What's happened
As of early January 2026, Iran is experiencing widespread protests led by students, shopkeepers, and bazaar merchants in response to a record plunge of the rial to 1.42 million per US dollar and inflation exceeding 42%. The government acknowledges the unrest, pledging dialogue and economic reforms, while tensions rise following US and Israeli strikes in 2025 and renewed international sanctions.
What's behind the headline?
Economic Collapse Fuels Unrest
Iran's currency has plummeted to historic lows, with the rial trading at over 1.4 million to the US dollar, driving inflation above 42%. This economic turmoil has directly triggered protests across Tehran and other cities, involving students, shopkeepers, and bazaar merchants. The government's inability to stabilize the economy or offer effective relief has eroded public trust.
Political and Security Challenges
The protests occur against a backdrop of heightened external threats, including US and Israeli airstrikes on Iranian nuclear and military sites in mid-2025. Iran's leadership faces a dual challenge: quelling domestic dissent while preparing for potential further military confrontations. Statements from Iranian officials emphasize readiness to retaliate, signaling a tense security environment.
Government Response and Limitations
While officials have acknowledged protesters' "legitimate demands" and promised dialogue, skepticism remains high due to past violent crackdowns and economic mismanagement. The resignation of the central bank governor and appointment of a former economy minister reflect attempts to address the crisis but may be too late to restore confidence.
Broader Implications
The protests highlight deep structural issues: economic mismanagement, corruption, and the impact of international sanctions. The risk of protests evolving beyond economic grievances into broader political demands remains significant. Continued external pressure and internal instability could further destabilize Iran, with regional and global repercussions.
Forecast
Iran will likely face sustained unrest unless meaningful economic reforms and political concessions occur. The government's current approach risks escalating tensions both domestically and internationally. The situation demands close monitoring as it could influence regional security and global energy markets.
What the papers say
The New York Times' Farnaz Fassihi highlights the complexity of Iran's crisis, noting the government's dead-end in addressing economic collapse and external threats, with protests rattling officials and eliciting US and Israeli responses. Ben Hubbard of the New York Times details the protests' spread and government reactions, including the resignation of the central bank governor and the president's acknowledgment of the crisis.
The Independent reports on President Trump's warning of US intervention if protesters are killed, and Iran's stern response emphasizing sovereignty and readiness to retaliate. Al Jazeera provides detailed coverage of the protests' origins in economic hardship, government promises of dialogue, and the broader context of sanctions and previous unrest.
Reuters and SBS focus on the economic dimensions, reporting on the rial's record lows, inflation rates, and government plans for dialogue and reforms. The Times of Israel and France 24 document the protests' scale, including the role of bazaar merchants and the political symbolism of chants referencing the pre-revolution monarchy.
Together, these sources paint a picture of a nation grappling with severe economic distress, political unrest, and escalating external pressures, with the government caught between demands for reform and maintaining control.
How we got here
Iran's economic crisis stems from years of US sanctions reimposed after 2018, causing the rial to lose nearly half its value in 2025. Inflation has surged above 40%, severely impacting living costs. The government faces mounting domestic unrest amid external military threats and diplomatic pressure over its nuclear program.
Go deeper
- What triggered the recent protests in Iran?
- How is the Iranian government responding to the unrest?
- What impact do US and Israeli actions have on Iran's situation?
Common question
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Why Is Iran Facing Economic Crisis and Public Unrest?
Iran is currently experiencing a severe economic crisis marked by currency depreciation, soaring inflation, and widespread protests. Many wonder what has caused this turmoil and what it means for the country's future. Below, we explore the main reasons behind Iran's economic struggles, the nature of the protests, and potential political implications.
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How Is Iran's Economic Crisis Impacting the World?
Iran's ongoing protests and economic turmoil are making waves beyond its borders. From soaring inflation and currency collapse to regional stability concerns, many are wondering how these developments could affect global markets, oil prices, and international relations. Below, we explore the key questions about Iran's crisis and its wider implications.
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What’s Next for Iran’s Economy and Protests?
Iran is currently facing a turbulent period marked by economic decline and widespread protests. With currency depreciation, rising inflation, and social unrest, many are wondering what the future holds. Will the protests continue or escalate? How will international sanctions impact Iran’s economy? Here are the key questions and answers to understand Iran’s current crisis and what might come next.
