In the Islamic Republic of Iran, the current unrest began on December 28, 2026, when shopkeepers at Tehran’s Grand Bazaar protested against the rapid depreciation of the Iranian rial. These demonstrations quickly expanded into nationwide protests involving an unusually broad social coalition. Iran has experienced recurrent protest cycles since 1979; however, the present episode unfolds against a backdrop of severe macroeconomic stress and heightened external confrontation.
Over the past year, the rial has reached record lows and inflation has risen to approximately 40 per cent, driving sharp increases in the cost of basic goods. Long-standing structural issues—water scarcity, electricity outages, unemployment, and systemic corruption—have compounded popular discontent. The reactivation and expansion of United States sanctions, framed within a renewed policy of “maximum pressure”, have further constrained an economy already weakened by mismanagement.