Iran’s long-running economic crisis has reached a breaking point after the national currency fell to a record low, making even basic necessities unaffordable for large segments of the population. The situation worsened following the war launched by Israel in June, during which the United States bombed nuclear sites in Iran and the United Nations re-imposed sanctions over Tehran’s nuclear program.
These developments triggered a sharp collapse of the rial, now trading at more than 1.4 million to the US dollar, deepening the damage caused by years of Western sanctions. As inflation surged and the currency weakened, Central Bank Governor Mohammad Reza Farzi resigned in December.
The currency crash, rising prices, and political tensions sparked protests in late December, with shopkeepers taking to the streets of Tehran to denounce what they describe as government mismanagement. The unrest soon widened into a broader movement, drawing in students, workers, and other groups demanding not only better living conditions but also an end to the Islamic Republic system led by Supreme Leader Ayatollah Ali Khamenei.
