Iran sanctions and a currency crash triggered mass protests

A sharp fall in the rial and surging prices for basic goods prompted widespread protests beginning in late December, and officials have both ordered security actions and acknowledged governance failures. The government announced it will end foreign-exchange subsidies and increase subsidies for essential goods.

Iran is experiencing widespread protests after the national currency fell to record lows and the cost of basic imports rose sharply. The unrest began in late December with shopkeepers in Tehran and expanded to include students, workers and other groups. Officials have responded with security actions and public statements, while some leaders also acknowledged economic problems. The unrest follows years of sanctions, lower oil revenues, drought and complaints about corruption and mismanagement. Key developments: - The rial plunged in 2025, making imported essentials more expensive and contributing to rapid inflation reported by international agencies. - Protests began with merchants in Tehran and spread into a broader movement involving students and workers calling for better living standards and political change. - Senior officials have taken security measures and criticized protesters as rioters, while some leaders publicly acknowledged governance failures and called some demands legitimate. Rights groups reported arrests and fatalities during clashes. - The government announced it will end a system of foreign-exchange subsidies and said it would raise subsidies to make essential goods more affordable. Summary: The protests reflect deep economic pressures from a weakened currency, sanctions, lower oil income and long-standing governance issues, and they have prompted both security responses and official acknowledgements. Undetermined at this time.