Tehran Erupts in Protest as Rial Plummets, Inflation Soars: Government Urges Dialogue Amid Economic Turmoil
December 29, 2025
Authorities and analysts signaled steps to stabilize the foreign exchange market, including new support packages and a convened Economic Coordination Council to curb fluctuations.
Officials described currency hoarding as a crime and pledged strict measures amid calls for reform and inflation control.
Parliamentary leadership urged measures to boost purchasing power and a constructive, dialogic response to livelihood concerns.
Government measures like food vouchers and subsidies offered limited relief against inflation and economic strain.
President Pezeshkian urged dialogue with protesters’ representatives to address legitimate demands and economic problems, directing Interior Ministry to engage with them.
Official December inflation data shows a 42.2% year-over-year rise, with food prices up 72% and health items up 50%, fueling fears of hyperinflation.
The president urged government action and responsible governance, signaling willingness to work with merchant representatives to address the crisis.
Protests erupted in Tehran as the rial tumbled to record lows amid zware sanctions and ongoing economic hardship, with merchants and citizens unsettled by the currency crisis.
Security was tight around demonstrations; some merchants stayed open while others closed or halted trading, and authorities warned against turning economic grievances into political unrest.
Analysts note that crypto assets, including Bitcoin, are being considered as hedges in inflationary environments, though regulation and volatility remain concerns.
Analysts attribute the crisis to inflation, currency depreciation, and political responses, with potential leadership and policy changes on the horizon.
Clashes between protesters and security forces were reported, with tear gas used in some scenes and officials warning against destabilizing gatherings.
Summary based on 37 sources
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Sources

CNN • Dec 29, 2025
Protests erupt in Iran over currency’s plunge to record low
Los Angeles Times • Dec 29, 2025
Iran Central Bank governor resigns as protests erupt over currency drop - Los Angeles Times
AP News • Dec 29, 2025
Iranian traders protest as rial hits record low | AP News
Newsweek • Dec 29, 2025
Iran central bank chief resigns, protests erupt across major cities