialogue with familiar repression. President Masoud Pezeshkian (who took office earlier in 2025) has publicly acknowledged the protesters\u2019 grievances and struck a conciliatory tone. On December 29, he announced that he \u201ctasked the Interior Minister to hear the legitimate demands of the protesters through dialogue with their representatives,\u201d vowing that the government would \u201clisten patiently\u201d and work to resolve the problems driving people into the streets. As a gesture of accountability, Pezeshkian also accepted the resignation of Iran\u2019s central bank chief amid the currency chaos, replacing him with former banker Abdolnaser Hemmati in an effort to restore a semblance of economic competence&nbsp; . Moreover, officials have signaled plans for monetary reforms and measures to protect people\u2019s purchasing power, with the president insisting that safeguarding \u201cthe livelihood of the people\u201d is his \u201cdaily concern\u201d. Yet these words of outreach have been accompanied by a heavy-handed security reaction on the ground. As demonstrations entered their second and third days, authorities deployed large numbers of riot police and security forces, who confronted crowds with tear gas, baton charges, and even live ammunition in some instances&nbsp; . Videos verified by journalists show protesters clashing with anti-riot units in Tehran \u2013 at one point pushing back security forces until volleys of tear gas drove them back.&nbsp;<\/p>\n\n\n\n<p>In the city of Hamadan, security forces reportedly opened fire directly at demonstrators, according to footage obtained by Iran International TV&nbsp; . A now-iconic image circulating on social media shows a lone protester sitting defiantly in the middle of a Tehran street as a column of motorcycle-mounted police approaches \u2013 a scene likened to a new \u201cTank Man\u201d moment of individual courage&nbsp; . Such displays of defiance have been met swiftly with force: witnesses describe that the solitary protester was beaten and hauled away moments after that photo was taken. Behind the scenes, Iran\u2019s power centers appear divided over how to handle the crisis. The elected government under Pezeshkian \u2013 considered a pragmatist or reformist-leaning figure \u2013 seems inclined toward restraint and dialogue to calm public fury&nbsp; . In contrast, the hardline security establishment, led by the Islamic Revolutionary Guard Corps (IRGC) and backed by Supreme Leader Khamenei, has shown little tolerance for dissent. The IRGC has ominously warned of \u201csedition\u201d and \u201ccognitive warfare\u201d afoot, framing the protests as a foreign-influenced plot and vowing to \u201cquell the unrest\u201d decisively. State-controlled media, for their part, are emphasizing that the demonstrations are solely about the exchange rate and \u201cmobile phone retailers\u2019\u201d woes, pointedly downplaying any anti-regime sentiment&nbsp; . This internal divergence \u2013 a president advocating engagement versus security forces resorting to intimidation \u2013 highlights the longstanding rift between Iran\u2019s reformist and conservative camps. It also raises the risk of miscalculation: if the security apparatus undermines the government\u2019s overtures by using excessive force, it could further inflame public anger and weaken the civilian leadership\u2019s credibility. At the heart of these protests is the Iranian people\u2019s deep frustration not only with economic misery, but with decades of political repression and social inequality. Many protesters are motivated by values of equality, liberalism, and democracy, which they feel have been denied under the Islamic Republic\u2019s rule. This is evident in the slogans ringing out on campuses and streets: \u201cNo to scarf, no to suppression \u2013 freedom and equality!\u201d chanted female and male students together, directly rejecting the compulsory hijab and broader patriarchal controls. Such cries harken back to the \u201cWomen, Life, Freedom\u201d movement of 2022\u201323, when Iranians rose up after the death of 22-year-old Mahsa Amini to demand women\u2019s rights and an end to clerical authoritarianism . Hundreds were killed and tens of thousands arrested in that crackdown , yet the desire for change did not disappear. Today\u2019s demonstrators carry that torch forward, insisting on personal freedoms, gender equality, and a voice in how their country is run \u2013 principles aligned with modern liberal and leftist ideals of social justice. Protesters also speak the language of social and economic justice. Iran is a resource-rich nation, but years of corruption, mismanagement, and inequality have bred resentment among the populace. Many see a stark divide between a privileged clerical\u2013military elite and ordinary citizens struggling to make ends meet . Economic grievances thus merge with class grievances. It is not lost on the public that even as they endure 50% inflation and joblessness, vast sums are spent on elite projects or foreign adventures, and officials live in comfort. This critique \u2013 that the system serves the few at the expense of the many \u2013 resonates with left-leaning logic emphasizing equality. Demonstrators have even adopted classic protest refrains like \u201cDon\u2019t be afraid, we are together,\u201d signaling solidarity across social groups against the entrenched power structure . In short, the perspective of the people in these protests goes beyond immediate economic relief: they are fundamentally questioning the legitimacy and justice of the Islamic