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Protests against Iran’s rising living costs extended to several universities on Tuesday, with students taking to the streets alongside shopkeepers and bazaar merchants, according to semi-official media reports. The government responded by calling for dialogue with the demonstrators.
In 2025, Iran’s rial has depreciated nearly 50% against the dollar, with inflation reaching 42.5% in December. The nation continues to grapple with frequent unrest in recent years, U.S. sanctions, and threats of Israeli military strikes.
President Masoud Pezeshkian announced on social media late Monday that he had instructed the interior minister to address the “legitimate demands” of the protesters. Government spokesperson Fatemeh Mohajerani stated that a dialogue process would be established, including talks with protest leaders.
“We officially recognize the protests… We listen to their concerns and understand that this unrest stems from the economic hardships impacting people’s livelihoods,” she said on Tuesday, as reported by state media.
Video footage verified by Reuters showed large crowds marching in Tehran, chanting “Rest in peace Reza Shah”—a historical reference to the founder of the monarchy overthrown during the 1979 Islamic Revolution. Iranian state television also broadcast images of protests in central Tehran.
The semi-official Fars News Agency reported that hundreds of students demonstrated at four universities in Tehran on Tuesday. Social media users expressed varied opinions—some supporting the protests, citing high prices and corruption as reasons for the anger, while others warned of the spread of unrest nationwide.
Authorities have historically suppressed similar protests, employing force and mass arrests over issues from economic grievances to drought, women’s rights, and political freedoms. The current government has not specified the format of upcoming dialogues, which follow the first major protests since Israeli and U.S. airstrikes on Iran in June, actions that united many Iranians in patriotic sentiment.
Pezeshkian, speaking with trade unions and market activists Tuesday, assured that the government aims to resolve their issues and address their concerns, according to official reports.
Iran’s economy has been under severe strain for years, especially after the reimposition of U.S. sanctions in 2018 when President Donald Trump withdrew from an international nuclear agreement. United Nations sanctions were reinstated in September, prompting reports of high-level efforts to prevent economic collapse, bypass sanctions, and manage public anger.
Widespread economic inequality—between ordinary citizens and the ruling elite—and issues like mismanagement and corruption have fueled discontent. Inflation persists at high levels, with prices surpassing the means of many Iranians. The official exchange rate placed the rial at approximately 1.4 million to the dollar on Tuesday, a record low compared to 817,500 at the start of the year.
Since late March, inflation has remained above 36.4% annually, according to official data. On Monday, the central bank chief resigned, citing the government’s recent economic liberalization efforts which put pressure on the open market for foreign currency—though most businesses continue to rely on official exchanges where the rial’s value is stabilized.
Iran experienced major protests in 2022 over fuel prices and other living costs, notably for staples like bread. Meanwhile, unrest connected to the death of Mahsa Amini, a young Kurdish woman detained by morality police for allegedly violating dress codes, marked some of the most significant demonstrations in years.
Internationally, Iran remains under intense scrutiny. U.S. President Biden has indicated the possibility of supporting renewed Israeli aerial attacks if Tehran advances its ballistic missile or nuclear weapons programs. In June, Israel and the U.S. launched a 12-day barrage of strikes targeting Iran’s military facilities and nuclear sites, aiming to halt efforts to develop atomic weapons. Iran insists its nuclear activities are peaceful and denies nuclear weapons ambitions.
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