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Dissent

Iran Protests Intensify Amid Rial Free Fall, Mounting Regional Tensions

Radio Free Europe Radio Liberty 01/01/2026

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  • By RFE/RL’s Radio Farda
  • ( RFE / RL ) – Iranians took to the streets for a fourth day to voice their anger over the state of the reeling economy, with the currency in a free fall and the threat of a new round of military strikes hanging over the country.

    Demonstrations were reported in several cities, with many markets and shops shuttered again on December 31 after students breathed more life into the protests with rallies at universities a day earlier.

    Iranian President Masud Pezeshkian called on citizens to show solidarity instead of engaging in protest actions. But he also promised that the government would make new decisions later on December 31 that he said would improve Iranians’ economic situation.

    Videos posted on social media from Fasa in Fars Province showed protesters gathering in front of the regional governor’s office.

    Security forces in the city are said to have fired tear gas at the protesters, and some images show protesters throwing stones at the governor’s office.

    The reports could not be independently verified but the state-affiliated Mehr news agency indirectly confirmed in a report that clashes had occurred in the city.

    Citing an informed source, it also knocked down reports that one person had been killed in front of the Fasa governor’s office.

    Iran’s prosecutor-general said on December 31 that while the protests gripping the country were legitimate, any attempt to create insecurity would be met with a “decisive response.”

    This follows three days of demonstrations that saw security forces launch volleys of tear gas to disperse crowds. People were chanting anti-government slogans to protest a sharp weakening of the currency.

    In response, central bank Governor Mohammad Reza Farzin stepped down on December 29 and was replaced with former Economy and Finance Minister Abdolnasser Hemmati.

    Threat Of New Israeli Strikes

    As Iran reeled from the street protests put down with tear gas and batons, a new threat was looming from across the Atlantic after US President Donald Trump hosted Israeli Prime Minister Benjamin Netanyahu at his Mar-a-Lago residence in Florida on December 29.

    Asked whether he would support new Israeli military strikes on Iran if it continued with its missile program or nuclear program, Trump was unequivocal.

    “If they will continue with the missiles — yes; the [continuation of its] nuclear [program] — fast. One will be ‘yes, absolutely,’ the other one, ‘we’ll do it immediately.'”

    Moments earlier, Trump also noted the domestic challenges facing the Iranian authorities.

    “They’ve got a lot of problems in Iran. They have tremendous inflation. Their economy is bust…and I know that people aren’t so happy. But don’t forget, every time they have a riot or somebody forms a group, little or big, they start shooting people,” he said.

    Iranian Rial Plunges Sharply

    The Iranian rial is trading at around 1.4 million to the dollar, compared to around 800,000 a year ago, on unofficial markets. Official exchange rates are better but unavailable to many Iranian individuals and businesses.

    Many stores have closed as traders shuttered their businesses in protest and joined the demonstrations.

    The poor state of the economy may not be the only factor driving the renewed protests in Iran.

    Crowds were also chanting “death to the dictator,” a slogan often heard during the mass nationwide Women, Life, Freedom protests that rocked the country in 2022.


    Protests on December 31 in Fasa, a city in Fars Province in southern Iran. Courtesy photo supplied by RFE/RL. Public Domain.

    Against this backdrop, the prospect of further strikes by Israel appears to have increased following Netanyahu’s visit to Florida.

    “They know the consequences. The consequences will be very powerful, maybe more powerful than the last time,” Trump said, referring to the 12-day war in June, when Israel and the United States launched a bombing campaign targeting Iranian nuclear and military sites.

    “To some extent Netanyahu has shifted the focus, spotlighting the missile threat as the next frontier of confrontation and as justification for potential military action,” Sanam Vakil, head of the Africa and Middle East program at the London-based Chatham House think tank, told RFE/RL.

    “This does not make military strikes more likely on their own, but it broadens the list of possible triggers and rationales for future action…. Heavy blows to military infrastructure could rally nationalist sentiment around the regime, even as they exacerbate economic and political pressures,” she added.

    Officials in Tehran have responded to the twin challenges with threats and appeals.

    Ali Shamkhani, a senior adviser to Supreme Leader Ayatollah Ali Khamenei, responded to the comments by saying any attack on Iran would prompt “an immediate harsh response.”

    Pezeshkian has said he had asked the Interior Ministry to listen to protesters’ “legitimate demands through dialogue with their representatives.”

    Via RFE / RL

    Copyright (c)2025 RFE/RL, Inc. Used with the permission of Radio Free Europe/Radio Liberty

    Filed Under: Dissent, Iran

    About the Author

    Radio Free Europe Radio Liberty RFE/RL journalists report the news in 23 countries where a free press is banned by the government or not fully established. We provide what many people cannot get locally: uncensored news, responsible discussion, and open debate. RFE/RL strives to meet the highest standards of objective journalism and report the facts, undaunted by pressure or attempted influence​. RFE/RL is registered with the IRS as a private, nonprofit Sec. 501(c)3 corporation, and is funded by a grant from the U.S. Congress through the United States Agency for Global Media (USAGM) as a private grantee. RFE/RL's editorial independence is protected by U.S. law.

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