Iran has recently witnessed a new wave of protests spreading across several cities, driven primarily by deep economic stress rather than organized political movements. The demonstrations include shop owners in traditional bazaars, workers, students, and young people, reflecting widespread frustration across different social groups.
At the core of the unrest lies a severe economic crisis. Inflation has reached around 45% annually, while the Iranian rial has sharply depreciated, falling from roughly 430,000 rials per US dollar in early 2024 to nearly 600,000 rials by early 2026 in the parallel market. This collapse has significantly eroded purchasing power, pushing the cost of basic goods such as bread, rice, oil, and meat up by 50% to 80%.
Income levels have failed to keep pace with rising living costs. The effective minimum monthly wage is estimated at only $80–90, while the cost of living for a small family ranges between $400 and $500. This growing gap has placed intense pressure on households and small businesses, particularly in Iran’s bazaars, which have historically been sensitive indicators of economic and social tension.
While the protests are largely rooted in domestic economic hardship and dissatisfaction with governance, the situation has also attracted international attention. Statements of support from foreign political figures have fueled debate inside Iran over external involvement, even as the primary drivers of unrest remain internal and structural.
Overall, the current protests highlight a critical moment for Iran, where economic instability, social frustration, and geopolitical tensions intersect — creating a volatile environment with uncertain outcomes.
