Tehran Erupts in Protest as Rial Plummets, Inflation Soars: Government Urges Dialogue Amid Economic Turmoil

December 29, 2025
Tehran Erupts in Protest as Rial Plummets, Inflation Soars: Government Urges Dialogue Amid Economic Turmoil
  • 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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