by Danielle Greyman-Kennard
Clashes have reportedly broken out across multiple streets in Tehran, with authorities using tear gas to disperse the protesters.
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Protests in the Islamic Republic entered a second day as demonstrators voiced anger over the rapidly falling value of the rial, while regime officials blamed the unrest and broader economic decline on what they described as enemy “psychological warfare.”
Shopkeepers in the capital have closed their stores, and mass demonstrations have broken out in response to the rial’s fall. Clashes have reportedly broken out across multiple streets in Tehran, with authorities using tear gas to disperse the protesters, according to footage of the events.
Today in Tehran, shopkeepers poured into the streets because their money is becoming worthless. They are protesting the collapse of Iran’s currency but this is how dictatorships crack.
— Masih Alinejad 🏳️ (@AlinejadMasih) December 29, 2025
When daily survival becomes impossible, fear changes sides.
In 2019, economic collapse turned… pic.twitter.com/jGa9DXJ0nh
Iranian officials blame 'enemy' for protests against declining rial value
IRGC brigadier general Ali-Akbar Pourjamshidian, the security and law enforcement deputy to the interior minister, blamed the fluctuations in foreign exchange markets on “enemy inducements.”"In my opinion, a large part of the currency problems and fluctuations is affected by the psychological atmosphere of the market. The enemy is desperately seeking to take advantage of the created atmosphere,” he reportedly stated. “People should be aware of this issue and not be influenced by the enemy's insinuations. The market should continue its work peacefully, and people should not worry."
A video shared with Iran International showed one protester sitting in the middle of a street in Tehran and refusing to move as motorbike-riding security forces moved in on demonstrators. pic.twitter.com/uic3kBOoPv
— Iran International English (@IranIntl_En) December 29, 2025
A similar claim was released by the IRGC, which issued a statement alleging the dissent is the result of “cognitive warfare, psychological operations, and narrative creation."
“Despair, instilling fear, and encouraging surrender to the enemy in the current circumstances are clear examples of seditious behavior," the IRGC claimed.
The IRGC-affiliated semi-official Tasnim news agency also alleged the protests were in part fueled by accounts associated with the “Zionist regime.”
To international media and Western policymakers:
— nejat.bahrami نجات بهرامی (@nejatbahrami) December 29, 2025
This is the voice of the Iranian people, chanting against the Islamic Republic regime and in support of Crown Prince Reza Pahlavi.#Iran @marcorubio @IsraelMFA pic.twitter.com/gPXlfZDjtw
Iran's currency slipped to the lowest level in its history at the beginning of December, nearing 1,250,000 rial to the US dollar on the open market rate.
Iran appoints former economy minister to head central back, despite previous impeachment
The regime appointed on Monday the former economy minister, Abdolnaser Hemmati, as the new head of the central bank. The official was impeached from his position in Marchof this year after his critics pointed to surging inflation under his supervision.Iran’s parliament voted 182 to 89 in favor of impeachment at the time, and dissident reports indicate that his reappointment has fueled protester anger.
In the eight months Hemmati was minister, Iran’s currency lost nearly half its value against the US dollar, according to some estimates.
Iranian state media also blamed the government's recent economic liberalization policies for adding pressure to the open rate market.
More than the rial: Protesters raise political issues in Tehran protests
The protests also followed the regime’s decision to raise the cost of subsidized fuel. The increase in Iran's gasoline price had long been postponed amid concerns it could spark a repeat of the widespread protests seen in 2019, which were crushed by the state.Iran's economy is at risk of recession, with the World Bank forecasting an economic shrinkage of 1.7% in 2025 and 2.8% in 2026. The risk is compounded by rising inflation, with Iran's Statistical Centre announcing monthly inflation of 48.6% in October, the highest in 40 months.
In addition to the economic issues, demonstrators have begun chanting in support of the exiled Iranian Crown Prince Reza Pahlavi.
May Reza Shah's soul be happy," and "This is not the last battle, Pahlavi will return,” according to recordings circulating online.
Iran International reported that some also yelled, "Death to Khamenei," "Death to the dictator," and "Until the mullah is shrouded, this country will not be a homeland."
Reuters contributed to this report.
Danielle Greyman-Kennard
Source: https://www.jpost.com/middle-east/iran-news/article-881715
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