ali Akbar moved to tehran in search of work three years ago from Izeh, a small city in Iran’s southwestern province of Khuzestan. Jobs were scarce back home,he said,and an acquaintance had told him about a furniture workshop in the capital that needed a manual labourer. The work was tough and the pay low,but anything was preferable to unemployment.
In January 2025, a severe rash emerged on his face. “It got so bad I could not focus. Gradually, the skin on my face turned redder and redder,” he told The New Humanitarian. The symptoms became so unbearable that he had to stop working for several days.Ultimately, a specialist diagnosed him with severe allergies to pollen, trees, and weeds. The only viable treatment was long-term immunotherapy requiring three injections per week, each costing 3 million rials — a sum of roughly $210 a week.
despite the financial strain, Akbar managed to continue treatment for several months, even during the economic disruptions caused by the 12-day war between Iran and Israel in June. But beginning in late November, his situation and that of millions of Iranians changed dramatically.
The warning signs had been building for months.
After UN “snapback” sanctions were reimposed and the EU tightened measures in late 2025, the rial’s long‑running weakness deepened, with the dollar reaching 1.4-1.5 million rials on the open market by early 2026, from about 600,000. Over approximately a year, the currency lost more than half its value against the dollar, a plunge driven not only by sanctions but also by domestic economic policy.
Then, in early december, President Masoud Pezeshkian’s governance decided to eliminate the preferential exchange rate of 285,000 rials for imports of essential goods like oilseeds, livestock feed, and fertilisers. Hamstrung by strict sanctions and lacking access to hard currency, the government announced it would rather provide a monthly electronic coupon worth 10 million rials to approximately 80 million Iranians.
The consequences were immediate and catastrophic.
According to data from the Statistical Center of Iran, average prices for goods and services rose by 7.9% in Dey (late December to late January) compared to the previous month. This was the second-highest monthly inflation rate recorded in at least a decade. Point-to-point inflation surged by 60% from Dey 1403 to Dey 1404 (2024-2025), the highest rate ever announced as the statistical Center began publishing these figures.
Food prices led the surge. Within a single month, prices for dairy and eggs rose by more than 19%, meat and poultry by nearly 20%, and oils and fats by upwards of 50%. food inflation in Dey was 13.8% higher than the previous month and a
Iran Protests: Economic Crisis and Public Discontent
Table of Contents
Widespread protests erupted in Iran in late December, fueled by a deteriorating economic situation marked by declining oil revenue, high inflation, and essential service shortages, leading to a significant loss of public confidence in the government.
Economic Conditions in Iran (2023-2024)
The Iranian economy faced significant challenges in 2023 and 2024, primarily driven by international sanctions and internal mismanagement. These factors combined to create a severe economic crisis impacting the daily lives of Iranian citizens.
Sanctions significantly reduced Iran’s oil revenue, a critical component of its national income. Coupled with this, Iran experienced chronic inflation, averaging around 40% according to reports from financial institutions tracking the Iranian economy. This inflation eroded purchasing power and made basic necessities unaffordable for many Iranians. Compounding these issues were widespread power and water shortages, further demonstrating government mismanagement and a lack of essential services.
Example: Reports from December 2023 indicated that the price of essential goods, such as cooking oil and dairy products, had increased by over 50% in some regions of Iran, exacerbating the economic hardship faced by families. Carnegie Endowment for International Peace details the economic pressures contributing to the unrest.
Collapse of Public Confidence
The prolonged economic hardship led to a marked decline in public confidence in the Iranian government’s ability to address the country’s problems. Iranians increasingly struggled to afford basic necessities, and the lack of reliable access to essential services fueled widespread frustration.
This loss of confidence manifested in growing public dissatisfaction and a willingness to openly challenge the government. The combination of economic pressures and perceived government incompetence created a volatile habitat ripe for social unrest. the inability of the government to provide economic stability and basic services directly contributed to the outbreak of protests.
Evidence: Commentators at the Carnegie Endowment for International Peace observed a clear correlation between the worsening economic conditions and the growing public discontent, noting that many Iranians felt they “can no longer afford to live” under the current circumstances.
Escalation to Protests in December
The culmination of these factors resulted in widespread protests across Iran beginning in the final days of December. The protests represented a direct expression of public anger and frustration with the economic situation and the government’s response.
The initial protests were sparked by specific economic grievances, but quickly broadened to encompass wider demands for political and social change. The scale and intensity of the protests indicated a deep-seated level of discontent within Iranian society. The protests signaled a significant challenge to the authority of the Iranian government.
Example: Initial reports indicated protests began in several cities, including Tehran and Isfahan, with demonstrators chanting slogans against the government and calling for economic reforms. reuters provided ongoing coverage of the protests and their initial triggers.
