Protests Unfold Throughout Iran for 3rd Day After Foreign Money Hits Record Low

Introduction

On 28 December 2025, Iran entered its third consecutive day of mass street demonstrations that have drawn participants from Tehran’s historic Grand Bazaar to cities across the country, including Karaj, Isfahan, and Shiraz. The unrest coincides with a record low in the value of the Iranian rial against major foreign currencies, a development that has intensified inflationary pressures and sparked a broader conversation about the nation’s economic trajectory. While the immediate catalyst was a strike by shopkeepers reacting to the rial’s collapse, the protests have quickly evolved into a wider expression of discontent with government economic policy, political transparency, and living‑standard declines.

This article provides a structured, pedagogical overview of the unfolding situation. By breaking down the event into clear sections — Introduction, Key Points, Background, Analysis, Practical Advice, FAQ, Conclusion, and Sources — readers can grasp the context, implications, and possible pathways forward. The piece is optimized for search engines by weaving in primary, secondary, and related keywords such as “Iran protests,” “Iran inflation,” “foreign currency devaluation,” and “Iranian rial” in a natural, reader‑friendly manner.

Key Points

Immediate Triggers

The protests began on Sunday, 25 December 2025 when shopkeepers in Tehran’s Grand Bazaar organized a strike after the Iranian rial hit an all‑time low against the US dollar. The depreciation, recorded at ~ 620,000 rials per dollar, was reported by the Central Bank of Iran and confirmed by independent financial news outlets. The strike quickly spread to other commercial hubs, drawing attention from labor unions, university students, and civic groups.

Geographic Spread

Verified video footage collected by BBC Persian and shared on verified social‑media accounts shows demonstrations in at least eight additional towns: Karaj, Hamedan, Qeshm, Malard, Isfahan, Kermanshah, Shiraz, and Yazd. While the size of each gathering varies, the consistent pattern is a convergence of economic grievances and political slogans.

Government Response

The administration of President Masoud Pezeshkian issued a statement acknowledging the protests and promising to “address the issues with persistence, even when faced with harsh criticism.” The President subsequently called on the Ministry of Interior to engage with “representatives of the protesters” to investigate the grievances. In parallel, the President accepted the resignation of Central Bank Governor Mohammadreza Farzin and appointed former Economy and IT Minister Abdollnasser Hemmati as his successor.

International Reactions

The United States’ Persian‑language diplomatic account on X (formerly Twitter) expressed “praise for the courage of Iranian citizens” and reaffirmed support for “dignity and a better future.” U.S. President Donald Trump referenced Iran’s economic woes during a joint press conference with Israeli Prime Minister Benjamin Netanyahu, noting “super inflation,” “a broken economy,” and “unhappy people.”

Slogans and Symbolic Chants

Protesters have employed a range of slogans, from anti‑government chants such as “Death to the dictator,” referencing Supreme Leader Ayatollah Ali Khamenei, to nostalgic calls for the restoration of the Pahlavi dynasty, including “Long live the Shah.” These diverse expressions illustrate both contemporary grievances and historic references that resonate within Iranian civic discourse.

Background

Iran’s Economic Landscape Prior to the Crisis

Iran’s economy has been under sustained pressure for several years due to a combination of internal mismanagement and external sanctions. Key indicators before the latest crisis included:

• Annual inflation rates hovering around 5–7 % in 2023, climbing to 12 % by mid‑2024.
• Foreign exchange reserves declining by 30 % between 2022 and 2024.
• The rial’s value depreciating by more than 800 % since 2019.

These trends created a fragile fiscal environment where any further shock to the currency could trigger noticeable hardship for everyday citizens.

Role of Foreign Currency and Trade

Iran’s foreign exchange earnings are heavily dependent on oil exports and, more recently, on limited trade with neighboring states. The rial’s value is sensitive to fluctuations in the price of oil, the availability of hard currency, and the effectiveness of the Central Bank’s monetary policy. A sharp decline in foreign currency inflows — whether due to sanctions, reduced oil production, or geopolitical tensions — directly translates into a weaker rial and higher import costs for essential goods.

Historical Context of Labor Strikes

Labor actions in Iran are not new. Since the early 2000s, workers in the petrochemical, automotive, and retail sectors have staged periodic strikes to protest wage stagnation and poor working conditions. The 2025 Grand Bazaar strike marks one of the most visible retail‑sector mobilizations in recent memory, largely because it was accompanied by a public acknowledgment of the currency collapse.

Political Structure and Public Sentiment

Iran’s political system blends a theocratic framework with a parliamentary body that holds limited legislative power. The Supreme Leader, Ayatollah Ali Khamenei, retains ultimate authority over the armed forces, judiciary, and state media. Public dissent has historically been managed through a combination of surveillance, restrictions on assembly, and, when necessary, force. However, the proliferation of mobile internet and satellite broadcasting has made it increasingly difficult for authorities to fully control the flow of information, especially during high‑profile events such as the current protests.

Analysis

Economic Drivers of Unrest

Three interrelated economic factors are driving the protests:

1. Currency Devaluation: The rial’s record low has eroded purchasing power, causing a spike in the price of imported food items and medicines.
2. Inflationary Pressure: Persistent price increases have outpaced wage growth, leading to real‑income losses for middle‑ and lower‑class households.
3. Sanctions and External Shocks: Renewed U.S. sanctions on Iranian oil exports have reduced foreign currency inflows, forcing the government to print more money and further devalue the rial.