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Why Are There Protests in Iran Now?
Iran is currently experiencing widespread protests driven by severe economic hardship, political tensions, and international pressures. Citizens, including students and shopkeepers, are voicing their frustrations over soaring inflation, a collapsing currency, and government responses. These protests raise questions about Iran's economic stability, political future, and the impact of international sanctions. Below, we explore the key issues fueling this unrest and what it could mean for Iran's future.
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What Are the Biggest News Stories Right Now?
Stay updated with the latest global headlines shaping the world today. From economic crises in Iran to political shifts in the UK, these stories are influencing international relations, economies, and everyday lives. Curious about how these events connect or what might happen next? Read on for a comprehensive overview of the top news stories currently making headlines.
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Why Are Protests in Iran Happening Now?
Iran is currently experiencing widespread protests driven by severe economic hardship, political tensions, and regional conflicts. Many are asking what’s fueling this unrest and what it means for Iran’s future. Below, we explore the key reasons behind the protests, the impact on ordinary Iranians, and what might happen next.
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Could the US intervene in Iran now?
With ongoing protests and rising tensions between Iran and the US, many are wondering if military intervention is on the table. The situation is complex, involving economic hardship, regional security concerns, and political debates. Below, we explore the current state of affairs and answer key questions about what might happen next.
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How Is Iran’s Economic Crisis Affecting Daily Life?
Iran is currently facing a severe economic crisis marked by soaring inflation, a plunging currency, and widespread protests. Many Iranians are feeling the impact firsthand, from rising food prices to job insecurity. This page explores how the economic turmoil is changing everyday life in Iran, what’s causing the crisis, and what the government is promising in response. If you're wondering how these developments might affect ordinary Iranians or what the future holds, keep reading for clear answers.
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How Do International Sanctions Affect Iran’s Economy?
Iran is currently facing severe economic challenges amid renewed international sanctions, a plunging currency, and rising inflation. These sanctions, imposed by the US and other countries, aim to pressure Iran politically but also have profound effects on its economy and everyday life. Many wonder how these measures impact Iran’s financial stability, social unrest, and future prospects. Below, we explore the key questions about sanctions and their real-world effects on Iran today.
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What Are the Global Implications of Iran’s Protests?
Iran's recent protests over economic hardship and political unrest are capturing international attention. These demonstrations not only reflect internal struggles but also have potential ripple effects across the Middle East and beyond. From regional stability to global oil markets, understanding the broader impact of Iran’s unrest is crucial. Here are some key questions and insights into what these protests could mean for the world.
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What’s next for Iran’s protests? Will they keep going or die down?
Iran is currently experiencing widespread protests driven by economic hardship, inflation, and political tensions. With the rial hitting record lows and international sanctions intensifying, many wonder what the future holds for these demonstrations. Will they continue to grow, or will the government manage to suppress them? Here are some key questions and answers to understand the possible directions of Iran’s unrest.
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Why Are Iran Protests Happening Now? Economic Crisis Explained
Iran is currently experiencing widespread protests driven by severe economic hardship, including a record plunge of the rial and soaring inflation. Many Iranians, from students to shopkeepers, are voicing their frustration over the country's economic collapse and political tensions. Curious about what’s fueling these protests and what the government is doing? Below, we answer key questions about Iran's current crisis and what it means for the future.
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How are Iran and Venezuela responding to their current crises?
The ongoing protests in Iran and the detention of Venezuela's president Nicolas Maduro have captured global attention. These events are not only shaping regional stability but also raising questions about international responses, sanctions, and geopolitical alliances. Below, we explore the key questions surrounding these crises and what they mean for the world today.
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What’s next for Iran’s economy and protests?
Iran is currently facing a complex crisis marked by widespread protests and economic turmoil. With the rial hitting record lows and inflation soaring above 42%, many wonder what the future holds for Iran’s economy and political stability. Will these protests lead to significant change? How might regional tensions influence Iran’s path forward? Below, we explore the key questions shaping Iran’s uncertain future.
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How Are Recent US and Israeli Strikes Impacting the Middle East?
Recent military actions by the US and Israel have sparked widespread concern about regional stability. These strikes are raising questions about escalation, international responses, and potential global consequences. Below, we explore the key issues surrounding these events and what they mean for the future of the Middle East and beyond.
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