Republic\u2019s governance. From calls for a secular, democratic system to demands that basic needs like water and energy be managed competently and equitably, the protesters\u2019 vision is one of a more open, fair, and modern Iran that respects its citizens\u2019 dignity. The current turmoil also reflects the broader context of Iran\u2019s internal power struggle between reformists (or moderates) and hardline conservatives. Since the 1990s, Iranian politics have been defined by this tug-of-war: on one side, reformist leaders and their supporters push for gradual liberalization, social freedoms, and engagement with the world; on the other, the conservative establishment \u2013 anchored by the Supreme Leader, the IRGC, and hardline clerics \u2013 resists change and clings to ideological purity and authoritarian control. These tensions have sharpened in recent years. After a period of relative opening under President Hassan Rouhani (2013\u20132021), the pendulum swung back when hardliner Ebrahim Raisi took power in 2021, overseeing the brutal suppression of the 2022 protests. By 2025, facing public disillusionment and economic crisis, the regime allowed the more moderate Masoud Pezeshkian to assume the presidency, in what analysts saw as an attempt to regain public trust without ceding true power. Pezeshkian\u2019s reformist instincts are now colliding with the deep state\u2019s conservative reflexes, as seen in his call for dialogue versus the IRGC\u2019s calls for a crackdown. This is not a new story in Iran: previous uprisings \u2013 from the student protests of 1999, to the Green Movement after the contested 2009 election, to the nationwide unrest in 2017\u20132018 \u2013 have all been flashpoints in the reformist vs. hardliner saga. Often, hopeful talk of reform has been thwarted by the hardliners\u2019 entrenched power (backed by instruments like the Guardian Council, which vets candidates, and the security forces). The \u201clegitimacy deficit\u201d the state now faces, however, appears unprecedented. When even Tehran\u2019s Grand Bazaar merchants, once stalwart backers of the clerical regime, join strikes and chant against the Supreme Leader, it signals a collapse of the old social bargain. Some in the establishment have hinted at this crisis of confidence \u2013 Iran\u2019s own state media has grudgingly admitted to \u201ceconomic mismanagement and state corruption\u201d fueling public anger . Meanwhile, prominent reformist voices (many of whom have been silenced or sidelined) argue that only meaningful political relaxation \u2013 freeing political prisoners, allowing free elections, loosening social restrictions \u2013 can address the nation\u2019s woes. Conservatives, however, remain wary, fearing that concessions would only embolden their opponents and lead to the dismantling of the Islamic Republic itself. Thus the impasse continues, with the fate of the protests likely to influence which faction gains the upper hand. If the unrest grows, hardliners might double down on repression (as they did in 2022), or \u2013 if faced with a general strike or untenable instability \u2013 elements of the regime could reluctantly consider compromises to appease the public. Iran\u2019s domestic strife is unfolding against a backdrop of high international tensions, which in turn shape how both the regime and the world respond to the protests. In recent months, Tehran has been under renewed Western pressure over its nuclear and missile programs. In June 2025 a brief war erupted when Israel, with U.S. support, launched a 12-day bombing campaign against Iranian nuclear facilities \u2013 an unprecedented direct military confrontation. Although that conflict ended, it left Iran\u2019s leadership on edge, and the economy reeling from the damage and investor panic. Washington and Tel Aviv have maintained a hard line: Donald Trump signaled support for further Israeli strikes on Iran, warning that if Tehran rebuilds its military capabilities or advances its nuclear work, the U.S. will \u201chit them hard\u201d again. This hawkish stance has fed Iranian fears of an external attack \u2013 a concern the regime often exploits to justify crackdowns as \u201csecurity measures.\u201d Indeed, as protests flared this week, Iranian officials were quick to blame foreign enemies for stoking unrest. The Interior Ministry claimed the currency\u2019s collapse was driven by \u201cenemy inducements\u201d and accused \u201chostile psychological operations\u201d of encouraging strikes and riots . Such rhetoric of a \u201cforeign-backed sedition\u201d aligns with the hardliners\u2019 narrative and attempts to discredit genuine domestic dissent. International reactions to the protests have been cautiously supportive of the Iranian people. Western governments and human rights organizations have criticized Iran\u2019s use of force against peaceful protesters, recalling the regime\u2019s past human rights abuses. Notably, Israel has openly cheered on the demonstrators this time. Israel\u2019s Foreign Ministry posted in Farsi that \u201cpeople in Iran are exhausted with the regime and the collapsed economy,\u201d affirming that Israel \u201chas always stood with the Iranian people\u201d . Several Israeli figures, including former Prime Minister Naftali Bennett, released videos encouraging Iranians and stating that \u201call the nations of the free world stand with you in your just struggle\u201d . In an extraordinary message on X (Twitter), even the Mossad\u2019s official Farsi account urged Iranians to continue rising up, saying \u201cWe are with you\u2026 