Shopkeepers in Tehran’s Grand Bazaar launched a strike on Sunday after the Iranian rial plunged to a record low on the open market, triggering a third day of protests and strikes that have spread from the capital to at least eight other cities. Verified video posted by BBC Persian shows demonstrations in Karaj, Hamedan, Qeshm, Malard, Isfahan, Kermanshah, Shiraz and Yazd, where police used tear gas to try to disperse crowds. Iran’s government signalled it recognised the protests and said it would listen to grievances, while President Masoud Pezeshkian ordered talks with protest representatives and accepted the central bank governor’s resignation. The unrest has attracted international attention, with Iranian exiled figures and US accounts expressing support and global leaders commenting on Iran’s economic and security situation.
Key Takeaways
- Protests and strikes began Sunday in Tehran’s Grand Bazaar after the rial hit a record low versus the US dollar on the open market.
- Demonstrations verified by BBC Persian were recorded in at least eight other cities: Karaj, Hamedan, Qeshm, Malard, Isfahan, Kermanshah, Shiraz and Yazd.
- Police were filmed deploying tear gas in several locations as crowds included shopkeepers, university students and other residents chanting antigovernment slogans.
- President Masoud Pezeshkian accepted the central bank governor Mohammadreza Farzin’s resignation and appointed Abdolnasser Hemmati as his replacement.
- Pezeshkian said he had instructed the interior minister to open talks with representatives of the protesters to seek solutions.
- Some protesters chanted pro-monarchist slogans referencing the late Shah’s son; Reza Pahlavi, who lives in exile, expressed support on X.
- The US State Department’s Persian-language account publicly praised protesters’ courage, and US President Donald Trump made public comments about Iran’s economic troubles and potential military responses.
Background
Iran’s economy has faced persistent inflation and currency instability for years, exacerbated by international sanctions, domestic policy challenges and recent geopolitical tensions. The rial’s fall to a fresh low on the open market intensified long-standing public frustration, particularly among small traders and merchants who feel the immediate effects of currency-driven price increases. Tehran’s Grand Bazaar has historically been a focal point for economic protest and political expression in Iran; strikes there can quickly ripple to other sectors and cities. The current unrest follows a period of heightened regional tensions and public sensitivity to both economic hardship and perceived political mismanagement.
Within the Iranian political system, the president and cabinet manage daily governance while the supreme leader retains ultimate authority over security and key policy areas. That division shapes how protest responses and economic decisions are framed and communicated. Resignations at high economic posts, such as a central bank governor, are a conventional reaction to acute financial crises but do not by themselves restore market confidence without broader policy measures. External actors and diaspora figures often comment on internal events, influencing public narratives but not directly changing on-the-ground dynamics.
Main Event
The disturbances began when shopkeepers in Tehran’s Grand Bazaar stopped trading in protest at the rial’s sharp depreciation. Video authenticated by BBC Persian shows marches and gatherings during the third consecutive day of unrest, with demonstrators carrying placards and chanting slogans that included both antigovernment phrases and, in some cases, calls supporting the son of the late Shah. Security forces were deployed in multiple cities; footage shows officers using tear gas as an attempt to break up assemblies.
On Monday evening President Masoud Pezeshkian said he had instructed the interior minister to hold talks with what he described as representatives of the protesters, framing the approach as patient engagement even when voices are harsh. The government also announced the resignation of central bank governor Mohammadreza Farzin, replacing him with former economy and finance minister Abdolnasser Hemmati, a veteran technocrat. Officials presented the moves as steps to stabilise markets and open channels for grievance redress, while critics said they were insufficient to address structural economic problems.
University students joined demonstrations in several cities, amplifying chants and making the unrest visibly cross-generational. Some participants and social media posts invoked monarchist slogans, prompting statements of solidarity from Reza Pahlavi in exile. International commentary intensified the story: the US State Department’s Persian-language account publicly praised protesters, and remarks from other foreign leaders and officials referenced Iran’s economic state and security posture.
