Iran protests swell as currency falls and universities join unrest

Protests over Iran's rising cost of living have spread to several universities in Tehran, with students joining bazaar merchants and shopkeepers as the rial hit record lows and inflation persisted above 42%.

Demonstrations in Tehran intensified on Tuesday as students marched alongside traders and market workers in the city's main commercial areas, demanding action from the government amid a steep currency decline and soaring prices. Local footage verified as filmed in Tehran showed crowds walking through the streets, chanting "Rest in peace Reza Shah", a rare royalist slogan referencing the dynasty removed after the 1979 Islamic revolution. State television also aired images of people gathering in central districts.

President Masoud Pezeshkian called for officials to listen to "legitimate demands" and government spokesperson Fatemeh Mohajerani announced plans for a dialogue mechanism including talks with protest representatives. Authorities have moved to acknowledge the public anger, noting livelihoods have been under severe strain. However, there has been no clarity on what form the negotiation process may take.

The unrest is unfolding as Iran faces deepening economic pressure. The rial slid to 1.4 million to the U.S. dollar on private exchange platforms, compared to 817,500 at the start of the year, marking a record low. Official figures show inflation has remained above 36.4% throughout the current Iranian year, while monthly annualised inflation reached 42.5% in December. On Monday the central bank governor resigned amid criticism that recent economic liberalisation had fuelled volatility in the open currency market.

Social media users voiced frustration over prices and corruption, warning that public patience was near breaking point. Semi official media reported student gatherings across four major universities on Tuesday, marking the first large scale demonstrations since strikes carried out by Israel and the U.S. in June. Previous rounds of protest in recent years, including the movement sparked by the death of Mahsa Amini in custody and price hike demonstrations in 2022, were met with force and widespread detentions.

Iran’s economic downturn has been aggravated by sanctions reimposed in 2018 after the nuclear deal collapsed under Donald Trump's first term. United Nations restrictions returned in September, as policymakers sought ways to prevent further economic deterioration and contain public anger. Disparities between the clerical elite and ordinary citizens, alongside mismanagement and reports of corruption even in state media, have added to resentment.

Pezeshkian told unions and market figures that the government would work to address concerns, yet whether dialogue can ease tensions remains uncertain as calls for relief continue to widen across the capital and beyond.

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