Recent reports suggest that Iran is advancing its efforts to create chemical and biological warheads for its ballistic missiles. This development comes amidst significant internal turmoil, as the nation grapples with a plummeting currency and rising inflation, according to an exclusive report by Iran International released on Sunday.

The report, which draws on information from undisclosed military and security sources, indicates that Iran’s Islamic Revolutionary Guard Corps has been intensifying its work on unconventional missile payloads while also enhancing its command-and-control systems. If these claims hold true, they could trigger heightened concerns in both Washington and Israel, especially as Iran faces escalating domestic dissatisfaction.

This information emerges as Israeli Prime Minister Benjamin Netanyahu prepares for discussions with President Donald Trump, where Iran’s missile initiatives and regional security issues will be central topics. According to insights from Israeli and U.S. officials, the meeting will also likely cover the ongoing conflict in Gaza, with U.S. representatives expressing concern that Netanyahu has been slow to implement a postwar strategy and ceasefire measures.

A military vehicle showcasing a missile passes by a portrait of Iran’s Supreme Leader Ayatollah Ali Khamenei during an annual military parade, as captured by photographer Atta Kenare for AFP/Getty Images.

According to Iran International, missile infrastructure has been repositioned and expanded, with some launch assets reportedly moved to eastern Iran to reduce vulnerability. The report claims the IRGC is exploring nonconventional warhead configurations for long-range missiles.

Tehran has long denied pursuing chemical or biological weapons, insisting its missile program is defensive. Iran is a signatory to the Chemical Weapons Convention, though Western governments have repeatedly accused the Islamic Republic of violating international norms.

Iranian missiles exhibited in a park on Jan. 20, 2024 in Tehran, Iran. Iran has been a key player in several overlapping regional conflicts, with its recent airstrikes in Iraq, Syria and Pakistan, and its support of Hamas in Gaza, Hezbollah in Lebanon, and the Houthi movement in Yemen. (Majid Saeedi/Getty Images)

The missile report coincides with escalating economic unrest inside Iran. Iran International reported Monday that shopkeepers in Tehran shut down major markets for a second consecutive day, protesting inflation and the collapse of the national currency.

A video from Tehran posted on Simay Azadi’s TV X page on Monday showed a large crowd marching in the streets and chanting slogans against the regime.

An Iranian opposition group, the National Council of Resistance of Iran, said the strikes spread across multiple commercial districts, including the Gold Bazaar and central arcades, with crowds gathering in surrounding streets. The group also claimed security forces linked to the IRGC were placed on heightened alert in Tehran, with additional units on standby in nearby provinces. The claims could not be independently verified.

People light a fire during a protest over the death of Mahsa Amini, a woman who died after being arrested by the Islamic republic’s “morality police”, in Tehran, Iran, on Sept. 21, 2022. (West Asia News Agency)

In a statement, Maryam Rajavi, NCRI president-elect, said the protests reflected public anger over high prices, inflation and political repression, and called on Iranians to support the striking merchants.

The Iranian rial has fallen to a new record low against the U.S. dollar. Official data show year-on-year inflation reached 52.6% in December, while average annual inflation was 42.2%. Videos circulating online show chants against government officials and growing frustration among merchants, a group traditionally viewed as a key pillar of regime support.