Iran protests spread as rial hits record low
Iranian traders and shopkeepers staged a second consecutive day of protests on Monday after the country’s currency plunged to a new historic low against the U.S. dollar, deepening economic anxiety across the country.
Witnesses told The Associated Press that hundreds gathered in central Tehran, including Saadi Street and the Shush district near the capital’s Grand Bazaar. Many merchants reportedly closed their shops and urged others to stop trading, a significant signal of discontent in a sector that has historically played a powerful political role in Iran, News.Az reports, citing ABC News.
Videos circulating on social media showed crowds rallying peacefully, while security forces maintained a heavy presence. There were no reports of police raids, according to witnesses, though tensions remained high.
Iran’s rial fell to 1.42 million per dollar on Sunday, before slightly recovering to around 1.38 million on Monday. The sharp depreciation has intensified inflationary pressures, driving up the cost of food, healthcare, and daily necessities, and further straining household budgets.
Official data underscore the scale of the crisis. Iran’s annual inflation rate reached 42.2% in December, up from November, with food prices surging 72% and health-related costs rising 50% year-on-year. Critics warn these trends point toward approaching hyperinflation, particularly as recent fuel price changes ripple through the economy.
Economic uncertainty has been amplified by reports that the government plans to raise taxes in the Iranian new year starting March 21, as well as fears of renewed regional conflict. Market sentiment remains fragile following September’s reimposition of U.N. nuclear-related sanctions, which froze Iranian assets abroad and restricted arms and missile-related activities.
The rial’s collapse marks a dramatic reversal from 2015, when it traded at about 32,000 to the dollar after Iran’s nuclear deal with world powers. That agreement unraveled after the U.S. withdrawal in 2018, setting off years of sanctions and economic decline that continue to shape Iran’s financial crisis today.
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