in the field as well\u201d \u2013 a statement implying active support by Israel\u2019s intelligence in destabilizing the regime. Such overt encouragement from Israel is unprecedented and has been seized upon by Tehran to validate its claims of foreign orchestration. The United States and European countries, for their part, have mostly issued standard calls for Tehran to respect the right to peaceful protest and to address its people\u2019s legitimate demands. However, given the concurrent geopolitical standoff, there is an undercurrent of strategic interest: a sustained popular revolt could weaken Tehran\u2019s hand internationally, potentially forcing it to divert attention inward or even destabilizing a government that Western hawks view as a threat. At the same time, analysts warn that too much external pressure or military action (such as further Israeli strikes) could backfire by rallying nationalist sentiment around Iran\u2019s rulers&nbsp; . The regime has already tried to fan patriotism, with President Pezeshkian declaring Iran is in a \u201cfull-scale war\u201d with the U.S., Israel, and Europe \u2013 framing the economic pain as the result of enemy plots rather than government failings. The coming days will be pivotal for Iran. The protesters have thus far demonstrated remarkable resilience, extending strikes and demonstrations into a third and fourth day despite arrests and violence&nbsp; . Should the momentum continue \u2013 for instance, if more sectors of society join in or if a nationwide general strike takes hold \u2013 the Islamic Republic could face one of the gravest internal tests in its history. A prolonged strike would grind economic activity to a halt and strain the state\u2019s ability to govern, potentially forcing concessions . On the other hand, Iran\u2019s security forces have shown in the past that they are willing to inflict bloodshed on a massive scale to preserve the regime\u2019s grip on power. Much may depend on the unity (or fractures) within the ruling elite: if hardliners remain firmly behind a crackdown and the Revolutionary Guards stay loyal, the state may again quell the unrest by force \u2013 at a terrible human cost and with only a temporary respite gained. But if reformist-minded officials or pragmatists like Pezeshkian gain more influence from this crisis, they might press for a different approach, perhaps offering policy changes or easing social restrictions to placate the public. Internationally, the trajectory of these events will be closely watched. A destabilized Iran could have ripple effects across the Middle East \u2013 affecting global oil markets, regional security (from Iraq and Syria to the Persian Gulf), and the balance of power vis-\u00e0-vis Israel and Saudi Arabia. Foreign powers will have to calibrate their responses: supporting Iranians\u2019 democratic aspirations and condemning repression, while avoiding steps that allow Tehran to rally nationalist backlash. For now, Iran stands at a crossroads. The ongoing protests highlight the Iranian people\u2019s yearning for dignity, economic justice, and political freedom. Whether those aspirations can translate into lasting change \u2013 or whether they will be crushed once more by the conservative rulers \u2013 will shape the fate of the country in the months and years ahead. The struggle between an entrenched theocracy and a society in search of modernity continues, and Iran\u2019s future hangs in the balance as this new chapter of turmoil unfolds.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Iran is witnessing a surge of protests across multiple cities, as frustrations over a collapsing currency and economic hardship have ignited broader political dissent in recent days . What began over the past few days as spontaneous demonstrations by shopkeepers and traders in Tehran \u2013 sparked by the rial\u2019s plunge to a record low \u2013 &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/salarbil.com\/index.php\/2026\/01\/02\/from-bazaar-strikes-to-street-revolt-irans-economic-collapse-fuels-a-new-wave-of-unrest\/\" class=\"more-link\">Read more<span class=\"screen-reader-text\"> &#8220;From Bazaar Strikes to Street Revolt: Iran\u2019s Economic Collapse Fuels a New Wave of Unrest&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":2533,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,128],"tags":[],"class_list":["post-2527","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-politics"],"_links":{"self":[{"href":"https:\/\/salarbil.com\/index.php\/wp-json\/wp\/v2\/posts\/2527","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/salarbil.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/salarbil.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/salarbil.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/salarbil.com\/index.php\/wp-json\/wp\/v2\/comments?post=2527"}],"version-history":[{"count":1,"href":"https:\/\/salarbil.com\/index.php\/wp-json\/wp\/v2\/posts\/2527\/revisions"}],"predecessor-version":[{"id":2529,"href":"https:\/\/salarbil.com\/index.php\/wp-json\/wp\/v2\/posts\/2527\/revisions\/2529"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/salarbil.com\/index.php\/wp-json\/wp\/v2\/media\/2533"}],"wp:attachment":[{"href":"https:\/\/salarbil.com\/index.php\/wp-json\/wp\/v2\/media?parent=2527"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/salarbil.com\/index.php\/wp-json\/wp\/v2\/categories?post=2527"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/salarbil.com\/index.php\/wp-json\/wp\/v2\/tags?post=2527"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}