Economic Crisis Triggers Widespread Protests in Iran; Seven Killed in Clashes

Tehran: Iran has been rocked by a fresh wave of widespread protests triggered by a worsening economic crisis marked by soaring inflation and a sharp collapse of the national currency.

Over the past two days, clashes between demonstrators and security forces across several provinces have left at least seven people dead. Observers describe the unrest as the most significant since the nationwide protests that erupted in 2022 following the death of Mahs*a Amini.

The protests have been particularly intense in western and southwestern parts of the country, especially in regions largely inhabited by the Lur ethnic community. Public anger has been fuelled by the rapid deterioration of living conditions, with many citizens struggling to cope with rising prices and declining incomes.

20/ Meanwhile, videos circulating on social media show security force crackdowns in places including Lordegan, Hamedan, and Lorestan and violent clashes.

In Azna, Lorestan, a police station was reportedly attacked, with gunfire heard. pic.twitter.com/7zDBP0muot

— Sina Toossi (@SinaToossi) January 1, 2026

A major factor behind the unrest is the collapse of Iran’s currency. The rial has lost nearly one-third of its value against the US dollar over the past year, with the exchange rate now standing at around 1.4 million rials per dollar. This steep depreciation has severely weakened purchasing power and added to the financial strain on ordinary households.

Inflation has further compounded the crisis. According to December estimates, Iran’s inflation rate has reached 52 per cent, pushing the prices of essential goods beyond the reach of many. Shopkeepers, students and low-income workers have been among those taking to the streets to voice their frustration.

Several areas have emerged as flashpoints. In Asna, located in Lorestan province, some of the most violent clashes were reported, with protesters attacking a police station and setting vehicles on fire. Gunfire and stone-pelting during the confrontations resulted in multiple deaths and left more than 15 people injured.

In Lordegan, a town with a history of protest-related unrest, demonstrators targeted government buildings, including the governor’s office and banks. Authorities have confirmed that at least two people were killed in the clashes there. Meanwhile, in Kuhdasht, a 21-year-old member of the Basij paramilitary force, affiliated with the Islamic Revolutionary Guard Corps, was killed during an attack by protesters.

President Masoud Pezeshkian has acknowledged the legitimacy of public grievances, warning in a televised address that failure to resolve livelihood issues could have severe consequences for the country. At the same time, he indicated that the government faces significant limitations in addressing the deep-rooted economic challenges.

Security forces have responded with a crackdown aimed at restoring order. More than 50 people have been arrested in areas including Mardard and Kuhdasht. Authorities have claimed that some of those detained have links to foreign entities, a charge often levelled during periods of internal unrest.

The developments have drawn international attention. The United States State Department expressed concern over reports of arrests and alleged human rights violations, urging Iranian authorities to respect the right of citizens to peacefully express their demands. The latest protests come amid heightened political and economic uncertainty following last year’s conflict with Israel and ongoing tensions over Iran’s nuclear programme, raising fears of further instability in the country.