Iranian President Masoud Pezeshkian has called on his government to listen to the “legitimate demands” of protesters and pledged to take measures to protect Iranians’ livelihoods as the national currency plunges to record lows. His statement follows two days of demonstrations in Tehran sparked by the deteriorating economic conditions and steep currency depreciation.

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Protests in Tehran Over Plummeting Rial

The protests, which began on Sunday in Tehran, saw shopkeepers near major tech and mobile shopping centers, including the Grand Bazaar, close their businesses and take to the streets. Demonstrators chanted slogans such as:

“Don’t be afraid, we are together.”

Videos shared on social media showed anti-riot forces deploying tear gas to disperse the crowds, while state media highlighted that the unrest was primarily driven by the rapid depreciation of the Iranian rial, rather than broader political dissent.

The Iranian rial has plunged to record lows against the US dollar, exacerbating the public’s anxiety over their purchasing power and economic security.

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Government Response and Presidential Statement

In a post on social media and reported by IRNA, Pezeshkian acknowledged the concerns of the protesters:

“The livelihood of the people is my daily concern. I have tasked the Minister of the Interior to hear the legitimate demands of the protesters through dialogue with their representatives, so that the government can act with all its might to resolve problems and respond responsibly.”

He also emphasized that the government has “fundamental actions on the agenda to reform the monetary and banking system and preserve the purchasing power of the people.”

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Economic Challenges Facing Iran

Iran is facing multiple economic crises simultaneously:

• Inflation: Estimated at around 50%, consistently one of the highest in the world.
• Budgetary pressures: A new budget bill proposes tax increases of up to 62%.
• Currency depreciation: The rial has been rapidly losing value in recent weeks.
• Energy crisis: Power and energy shortages continue to affect daily life.
• Water scarcity: Many dams feeding Tehran and other major cities are at near-empty levels.

The combination of sanctions from the United States, Israel, and European allies, ongoing energy challenges, and domestic fiscal policies has severely reduced purchasing power for Iran’s 90 million citizens.

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Historical Context of Protests

Iran last experienced nationwide protests in 2022 and 2023 after the death of Mahsa Amini in police custody, which sparked widespread demonstrations across the country. Hundreds of people were killed, over 20,000 were arrested, and some were executed in connection with the protests.

The current protests, although primarily economic, occur amid heightened tensions with the US and Israel following a 12-day war in June 2025, which killed over 1,000 people, including civilians and military personnel.

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Restricted Internet and Information Flow

Iran also maintains one of the most restricted internet environments in the world, limiting citizens’ ability to organize or access independent news. Despite this, social media has been a crucial tool for mobilizing protests and documenting economic hardships.

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Outlook

President Pezeshkian’s call for dialogue indicates the government’s recognition of growing public frustration over economic mismanagement and currency collapse. Analysts warn that unless immediate measures are taken to stabilize the rial and ease inflation, further protests and civil unrest are likely.