Iran faced its largest public protests in three years on Monday as thousands of citizens demonstrated against soaring inflation and a collapsing currency. Growing economic pressure forced Central Bank Governor Mohammad Reza Farzin to resign, intensifying political uncertainty. Iran Protests in Three Years Amid Inflation and Currency Collapse.
Iran Protests Spread Across Major Iranian Cities
Protests erupted in Tehran and several major cities, including Isfahan, Shiraz, and Mashhad. In Tehran, traders and shopkeepers shut down businesses on Sadi Street and in the Grand Bazaar area. Commercial activity came to a halt as crowds gathered to protest rising prices and declining living standards.
Eyewitnesses reported that many shops remained closed throughout the day. Protesters raised slogans criticizing government policies and demanding economic relief. In some areas of the capital, tensions escalated, prompting police to use tear gas to disperse the crowds.
Iranian Rial Hits a Historic Low due to Iran Protests
Public anger intensified after Iran’s currency, the rial, fell to a record low against the US dollar. On Sunday, the exchange rate dropped to 1.42 million rials per dollar in the open market. On Monday, the currency recovered slightly to around 1.38 million rials.
The sharp decline pushed inflation even higher. Prices of food, fuel, and basic household goods rose rapidly. Official government data showed inflation exceeding 42% in December. Food prices alone increased by more than 70% over the past year.
Economic experts warned that Iran may move toward hyperinflation if the currency continues to weaken. Recent adjustments in fuel prices could worsen the situation by raising transportation and production costs.
Largest Unrest after Iran Protests Since 2022
Observers described these protests as the biggest since 2022. That year, nationwide demonstrations followed the death of 22-year-old Mahsa Amini in police custody. Authorities had detained her for allegedly violating hijab rules, which triggered months of unrest.
Unlike the earlier protests, the current demonstrations focus mainly on economic hardship. However, analysts say frustration reflects broader dissatisfaction with governance, sanctions, and long-term instability.
Tax Increase Fears Raise Concerns
Iranian media reported that the government may raise taxes starting March 21, which marks the beginning of the new Iranian year. This possibility has added to public anxiety. Many citizens already struggle with stagnant incomes and rising living costs.
Long-Term Economic Problems
Iran’s economy has faced persistent challenges since the 1979 Islamic Revolution. High inflation, weak exports, and limited access to global markets have strained growth. Heavy reliance on imports has further weakened the rial over time.
In 2023, inflation rose faster than the government’s currency devaluation efforts. This trend sharply reduced household purchasing power and savings. International sanctions worsened the crisis by limiting access to foreign currency and financial systems.
Impact of US and International Sanctions
The United States has imposed extensive sanctions on Iran due to its nuclear program and regional security concerns. Under former President Donald Trump, the US enforced a “maximum pressure” strategy. This policy targeted oil exports, banking, shipping, and foreign firms that bought Iranian oil.
The United Nations plans to expand sanctions related to Iran’s weapons programs by October 2025. These measures have restricted foreign investment, reduced oil revenue, and increased import costs.
Oil-Dependent Economy Under Stress
Iran relies heavily on oil exports to support its economy. In 2024, Iran exported goods worth approximately $22.18 billion, mainly oil and petrochemicals. Imports reached $34.65 billion, creating a trade deficit of $12.47 billion.
In 2025, falling oil exports and ongoing sanctions pushed the trade deficit close to $15 billion. China remains Iran’s largest trading partner. It accounts for about 35% of Iran’s exports and nearly 90% of its oil shipments. Turkey, the UAE, and Iraq also play key roles.
Iran has tried to expand trade with neighboring countries and the Eurasian Economic Union. Projects like the International North–South Transport Corridor aim to improve connectivity. Despite these efforts, economists expect GDP growth to reach only 0.3% in 2025.
Uncertain Economic Outlook
Experts agree that Iran will struggle to stabilize its economy without sanctions relief or a revived nuclear agreement. Until then, inflation, currency depreciation, and public unrest will likely continue to shape the country’s future.
Sudan and the Flow of Information: Why One of the World’s Worst Wars Remains Underreported