Iran Faces Escalating Protests Amid Economic Crisis

On Tuesday, Iran experienced its third consecutive day of protests stemming from deteriorating economic conditions, with citizens voicing their frustrations over soaring inflation and the collapse of the local currency. The demonstrations, which commenced on Sunday in Tehran's bustling markets, swiftly expanded to universities across numerous cities by Tuesday. Although there have been some clashes with law enforcement, the Iranian regime has exhibited a surprising willingness to engage with the protesters. President Masoud Pezeshkian has urged the Minister of Interior to heed the legitimate demands of the people. This stands in stark contrast to the last major wave of protests between 2022 and 2023, which were met with harsh repression. Currently, Iran is grappling with an annual inflation rate that hovers around 50 percent, with food prices skyrocketing by a staggering 72 percent. Earlier this week, the local currency, the rial, plummeted to new lows against the dollar, suffering a 40 percent loss since last June. In June 2022, one dollar equated to 430,000 rials, whereas it now stands at an alarming 1,450,000 rials. This dramatic devaluation has eroded the purchasing power of many Iranians, severely curtailing their ability to buy nonessential goods in recent weeks. The protests erupted when merchants in the two largest technology markets in Tehran's Jombouri district shut down their shops and staged a demonstration. This action was echoed the following day in the Grand Bazaar. By Tuesday, protests had rippled across six major university campuses in the capital, with similar demonstrations occurring in approximately a dozen other cities, including Isfahan and Shiraz. Protesters chanted for freedom and expressed their dissent against the regime, prompting police and security forces to respond with water cannons and tear gas, albeit clashes were comparatively restrained by Iranian standards. Historically, the Iranian regime has met protests with severe violence. The wave of demonstrations from 2022 to 2023 was ignited by the tragic death of Mahsa Amini, a 22-year-old woman who was detained for allegedly not adhering to hijab regulations. This led to widespread protests that questioned the regime’s legitimacy, resulting in the deaths of over 500 protesters, thousands of arrests, and several death sentences. Amid the current protests, President Pezeshkian has recognized the grievances expressed by citizens and has emphasized the urgency required to tackle the long-standing issues affecting daily life in Iran. The resignation of the Central Bank's director, Mohammad Reza Farzin, has added to the uncertainty, though it remains doubtful whether this will yield any tangible improvement. In March, a new tax regime is set to increase the tax burden on citizens to 62 percent, further compounding the financial strain. Additionally, the price of gold coins, often seen as a refuge for savings during currency devaluation, has skyrocketed to a record high of 17 billion rials. Efforts have been made by various government officials to engage with union representatives and business leaders to initiate dialogue addressing the crisis. However, it remains unclear how this will unfold, as the protesters lack recognized leaders and conventions of dialogue are rare in Iran. In a move that may be aimed at curtailing the protests, authorities have announced the closure of universities in 18 out of the country's 31 provinces, ostensibly for energy conservation. The internal economic turmoil is compounded by external pressures, including international sanctions that hamstring oil sales—the country's principal source of revenue. Following a protracted energy crisis exacerbated by drought and depleted reservoirs feeding hydroelectric plants, Iran also faces the prospect of military threats from Israeli Prime Minister Benjamin Netanyahu and U.S. President Donald Trump in the wake of a recent 12-day war with Israel. As the situation continues to evolve, the Iranian populace is left navigating a landscape fraught with economic despair, escalating protests, and uncertain political discourse. Related Sources: • Source 1 • Source 2