Iran Protests & Economic Woes: Ayatollah Resistance Amidst Public Suffering

Iran’s economy continues to struggle, prompting widespread discontent and protests despite attempts by the government to quell unrest. While demonstrations have subsided from their peak, the underlying economic issues remain unresolved, and the threat of further escalation persists.

Protests initially erupted in late 2025 following shopkeepers in Tehran’s grand bazaar shutting their stores in protest over the deteriorating economic conditions. These demonstrations quickly swelled into mass protests against Iran’s clerical rule, but have since quieted following deaths and detentions of protestors.

Estimates of the death toll vary, with the United States-based Human Rights Activists News Agency (HRANA) reporting 2,615 deaths as of Wednesday, January 16, 2026. However, the Iranian government claims these numbers are vastly exaggerated and has not released an official toll.

The situation briefly drew the attention of U.S. President Donald Trump, who threatened action if killings continued. However, he later stated he had received assurances from Tehran that the killings would stop and executions of detained protesters would not take place.

Economic Roots of the Unrest

The unrest is deeply rooted in economic distress. Hassan Hakimian, emeritus professor of economics at SOAS, explained to Al Jazeera that the recent unrest was “undoubtedly rooted in economic distress.” The specific factors contributing to this distress are complex and multifaceted.

Ayatollah Ali Khamenei, Iran’s Supreme Leader, acknowledged the economic crisis for the first time on Saturday, January 3, 2026, addressing the protests and referring to the bazaari middle class as “among the most loyal Iranians in the country.” This acknowledgement signals a degree of recognition of the severity of the economic challenges facing the nation.

The protests have troubled the authorities under Ayatollah Ali Khamenei, and the economic crisis is driven in part by sanctions imposed by the United States. The situation is further complicated by a plunging currency and widespread economic hardship.

A Changing Dynamic

Recent developments suggest a shift in Iran’s approach to the crisis. According to la Repubblica, Iran has “changed the war,” indicating a potential alteration in strategy or tactics in response to the ongoing unrest and economic pressures.

The protests represent one of the biggest challenges to Iran’s clerical leadership since it took power in 1979. The scale and persistence of the demonstrations highlight the depth of public dissatisfaction and the potential for further instability.

While the protests may have been temporarily suppressed, the underlying economic concerns remain unaddressed. The threat of intervention by the U.S. Continues to loom, and the dire economic conditions that initially sparked the protests have only worsened.