Iran Currency Crisis 2025: Protests Erupt as Rial Hits Record Low

The Rial has hit rock bottom, but public anger is reaching a peak. A currency collapse is triggering Iran's most widespread unrest in recent years, with strikes and demonstrations entering their third day. What began as a shopkeepers' strike in Tehran's Grand Bazaar has now surged into a nationwide movement across cities like Karaj, Hamedan, and Shiraz.

Iran Currency Crisis 2025 Protests: Economic Failure Sparks Unrest

President Masoud Pezeshkian is attempting a delicate balancing act. While the government claims it'll listen to "harsh voices" with patience, security forces have been seen using tear gas to disperse crowds. In a major move to contain the fallout, Pezeshkian accepted the resignation of Central Bank Governor Mohammadreza Farzin on December 29, 2025, appointing former minister Abdolnasser Hemmati as his successor.

The protests have rapidly taken on a political edge. University students joined the fray, chanting "Death to the dictator"—a direct challenge to Supreme Leader Ayatollah Ali Khamenei. Surprisingly, some slogans even praised the late Shah Mohammad Reza Pahlavi, whose son, Reza Pahlavi, voiced his support from exile in the US, stating that the country's economic situation won't improve as long as the current regime remains in power.

Geopolitical Crossroads and External Pressure

The unrest coincides with heightened international pressure. During a high-stakes meeting in Florida on Monday, US President Donald Trump and Israeli PM Benjamin Netanyahu discussed Iran extensively. Trump noted that Iran's economy is "bust" and inflation is "tremendous," though he stopped short of explicitly endorsing regime change. However, he warned of potential strikes if Tehran restarts its ballistic missile or nuclear programs, following the 12-day war in June.