Iran Faces Rising Protests Amid Economic Crisis and US Warnings

Fri Jan 09 2026 06:01:53 GMT+0200 (Eastern European Standard Time)

The recent wave of protests in Iran reflects deep discontent with the government's handling of economic turmoil, as the country finds itself vulnerable amid international tensions and internal strife.

Iran is experiencing significant unrest, sparked by protests against soaring inflation and a sharp currency devaluation. As demonstrators call for political change, US warnings add pressure to an already fragile situation. The protests, originating from economic grievances, have expanded into broader calls against the ruling regime, with many Iranian citizens feeling exploited by corruption within the elite amidst severe economic hardship.

Iran is no stranger to street protests, but several factors surrounding the current unrest make it very serious.

Monday marks the ninth day since demonstrations broke out, yet even four or five days were enough for President Trump to issue a direct warning to Iranian leaders over the treatment of protesters, saying the US was locked and loaded. Then came the US special forces operation targeting Nicolás Maduro in Venezuela, followed by a second warning on Sunday.

Such direct and potential threats from a sitting US president, issued while protests are still ongoing, are highly unusual and could embolden demonstrators and encourage the unrest to spread further.

Iranian police and security forces have already responded violently almost from the outset, and reports by human rights groups claim that more than 20 people have already been killed. Now eyes are on Trump's possible move.

The protests, which began peacefully on Sunday 28 December, were initially driven by public anger over soaring inflation and the sharp devaluation of the local currency against the US dollar which now stands at about 80% higher than a year ago.

Iran's economy is in deep trouble, with little prospect for growth this year or next. Official annual inflation stands at around 42%, food inflation exceeds 70%, and some basic goods have reportedly risen in price by more than 110%.

Vulnerable position

International sanctions led by the United States have played a major role in worsening economic conditions, but they are not the full story.

High-profile corruption cases in Iranian courts involving senior officials and their families have reinforced public anger and the belief that parts of the ruling elite are exploiting the crisis.

Many ordinary Iranians believe that certain officials and their relatives benefit directly from sanctions through special arrangements that allow them to control imports and exports, move oil revenues abroad, and profit from money laundering networks.

Even the government officials believe those who are locally called Sanctions Profiteers are to blame more than the sanctions themselves.

Merchants in Tehran's Grand Bazaar were among the first groups to openly protest, closing their shops in response to daily currency fluctuations and taking to the streets to demand government intervention to stabilise the markets.

Demonstrations soon spread beyond the bazaar to other segments of society. Economic slogans quickly turned political, with calls for the removal of the entire Islamic Republic itself.

Students joined the protests, followed by small businesses in other cities and towns and other ordinary Iranians. Within days, chants against Iran's supreme leader once again became a central feature of the demonstrations.

Despite the rapid spread of the protests, they have yet to reach the intensity of those seen during the Mahsa Movement in 2022.

Given the current landscape, many observers speculate that the present situation could lead to more severe consequences than previous unrest, with the government perceived to be at its weakest in years.