Analysis & Implications
The immediate trigger—a precipitous fall of the rial—reflects both short-term market reactions and deeper structural weaknesses: chronic inflation, foreign-exchange shortages, and constrained fiscal capacity. A central bank governor’s resignation is a predictable political response that signals acknowledgement of the crisis but typically has limited short-term impact unless accompanied by credible policy changes, liquidity support and confidence-building measures. Appointing a former finance minister may buy time with markets and some business actors, but lasting stabilization requires transparent policy coordination and visible delivery on reforms.
Politically, the protests test the government’s ability to manage economic discontent without ceding core authority. The involvement of students and merchants increases the risk of broader mobilization; authorities face a trade-off between forceful suppression, which risks escalation, and concessions, which may be seen as encouraging further demands. The administration’s public pledge to listen and to open talks is intended to de-escalate, but outcomes will depend on whether those talks produce tangible, swift measures that ease household costs and currency pressures.
Regionally and internationally, such unrest can influence foreign policy calculations. External actors’ public remarks—ranging from expressions of support for protesters to statements about potential military options if Iran advances certain programs—can harden domestic rhetoric and affect diplomatic postures. If protests persist or expand, economic disruption could ripple into supply chains and cross-border commerce, while hardline responses could heighten geopolitical tensions.
Comparison & Data
| Item | Reported |
|---|---|
| Cities with verified protests | Tehran, Karaj, Hamedan, Qeshm, Malard, Isfahan, Kermanshah, Shiraz, Yazd |
| Central bank change | Mohammadreza Farzin resigned; Abdolnasser Hemmati appointed |
| Noted triggers | Rial hit record low on open market; Grand Bazaar strike |
The table summarises verified reporting points: the geographic spread, the personnel change at the central bank, and the immediate economic trigger. While the data above are factual as reported by BBC Persian and government statements, detailed macroeconomic figures such as the exact rial-to-dollar rate at the time of the record low are not published here and would be needed for comprehensive economic modelling and market forecasting.
Reactions & Quotes
The government said it “recognises the protests” and will listen “with patience, even if it is confronted with harsh voices.”
Iranian government statement
Authorities framed their response as a willingness to engage while signalling they will preserve order. Officials presented the central bank governor’s resignation as part of remedial action aimed at calming markets.
I am with you. Victory is ours because our cause is just and because we are united.
Reza Pahlavi (exiled figure)
Reza Pahlavi’s public support emphasises the role of diaspora leadership in amplifying protests, a dynamic that can bolster morale among some demonstrators while provoking counterclaims from regime-aligned figures.
They’ve got a lot of problems: tremendous inflation, their economy is bust.
Donald Trump, US President
International commentary, including from the US president, reiterated concerns about Iran’s economic condition and linked those concerns to broader security and policy debates, which in turn shape media coverage and diplomatic responses.
Unconfirmed
- The full scale and duration of planned nationwide strikes is not independently verified beyond the cities where video evidence exists.
- Allegations of foreign-directed coordination of protests have not been substantiated in available reporting and lack corroborating public evidence.
- The immediate market impact of the central bank governor’s resignation on the rial and inflation expectations remains to be confirmed by financial data released after this report.
Bottom Line
The protests that began in Tehran’s Grand Bazaar after the rial hit a record low have spread to multiple cities and brought together merchants, students and other citizens, highlighting the depth of economic frustration in Iran. Government steps — a pledge to engage protesters and the replacement of the central bank governor — aim to calm markets and public anger, but they are unlikely to resolve structural economic stresses without a package of credible fiscal and monetary measures.
How the situation evolves will depend on three factors: whether talks produce quick, tangible relief for households; the authorities’ chosen blend of restraint and enforcement; and the degree to which international commentary and regional security dynamics affect domestic calculations. For now, the protests underline that economic shocks can rapidly become political crises in a context of long-running public grievances.