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Iran Warns of “Decisive Response” as Economic Protests Spread
Iranian authorities warn protesters amid nationwide demonstrations over plummeting rial and rising living costs, while the government pledges to address legitimate grievances.
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by Muhammad Hashir
2025-12-31
Iran Warns of “Decisive Response” as Economic Protests Spread

Iran’s prosecutor general has issued a stern warning of a “decisive response” if economic protests sparked by a collapsing currency and worsening living conditions destabilise the country, following demonstrations that spread from Tehran to multiple cities.

Mohammad Movahedi-Azad, reported by state media on Wednesday, stressed that while peaceful protests are legitimate, any attempts to create insecurity, damage public property, or follow externally designed agendas will face “legal, proportionate and decisive” measures.

The protests began on Sunday when shopkeepers near Tehran’s Jomhouri area and the Grand Bazaar closed their businesses in protest against the rial’s record low against the U.S. dollar. The unrest quickly spread to universities and institutions in cities including Isfahan, Yazd, and Zanjan, with students joining the demonstrations.

The Iranian currency has plummeted in recent weeks, trading at around 1.42 million rials per U.S. dollar compared with 820,000 a year ago, amid renewed Western sanctions and diplomatic pressures related to Iran’s nuclear program. Inflation is estimated at 50 percent, exacerbating import costs and the cost of living.

In response, a government spokesperson reaffirmed the state’s commitment to listening to protesters’ concerns. “The government will listen patiently, even if there are harsh voices… Our people are patient enough, and when their voices are raised, the pressure that is being put on them is high,” Fatemeh Mohajerani said. She emphasised recognition of the right to peaceful assembly.

President Masoud Pezeshkian met with labour leaders on Tuesday, pledging to protect livelihoods and instructed officials to consider the protesters’ “legitimate demands,” according to the semi-official Mehr News Agency. The government has also replaced the head of the central bank amid the mounting economic crisis.

Observers note a complex situation: while citizens are primarily concerned with economic hardships, Iran faces multiple additional crises including an energy crunch, severe water shortages, and internet restrictions. Trita Parsi of the Quincy Institute for Responsible Statecraft noted that public confidence in the government’s ability to resolve these problems is low, partly due to officials’ own statements acknowledging the limits of their powers.

Experts warn that while the protests are currently motivated by economic grievances, there is potential for them to broaden into wider social and political demands, as seen in previous nationwide protests in 2022 and 2023 following the death of Mahsa Amini.

The coming days will be critical in determining whether the demonstrations remain focused on the economic crisis or escalate into a broader expression of public discontent against Iran’s theocratic leadership.
Tagged:

IranProtests

IranEconomy

RialCrisis

TehranProtests
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