Protests over currency crisis mount in Iran

What began as a strike by merchants in Tehran has quickly escalated into nationwide protests and deadly clashes with security forces across Iran. Since Sunday, demonstrators have taken to the streets in more than 30 cities, turning an economic protest into broader political unrest, reports the Middle East Eye.

At least seven protesters have been killed and dozens more injured as demonstrations continue.

The strikes started in Tehran's Grand Bazaar, a historic hub where merchants have long supported the country's religious institutions and ruling authorities.

Their standoff with the government created space for other Iranians to join the streets and voice opposition to their rulers.  Middle East Eye examines how the protests began, how they spread, and the authorities' response. Small protests began on Sunday in central Tehran, near the Alaedin mobile phone market and Sabzeh Meidan, the hub of Iran's open currency market. 

Shopkeepers in the Grand Bazaar, known locally as bazari, soon closed their stores in solidarity.

The demonstrations were sparked by sharp swings and instability in the exchange rate. 

The Iranian Rial has been falling steadily against the US dollar for months, driving up inflation and prices. 

By Sunday, one dollar was trading at around 1.45 million Rials on the open market, compared with about 55,000 Rials in 2018, when US sanctions were reimposed. As shops closed, electronic exchange boards that usually display currency rates went blank. Traders in Tehran told customers: "We don't trade."

The dollar rate is a key indicator of Iran's economic health, where the collapse of the rial has become part of daily life. Analysts point to US sanctions on Iran's oil, gas and petrochemical exports, international banking restrictions and widespread corruption as the main drivers of the crisis. The Rial's fall accelerated after Israel attacked Iran in June 2025, followed by US strikes on nuclear sites. By the end of the 12-day war, one dollar was trading at around 850,000 Rials in the open market.