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Protests over Iran’s soaring cost of living have spread to several universities, with students joining shopkeepers and bazaar merchants, semi-official media reported, as the government offered dialogue with demonstrators.
Iran’s rial currency has lost nearly half its value against the dollar in 2025, with inflation reaching 42.5 per cent in December in a country where unrest has repeatedly flared in recent years and which is facing US sanctions and threats of Israeli strikes.
President Masoud Pezeshkian said in a social media post late on Monday that he had asked the interior minister to listen to “legitimate demands” of protesters. Government spokesperson Fatemeh Mohajerani said a dialogue mechanism would be set up and include talks with protest leaders.

In a significant acknowledgment of civil unrest, a government official announced on Tuesday that authorities are aware of the ongoing protests and understand these demonstrations stem from mounting pressures on people’s daily lives. The remarks, relayed through state media, highlight the government’s recognition of the grievances voiced by the public.

The semi-official Fars News Agency reported that hundreds of students took to the streets in protest at four universities in Tehran, marking a notable surge in student activism within the capital.

Video of protests, verified by Reuters news agency as taking place in Tehran, showed scores of people marching along a street chanting “Rest in peace Reza Shah”, a reference to the founder of the royal dynasty ousted in the 1979 Islamic revolution.
Footage aired on Iranian state television on Monday showed people gathered in central Tehran chanting slogans.

During a meeting with trade unions and market leaders, Pezeshkian assured attendees that the government is committed to addressing their concerns and alleviating their issues. This pledge, reported by state media, reflects the administration’s intent to tackle the root causes of the unrest.

On social media, some Iranians voiced support for the protests with one, Soroosh Dadkhah, saying high prices and corruption had led people “to the point of explosion” and another, Masoud Ghasemi, warning of protests spreading across the country.
Iranian authorities have quashed previous bouts of unrest that have flared over issues ranging from the economy to drought, women’s rights and political freedoms, with violent security actions and widespread arrests.
The government has not said what form dialogue will take with the leaders of this week’s demonstrations, the first major protests since Israeli and US strikes on Iran in June, which prompted widespread expressions of patriotic solidarity.

Underlying these protests are significant economic inequalities that separate everyday Iranians from the ruling clerical and security elites. Issues like economic mismanagement and corruption, even acknowledged in state reports, have exacerbated public dissatisfaction. This discontent is further intensified by soaring inflation, which has rendered many basic goods unaffordable for the majority.

In 2022, Iran witnessed widespread protests triggered by drastic price hikes, particularly affecting essential commodities such as bread. These demonstrations underscored the critical economic challenges facing the nation and the urgent need for governmental action.

Iran’s economy has been in deep trouble for years after US sanctions were reimposed in 2018 when US President Donald Trump ended an international deal over the country’s nuclear program during his first term in office.
United Nations sanctions on the country were reimposed in September and Reuters reported in October that several high-level meetings had been held on how to avert economic collapse, circumvent sanctions and manage public anger.

Economic disparities between ordinary Iranians and the clerical and security elite, along with economic mismanagement and state corruption — reported even by state media — have fanned discontent at a time when inflation is pushing many prices beyond the means of most people.

The currency slid to 1.4 million rials to the US dollar on Tuesday according to private exchange platforms, a record low after starting the year at 817,500 rials to the dollar.
Monthly annualised inflation figures have not dropped below 36.4 per cent since the Iranian new year started in late March according to official figures.
On Monday the central bank chief resigned with Iranian media saying the government’s recent economic liberalisation policies had put pressure on the open-rate rial market, where ordinary Iranians buy foreign currency. Most businesses use official currency exchanges where the rial price is supported.

In 2022, Iran was buffeted by protests across the country over price hikes, including for bread, a major staple.

Over the same period and into 2023, the country’s clerical rulers faced the boldest unrest in years touched off by the death of a young Iranian Kurdish woman, Mahsa Amini, in the custody of the morality police, who enforce strict dress codes.
Iran remains under intense international pressure, with Trump saying on Monday that he might back another round of Israeli airstrikes if Tehran resumed work on ballistic missiles or any nuclear weapons program.
The US and Israel carried out 12 days of airstrikes on Iran’s military and its nuclear installations in June aimed at stopping what they believe were efforts to develop the means to build an atomic weapon.
Iran says its nuclear energy program is entirely peaceful and that it has not tried to build a nuclear bomb.

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