On Wednesday (December 31), nationwide protests and strikes broke out due to inflation and currency devaluation, entering the fourth day with civilians attempting to storm local government buildings. The United States State Department expressed support for the protesters and their demands, urging the Iranian government not to suppress the protesters.
The protests began on Sunday (December 28), when shop owners at the Grand Bazaar marketplace in Tehran went on strike after the Iranian currency, the rial, hit a historic low against the US dollar. By Tuesday, the protests had spread to multiple universities in Tehran.
Unlike previous protests, this time the people are demonstrating against high living costs, which have forced the government to agree to engage in dialogue with the protesters, a rare occurrence. The Iranian government stated that they “recognize the protests” and are willing to “listen patiently, even in the face of strong voices”.
Iranian state media reported on Wednesday that “a few hours ago, an organized group attempted to storm the provincial government building in Fasa city, but their attack failed under the intervention of security forces.” The media mentioned that a 28-year-old woman was leading the charge and has since been arrested.
According to local officials cited by the Iranian Tasnim News Agency, four “attackers” have been detained, with three security personnel sustaining injuries during the incident.
A video released by Iranian state media showed a group of people trying to forcibly open the gates of a building. Reuters verified the location where the video was shot, but could not independently confirm the exact timing of the recording.
Iran’s Prosecutor General Mohammad Movahedi-Azad, in an interview with Iranian state media, stated that protest activities are legal, but any attempts to disrupt peace will face a “decisive” response.
The US State Department’s Persian-language account on social media platform X expressed support for the protesters, commending their courage and standing with those seeking dignity and a better future while hoping to end Iran’s years of failed policies and economic mismanagement.
The US State Department expressed deep concern over reports and videos of Iranian peaceful protesters facing intimidation, violence, and arrests. The US government stated, “Demanding basic rights is not a crime. The Islamic Republic (of Iran) must respect the rights of the Iranian people and end the repression.”
In a subsequent post, the US State Department wrote, “First the market, then the students, now the entire nation. The people of Iran stand united. Different lives, same demand: respect our voices and our rights.”
This protest marks the first large-scale demonstration in Iran since the airstrikes launched by Israel and the United States against Iran in June. Previously, Iranian authorities had been responding to public protests through enhanced security measures and mass arrests.
The Wall Street Journal reported that the June war exposed Iran’s inability to protect its people from attacks and revealed the failure of its intelligence agencies to prevent deep Israeli espionage infiltration. This led to a surge in public dissatisfaction with the government, which had already faced criticism for its strict ideological control and poor economic performance.
In the following months of 2025, the Iranian economy experienced an unprecedented spike in exchange rates, with the rial depreciating by 60% against the US dollar, hitting a historical low of around 1.445 million rials per dollar.
Currency devaluation further eroded people’s savings and raised living costs. According to data from the Iranian National Statistics Bureau, the country’s inflation rate in December 2025 reached 42.2%, rising by 1.8% from November. Food prices increased by 72%, and medical supplies saw a 50% year-on-year price hike.
Economic analysts pointed out that Iran’s currency and fiscal policies, poor economic management, long-term budget deficits, and ongoing international sanctions were the main factors contributing to this situation. These conditions directly impacted trade associations, especially import-dependent businesses. Drastic fluctuations in exchange rates have left many businesses unable to price goods, secure supplies, or continue economic activities.
During a joint press conference with Israeli Prime Minister Netanyahu on Monday, US President Trump mentioned that Iran “has a lot of problems: severe inflation, economic collapse, terrible economic conditions, and I know the people aren’t happy.” The President declined to comment on whether he supports a change in the Iranian regime, while warning that if Iran resumes its ballistic missile or nuclear programs, the US may support Israel in launching airstrikes against Iran again.