For days now, thousands of people in Iran they are protesting against the dramatic decline in the value of the currency and the historic economic crisis. What started as a tradesman's strike is increasingly turning into political anger, going so far as to hear slogans like "Death to the dictator". Protests have long since spread from Tehran to cities like Isfahan, Mashhad and others. There are also dead people.
Here's what you should know about what's happening in Iran.
Is the current currency collapse an inflationary crisis?
For one US dollar, Iranians now have to pay about 1,45 million rials. A year ago, the exchange rate was around 820.000 rials. The average Iranian now receives barely more than $100 for a full monthly salary. The consequence of that is that the purchase of basic groceries swallows up the entire salary.
In a country dependent on imports, such an inflationary shock immediately causes social instability. Human rights lawyer, Gisu Nia of the Atlantic Council, sees the cause in the economic decline, but not the essence of the protests: "Similar to the protests since December 2017, there is often an economic trigger. But if you listen to the slogans and see the scale of the protests, it is about a deep dissatisfaction with the regime and a desire for that regime to disappear."
Many Iranians apparently no longer see the economic collapse as a passing crisis, but as a systemic failure of the regime around aging Supreme Leader Ali Khamenei.
How are these protests different from previous ones?
The protests at the end of 2025 unite several waves of discontent. As in 2017 and 2019, it is about social rebellion, the experience of extreme violence (as in 2019) and cultural systemic criticism (as in 2022). That synthesis increases the range and sustainability of the movement.
In an interview with DW, an expert on Iran, Gisu Nija, points out the radicality and continuity of the slogans: "One hears messages like 'Zan, Zendeggi, Azadi' - which means woman, life, freedom - in the spirit of the 2022 protests. One also hears 'Death to the dictator'. The regime must go."
Demands for reforms have almost disappeared - the system itself has become a target. The movement relies on a common repertoire that politically connects different generations.
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What role does the bazaar play?
The bazaar has been the economic backbone and political pillar of the system's stability for decades. It is considered a political early warning system and a potential multiplier of protests. The Islamic Revolution of 1979 also began with strikes in the bazaar.
Strikes in the bazaar affect not only the supply, but also the conservative backbone of the Republic. Nia speaks of "the bleeding of central Iranian markets. Shop owners and others have gathered to protest because the economic situation is unsustainable."
How much room for maneuver does President Peshekian have?
Masoud PezeshkianPresident of Iran Massoud Peshekian / AP Photo/Vahid Salemi)
Massoud Peseshkian actually has very little political space to meet the protesters. In a rare moment of candor, the president admitted: "If the problems are not solved, we will not be able to govern." It is almost a political admission of impotence. With the announced replacement of the head of the Central Bank, it will be difficult for the people to calm down.
The draft budget for 2026 foresees a tax increase of 62 percent, while inflation is 50 percent. On the street it is perceived as robbery. Public reactions show that Iranians no longer distinguish between "reformists" and "hardliners", but have lost confidence in the entire political elite.
How much does the crisis affect the population?
The economic crisis has long since become a social and infrastructural crisis. Savings are devalued, food and medicine are barely available, and water and electricity outages are becoming more frequent. It is no longer only marginalized groups that are affected, but also the wider urban middle class.
"The reality is that people can't afford food. They can't pay for many things anymore," Gisu Nija analyzed in an interview with DW. Water has been regularly shut off in cities for some time. It facilitates political mobilization. Those who have nothing material to lose are more willing to accept the risk of state violence.
Why are criticisms directed at foreign policy?
For decades, the Islamic Republic has poured billions into its "Axis of Resistance," securing the loyalty of militias in Lebanon, Yemen and Gaza. Protests are now explicitly turning against such regional interventionist policies - thus breaking the ideological taboo. Nia explains: "There is a rejection of the foreign policy of the Islamic Republic of Iran. The slogan: Neither Gaza nor Lebanon - my life for Iran."
The nationalization of protest shows that loyalty is no longer based on religion or transnational ideas, but on the welfare state. Every dollar that goes to Hezbollah or Hamas is seen as theft from its own people.
How can the regime stop the protests?
The political leadership in Tehran is sending reassuring signals, while security forces have begun to crack down violently on the protests. Unlike previous waves of protests, the regime is trying to intimidate the movement with violence at an early stage - indicating a great deal of nervousness. Gisu Nija says: "We see videos of security forces using tear gas. We also see shooting at peaceful protesters."
The regime is in a difficult situation: the earlier it uses violence, the more clearly it shows its weakness. However, the usual repressive patterns no longer act as a deterrent, but rather confirm to many protesters that the regime cannot offer any political solutions.
What role do foreign intelligence services play?
The Iranian regime has previously attributed the protests to the actions of foreign services. The US and arch-enemy Israel, whose right to exist is contested by the Iranian authorities, were the primary targets.
After Israel's Mossad intelligence service publicly called for support for the protests, Iran's state media and security authorities are once again pushing the narrative of "externally-led destabilization." But neither the speed nor the social breadth of mobilization can be realistically controlled from the outside. For many Iranians, invoking 'foreign conspiracies' does not confirm strength, but the leadership's escape from reality.
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