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Pictures of people walking on a street as protests surge in Tehran, Iran, January 2, 2026, following the currency’s sharp decline — Reuters
– The government held talks to address shopkeepers’ concerns, according to the embassy.
– Security forces moved quickly to suppress scattered illegal demonstrations.
– Internet services have been restored nationwide as cybersecurity measures continue.
The Iranian Embassy in Islamabad announced Monday that the primary group of protesters—mainly shopkeepers and trade guild members—had officially announced the end of their peaceful protests after engaging in government negotiations and confidence-building efforts.
Initially sparked last Sunday by shopkeepers striking over soaring prices and a stagnant economy, the protests have spread to various regions and have begun including political demands.
Demonstrations were recorded in 25 of Iran’s 31 provinces, impacting at least 45 cities, mostly small to medium-sized communities in the western part of the country, based on official statements and media reports summarized by AFP.
Since December 30, at least 12 individuals—including security personnel—have lost their lives in localized clashes, with reports of property damages particularly in western Iran.
Fars News Agency highlighted that on Sunday night, the number of protests and their geographic spread decreased notably compared to previous nights.
The embassy stated that recent protests stemmed from a sudden spike in the exchange rate, leading shopkeepers and professionals to take to the streets. The Iranian government responded swiftly by initiating dialogue through relevant authorities, with President Masoud Pezeshkian playing a central role in negotiations that aimed to address the protesters’ grievances.
Officials also accused hostile foreign elements of attempting to exploit the situation to create nationwide instability, often inciting unrest via cyberspace. Supportive statements from Israel and the U.S. reportedly encouraged efforts to mobilize residents in smaller towns.
Despite these challenges, the presence of security forces helped keep the crisis in check, quickly dispersing any illegal gatherings.
Updates from the embassy indicated internet connectivity has been reestablished across Iran, with only minor, temporary speed reductions for security reasons. The government acknowledged the legal rights of protesters but also engaged in constructive dialogue with trade guilds and market associations, helping to stabilize the situation.
The statement noted that in some remote areas, small clusters of illegal protests briefly surfaced but were swiftly dispersed. In many cities, peace and order have been fully restored under security supervision.
It praised the disciplined conduct of lawful protesters, emphasizing their respect for legal procedures as a key factor in preventing escalation.
The embassy also accused the U.S. and Israel of continuing efforts to incite unrest, with some detained rioters admitting to connections with foreign agencies and receiving financial backing from outside sources.
Gholamhossein Mohseni Ejei, head of Iran’s judiciary, declared there will be no leniency for those involved in rioting, although he affirmed the public’s right to protest. He instructed prosecutors nationwide to act firmly against those supporting disorder, emphasizing unwavering enforcement of the law.
He stated: “Iran listens to protesters and considers their criticisms, but it will not tolerate rioting.”
The rial experienced another dip Monday after recent gains, trading on the informal black market at around 1.4 million rials to the dollar—significantly weaker than the approximately 770,000 rials per dollar recorded a year earlier.
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