Iran descended into intense civil unrest on Sunday and Monday as a catastrophic economic collapse set off widespread protests and strikes throughout Tehran.
The demonstrations center on the historic collapse of Iran’s currency, the rial. “Iran’s rial on Sunday plunged to 1.42 million to the dollar. On Monday, it traded at 1.38 million rials to the dollar,” the Associated Press reported. This depreciation, marked by a 7 percent single-day drop, effectively paralyzed commerce and fueled triple-digit inflation for essential goods.
The protests began on Sunday in Tehran’s commercial hubs, including the Grand Bazaar, the mobile phone markets of Alaeddin and Charsou, and the Lalehzar electrical district. By Monday, the movement gained significant momentum as thousands of merchants shuttered their shops in a coordinated strike against economic mismanagement and the skyrocketing cost of living.
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Demonstrators marched through the streets, chanting “Shut it down, shut it down” and “Don’t be afraid, don’t be afraid—we are all together,” while calling on security forces to join the people. In some areas, the state responded with force, using tear gas and rubber bullets to disperse crowds, while students at Amir Kabir University launched hunger strikes in solidarity.
Today in Tehran, shopkeepers poured into the streets because their money is becoming worthless. They are protesting the collapse of Iran’s currency but this is how dictatorships crack.
When daily survival becomes impossible, fear changes sides.In 2019, economic collapse turned… pic.twitter.com/jGa9DXJ0nh
— Masih Alinejad 🏳️ (@AlinejadMasih) December 29, 2025
Iran: Public protests in Iran continue to grow as Iranians fill Khayyam street in protest of the Islamic regime in Iran. pic.twitter.com/tkJwVf8YVe
— Emily Schrader – אמילי שריידר امیلی شریدر (@emilykschrader) December 29, 2025
People are flooding into the streets of Iran right now. Amazing to witness.
— 𝐍𝐢𝐨𝐡 𝐁𝐞𝐫𝐠 ♛ ✡︎ (@NiohBerg) December 29, 2025
🚨 Iran: Expansion of protests in Tehran – large gatherings of demonstrators at several points across the city – protesting the economic situation. pic.twitter.com/BWJQ8PdDD0
— Raylan Givens (@JewishWarrior13) December 29, 2025
The economic crisis is driven by a “perfect storm” of domestic and international pressures. Internally, the government faces an acute budget shortfall; officials admit that oil revenues for the year have already been exhausted, forcing the state to raid the National Development Fund. Lawmakers have also alleged massive corruption, reporting that $6.7 billion in oil revenue has been “lost” by entities affiliated with the Oil Ministry.
Externally, the restoration of “maximum pressure” by the Trump administration and the United Nations’ “snapback” of nuclear sanctions have crippled Tehran’s ability to access foreign currency. This diplomatic deadlock followed a major military escalation in June 2025, including Israeli and United States air strikes on Iranian nuclear sites.
With average monthly wages falling to roughly $100 — well below the $450 required for basic survival — and food inflation exceeding 70%, the Iranian public’s patience has reached a breaking point. Observers note that the participation of the bazaar, which was instrumental in the 1979 Revolution, signals a dangerous turning point for the Islamic Republic.
As lawmakers warn of the “crushing sound of the people’s footsteps,” the regime faces its most significant threat of internal upheaval in years, caught between a collapsing economy and sustained military pressure.
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