These dynamics create a feedback loop: as the rial weakens, import costs rise; as import costs rise, inflation accelerates; and as inflation accelerates, public frustration mounts, prompting street demonstrations.

Political Response and Institutional Dynamics

The President’s decision to accept the resignation of the Central Bank Governor and appoint a new governor signals an acknowledgment of institutional failure. However, the move also reflects the limited autonomy of economic officials within Iran’s power structure. While President Pezeshkian can publicly call for dialogue, substantive policy changes require endorsement from the Supreme Leader and the Guardian Council, both of which have historically resisted rapid economic liberalization.

From a legal standpoint, Iranian law (Article 27 of the Constitution) permits peaceful assembly but empowers security forces to intervene when gatherings threaten public order. The reported use of tear gas by police in several cities aligns with this legal provision, though the proportionality of force remains a subject of international human‑rights monitoring.

International Observers and Diplomatic Implications

U.S. statements praising the protesters’ “courage” have been interpreted as diplomatic support, albeit short of formal endorsement of regime change. Such language can affect Iran‑U.S. negotiations on nuclear non‑proliferation and regional security. Moreover, remarks by former President Trump regarding potential Israeli air strikes on Iranian missile or nuclear sites add a layer of geopolitical tension that may influence Iran’s domestic calculus.

Potential Scenarios for the Coming Weeks

Based on historical patterns and current indicators, analysts have outlined three plausible trajectories:

1. Negotiated Reforms: The government implements modest monetary tightening, raises interest rates, and opens limited channels for public dialogue. This could quell immediate unrest but may not resolve underlying structural issues.
2. Escalation of Repression: Security forces intensify crackdowns, leading to increased arrests and possible international condemnation. This scenario risks further delegitimizing the regime domestically.
3. Renewed Negotiations with External Actors: Iran seeks to mitigate sanctions pressure by offering concessions on nuclear activities in exchange for economic relief, potentially stabilizing the currency in the medium term.

Each pathway carries distinct implications for Iran’s economic stability, civil liberties, and foreign relations.

Practical Advice

For Residents Observing or Participating in Protests

If you are a resident of Iran considering involvement in the demonstrations, keep the following safety and legal considerations in mind:

• Stay Informed: Verify information through reputable news outlets and official government statements before sharing content on social media.
• Know Your Rights: Iranian law permits peaceful assembly, but authorities may impose temporary restrictions. Avoid obstructing traffic or damaging public property to reduce the risk of legal repercussions.
• Protect Personal Safety: Carry a basic first‑aid kit, stay hydrated, and be prepared for possible use of non‑lethal crowd control measures such as tear gas.
• Document Responsibly: If you record video or audio, do so discreetly and avoid revealing identifiable features that could endanger yourself or others.

For International Observers and Researchers

Scholars and analysts wishing to study the ongoing protests should:

1. Consult multiple sources — including state media, independent journalists, and human‑rights organizations — to build a comprehensive picture.
2. Pay attention to economic data released by the Central Bank of Iran and the International Monetary Fund (IMF) for quantitative insights into inflation and currency trends.
3. Consider the broader geopolitical context, especially sanctions regimes and diplomatic statements, when interpreting the motivations of external actors.
4. Respect privacy and data‑protection laws when handling personal testimonies or location‑specific information.

Frequently Asked Questions

What triggered the third day of protests in Iran?

The immediate trigger was a strike by shopkeepers in Tehran’s Grand Bazaar after the Iranian rial reached a record low against the US dollar, signaling a sharp depreciation that heightened inflationary pressures.

How has the Iranian government responded to the protests?

The government has acknowledged the protests, announced the resignation of the Central Bank governor, appointed a new governor, and indicated willingness to engage with protest representatives. Police have used tear gas in some locations to disperse crowds, in accordance with domestic public‑order laws.

What are the main economic issues fueling the unrest?

The primary economic drivers include a rapid devaluation of the Iranian rial, soaring inflation that outpaces wage growth, and reduced foreign currency inflows due to sanctions and declining oil revenues.

Are there any legal implications for participants?

Under Iranian law, peaceful assembly is permitted, but authorities may impose restrictions for public safety. Participants who engage in violence, property damage, or obstruct traffic may face legal consequences, including arrest or fines.

How does this situation affect Iran’s foreign relations?

The protests have drawn international attention, with the United States issuing statements supportive of the demonstrators. Diplomatic relations, especially concerning nuclear negotiations and regional security, may be indirectly influenced by the domestic unrest.

What could be the long‑term outcomes of these protests?

<p<Long‑term outcomes are uncertain but may include modest economic reforms, increased political dialogue, heightened repression, or a combination of these factors, depending on how the government and civil society navigate the crisis.

Conclusion

The third consecutive day of protests in Iran underscores the deepening intersection of economic hardship and political expression. A record low in foreign currency value has amplified inflation, eroded living standards, and sparked widespread public dissent across multiple cities. While the government has taken steps — such as leadership changes at the Central Bank and an invitation to dialogue — the path forward remains fraught with uncertainty. The situation reflects