Iran economic crisis deepens as currency crash sparks unrest

Protests erupted across Iran after the rial fell to a record low against the US dollar, sparking economic anger and government calls for dialogue

PGurus Newsdesk

December 30, 2025

Iran faces fresh unrest as economic crisis deepens

Government signals dialogue to defuse unrest

Several major cities across Iran, including the capital Tehran, witnessed protests on Monday after the Iranian rial plunged to a record low against the US dollar, triggering fresh economic anxiety and reports of the resignation of Central Bank chief Mohammad Reza Farzin.

The protests erupted amid mounting public anger over soaring prices and the sharp erosion of purchasing power as the currency hit approximately 1,390,000 rials per US dollar in open-market trading, according to currency-tracking websites cited by Reuters. Western sanctions and prolonged economic mismanagement have intensified pressure on Iran’s economy, pushing inflation and food prices sharply higher.

According to Iranian state media, demonstrations took place on Monday, while Reuters reported that protests had begun earlier on Sunday and continued into the following day. Witnesses cited by the Associated Press said traders in several cities shut their shops in protest and urged others to join the shutdown.

While demonstrations on Sunday were reportedly limited to two major mobile phone markets in Tehran, the unrest spread on Monday as economic distress deepened. Bloomberg reported that food prices have surged across Iran, home to around 92 million people, worsening public discontent.

In an attempt to defuse tensions, Iranian President Masoud Pezeshkian acknowledged the legitimacy of the protests and said improving people’s livelihoods remained his “daily concern.” In a post on X (formerly Twitter) on Tuesday, Pezeshkian said he had directed the country’s interior minister to engage with protest representatives through dialogue.

“The livelihood of the people is my daily concern. We have fundamental actions on the agenda to reform the monetary and banking system and preserve the purchasing power of the people,” Pezeshkian said, adding that the government would act “responsibly” to address the crisis.

Iranian authorities also signalled a willingness to engage with demonstrators. Government spokesperson Fatemeh Mohajerani said officials were aware of the mounting pressure faced by citizens and acknowledged the scale of public frustration.

“We see, hear, and acknowledge the protests, pressures, and crises. When people raise their voices, it means significant pressure is being put on them,” Mohajerani said, according to Bloomberg.

The protests mark the latest sign of economic strain in Iran, as currency collapse, inflation, and sanctions continue to fuel public anger and test the government’s ability to stabilise the economy.

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