Rial Plummets 50% in a Year: Behind the Iran Economic Protests 2026

Iran’s national currency has lost half its value in just twelve months, and for the merchants of the Tehran Grand Bazaar, the breaking point has arrived. On January 6, 2026, shops across the centuries-old trading hub remained shuttered as a wave of protests, triggered by economic desperation, swept through the capital and beyond. According to AP, what started on a cold December day has now evolved into a nationwide cry for relief from soaring inflation and stagnant wages.

Iran Economic Protests 2026: Driven by a Crashing Rial

Unlike previous movements that focused on political reform, the current unrest is rooted in "empty pockets." The rial has plummeted by nearly 50% over the past year, eroding the dignity of the working and lower-middle classes. From the commercial hubs of Tehran to cities like Kermanshah and Marvdasht, citizens are voicing frustration over the rising cost of living that has made basic survival a daily struggle.

The state’s response under President Masoud Pezeshkian marks a notable shift from past hardline tactics. Pezeshkian, leading a reformist administration, has acknowledged the public's right to peaceful protest and instructed the Ministry of Interior to engage in dialogue. To restore confidence, the government announced a new subsidy framework and appointed a new governor for the Central Bank of Iran.

Geopolitical Shadows and the Fear of Interference

While internal grievances are clear, Tehran remains wary of foreign involvement. Suspicion grew after U.S. President Donald Trump posted on social media that the U.S. would "come to the rescue" of protesters. In response, Ali Larijani, Secretary of the Supreme National Security Council, warned that such interference would destabilize the entire region. Supreme Leader Ayatollah Ali Khamenei also weighed in, distinguishing between "justified protest" and "rioting."