Iranians are further squeezed every day amid a tanking economy, an energy crisis, water bankruptcy and lethal pollution.

Published On 29 Dec 2025

Several protests have erupted in downtown Tehran after business owners closed down their shops in reaction to a free-falling national currency, and no improvement appears in sight amid multiple ongoing crises.

Shopkeepers near two major tech and mobile phone shopping centres in the capital’s Jomhouri area closed their businesses and chanted slogans on Sunday, before more incidents were recorded on Monday afternoon, this time with other people appearing to participate.

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Videos circulating on social media showed that there were more gatherings in the same area, as well as other nearby neighbourhoods in downtown Tehran. “Don’t be afraid, we are together,” demonstrators chanted.

There was a heavy deployment of anti-riot personnel in full gear on the streets, with multiple videos showing that tear gas was deployed and people were forced to disperse.

Many shops were closed down by owners in and around Tehran’s Grand Bazaar as well, with some footage showing business owners asking others to do the same.

State media outlets also acknowledged the protests, but quickly reacted to emphasise that the shopkeepers are only concerned about economic conditions and have no qualms with the theocratic establishment that has been ruling the country since a 1979 revolution that ousted the United States-backed shah of Iran.

The government’s IRNA news agency claimed that vendors selling mobile phones were disgruntled after their businesses were threatened by the unchecked depreciation of the Iranian currency, the rial.

The rial registered yet another all-time record low of over 1.42 million per US dollar on Monday before regaining some ground.

But the currency is not the only problem. For years, Iran has also been dealing with an exacerbating energy crisis, which has periodically contributed to deadly air pollution that claims tens of thousands of lives each year.

Most dams feeding Tehran and a large number of major cities across Iran continue to remain at near-empty levels amid a water crisis. Iran also has one of the most closed-off internet landscapes in the world.

The continuing decline of purchasing power for 90 million Iranians comes amid increasing pressure from the US, Israel and their European allies over Iran’s nuclear programme.

Israel and the US attacked Iran in June during a 12-day war that killed more than 1,000 people, including civilians, dozens of top-ranking military and intelligence commanders, and nuclear scientists.

The attacks also significantly damaged or destroyed most of Iran’s nuclear facilities, which were under the supervision of the International Atomic Energy Agency (IAEA). The watchdog has since been denied entry to the bombed sites, with no diplomatic breakthrough in sight as the West applies more pressure.

Iran last saw nationwide protests in 2022 and 2023, with many thousands pouring into streets across the country after the death in police custody of 22-year-old Mahsa Amini for alleged non-compliance with strict Islamic laws regarding headscarves.

Hundreds of people were killed, over 20,000 people were arrested, and several people were executed in connection with the protests before they subsided. Authorities blamed foreign influence and “rioters” trying to destabilise the country, as they did with previous rounds of protests.

In parliament on Sunday to defend the controversial budget bill his administration has presented, President Masoud Pezeshkian painted a grim picture of the situation.

His highly contractionary budget bill proposes a 20 percent increase in wages while inflation stands at around 50 percent, consistently one of the highest in the world over the past several years. Taxes are slated to increase by 62 percent.

“They tell me you’re taxing too much, and they’re saying you must increase wages,” Pezeshkian told lawmakers. “Well, somebody tell me, where do I get the money from?”