Iran Sees Spreading Protests as Currency Crash, War Fallout and Foreign Threats Converge

Anger over Iran’s collapsing currency spilled into the streets this week, with protests breaking out across Tehran and several other cities, adding to the strain on a government already weakened by economic failure, internal repression and the aftermath of a short but devastating war with Israel.

Videos verified by independent monitors show crowds gathering on Monday near Tehran’s Grand Bazaar and in an upscale shopping area nearby. In one clip, demonstrators shout “Azadi”—freedom—while riot police advance and fire tear gas. By evening, unrest had spread through multiple districts of the capital, forcing many shopkeepers to shut their doors.

State news agency IRNA acknowledged the disruption, reporting that trading activity at the bazaar had fallen sharply as merchants stopped transactions to avoid losses amid the turmoil.

The protests were not confined to Tehran. On Qeshm Island, in the Persian Gulf, nighttime footage shows crowds chanting “Death to the dictator” as drivers sounded their horns in support. In Hamedan, western Iran, demonstrators were heard calling for the return of the Shah, a demand that is banned under the Islamic Republic and punishable by death.

Further demonstrations were reported from Malard, Tabriz and Kerman, where protesters openly criticised the government and the Islamic Revolutionary Guard Corps. While the number of participants remains unclear, the spread of protests across distant cities suggests a coordinated surge of public frustration rather than isolated outbursts.

The immediate trigger has been the collapse of the rial. Since the June conflict with Israel, Iran’s currency has lost around 60 percent of its value, briefly falling to nearly 1.45 million rials to the US dollar this week. The plunge has erased savings and driven up the cost of basic goods in a country already suffering from runaway inflation and heavy international sanctions.

“The economic pressure has reached a point where even those who once stayed silent no longer see a future,” said Mustapha Pakzad, an analyst who tracks Iranian domestic politics.

Economic pain is colliding with other crises. Tehran is grappling with water shortages, frequent power cuts and fuel price hikes. A recent increase in petrol prices has revived memories of the 2019 protests, when security forces killed hundreds during nationwide unrest. More recently, mass demonstrations in 2022 over compulsory veiling were met with deadly force.

The government’s credibility was further damaged by the June war with Israel, which exposed serious gaps in Iran’s air defences and intelligence services. Israeli strikes penetrated deep inside the country, killing senior military figures and nuclear scientists. According to the Associated Press, nearly 1,100 people died in Iran during the 12-day conflict.

President Masoud Pezeshkian has publicly acknowledged the strain. In a social media post, he said the government was aware of the pressure on livelihoods and called on the Interior Ministry to hear public grievances. Hours later, Iran’s central bank chief, Mohammad Reza Farzin, resigned.

At the same time, pressure from abroad is intensifying. US President Donald Trump, speaking alongside Israeli Prime Minister Benjamin Netanyahu in Florida, issued a blunt warning to Tehran.

“If Iran is trying to build up again, we’re going to have to knock them down,” Trump said, adding that Washington would support Israeli action if Iran advanced its ballistic missile or nuclear programmes. “We know what they’re doing, and we’re watching very closely.”

Netanyahu has argued that Iran is rebuilding its missile capabilities and has urged stronger action, warning that renewed weapons development threatens regional stability.

Iran’s leadership has responded with defiance. In remarks published on the website of Supreme Leader Ayatollah Ali Khamenei, Pezeshkian said Iran was engaged in a “full-scale war” with the United States, Israel and Europe.

“This is not like the war with Iraq, where the battlefield was clear,” he said. “Now the pressure is everywhere—economic, political, cultural and security-related.”

Following Trump’s comments, Ali Shamkhani, a senior adviser to Supreme Leader Khamenei, warned on X that any new military action would be met with a swift and forceful response.

As night fell across Iran, videos continued to emerge of protesters chanting slogans that were once unthinkable in public—calls for the Shah’s return and open rejection of clerical rule. In several locations, security forces were either absent or slow to respond.

Whether these protests fade under repression or grow into something more serious remains uncertain. What is clear is that Iran is facing a convergence of pressures at home and abroad unlike anything seen in years—and the streets are beginning to reflect it.

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