Protests driven by economic distress intensified across Iran as shopkeepers at Tehran’s Grand Bazaar clashed with security forces, highlighting deep public anger over inflation, a collapsing currency, and the state’s response to dissent.
Iran’s worsening economic crisis spilled onto the streets once again as protests by shopkeepers and citizens continued at Tehran’s iconic Grand Bazaar.
The historic marketplace, long regarded as the country’s commercial and political heartbeat, became the epicentre of unrest as traders shut shops and joined demonstrations against soaring inflation and the rapid collapse of the Iranian rial.
Eyewitnesses reported heavy security deployment, with clashes breaking out between protesters and Iranian security forces.
Videos circulated widely on social media showed chaotic scenes, including protesters throwing gas canisters back at security personnel while tear gas was used to disperse crowds.
Rights groups claim at least 25 people have been killed nationwide since demonstrations began, though Iranian authorities have not officially confirmed the death toll. The situation remains tense, with sporadic protests continuing in Tehran and other cities.
Currency Collapse and Soaring Prices Fuel Protests
At the heart of the unrest lies Iran’s spiralling economic crisis. The national currency has sharply depreciated, eroding purchasing power and pushing prices of essential goods beyond the reach of ordinary citizens.
Shopkeepers at the Grand Bazaar, many of whom rely on imported goods, say volatile exchange rates have made it impossible to price products or sustain businesses.
“We cannot work when prices change every hour,” one trader was quoted as saying by local media. For many Iranians, stagnant wages coupled with rising food, fuel, and housing costs have created unbearable pressure.
Economists note that inflation has surged to levels that disproportionately hurt lower- and middle-income groups, turning everyday survival into a struggle.
The protests are not limited to merchants alone. Students, workers, and pensioners have also joined demonstrations, expressing frustration over unemployment, corruption, and what they perceive as government mismanagement of the economy.
Clashes, Casualties, and Conflicting Narratives
As demonstrations intensified, confrontations between protesters and security forces escalated. Eyewitness accounts describe riot police sealing off parts of the Grand Bazaar, using tear gas and batons to disperse crowds.
Protesters, in turn, reportedly hurled stones and gas canisters during clashes, underscoring the volatile nature of the situation.
Human rights organisations outside Iran estimate that at least 25 people have been killed since the protests erupted, with many more injured or detained. Authorities, however, have downplayed the severity of the unrest, blaming “foreign interference” and “rioters” for the violence.
State media has largely framed the protests as isolated incidents rather than a reflection of widespread economic discontent.
Iranian officials have offered mixed responses-alternating between conciliatory statements and hardline measures. Some government representatives have acknowledged public grievances, stating that economic concerns must be addressed through dialogue.
Others have defended the security crackdown, arguing that maintaining order is essential to prevent chaos.
Why the Grand Bazaar Matters
The choice of the Grand Bazaar as a protest site carries deep symbolic weight. Historically, the bazaar has played a pivotal role in Iran’s political movements, including the 1979 Islamic Revolution.
When bazaar merchants protest, it often signals serious trouble for those in power, as the market represents both economic influence and grassroots legitimacy.
Analysts suggest that unrest in such a politically sensitive location amplifies pressure on the government. “When the bazaar shuts down, it sends a message that the crisis has reached the core of society,” said a Middle East analyst.
The protests there are seen as a barometer of broader public sentiment-one that authorities cannot easily ignore.
Sanctions, Mismanagement, and a Long-Brewing Crisis
Iran’s current turmoil is the result of years of compounding challenges. International sanctions, particularly those linked to Iran’s nuclear programme, have severely restricted trade and access to global financial systems.
While sanctions are a major factor, critics argue that domestic mismanagement, corruption, and lack of transparency have worsened the economic fallout.
Previous waves of protests-in 2017, 2019, and more recently-were similarly sparked by economic grievances. Each time, authorities responded with a combination of limited concessions and heavy-handed crackdowns.
The recurring nature of these protests suggests that underlying structural issues remain unresolved.
Political observers warn that without meaningful reforms, Iran risks entering a cycle of repeated unrest, repression, and further economic decline.
Regional and Global Implications
The unrest in Iran is being closely watched across the region and beyond. As a key player in Middle Eastern geopolitics, prolonged instability within Iran could have ripple effects, impacting energy markets, regional security, and diplomatic negotiations.
International rights groups have urged Iranian authorities to exercise restraint and respect citizens’ rights to peaceful protest.
At the same time, global powers remain cautious, balancing concerns over human rights with strategic interests. Calls for dialogue and de-escalation have grown louder, but tangible international pressure has so far been limited.
1/4 Iran Protests
— The Wonk (@thewonkin) January 2, 2026
Iran's streets boil with rage as economic collapse
Rial hits record low (1 USD ≈ 1.4M rials), inflation at 52%, food prices up 70%
Protests started in Tehran's Grand Bazaar, now in dozens of cities like Isfahan, Hamadan, & holy Qom#IranProtests #وش_القصه pic.twitter.com/u2weu4rXZI
The Logical Indian’s Perspective
Economic despair, when met with force rather than empathy, deepens wounds instead of healing them. The scenes from Tehran’s Grand Bazaar reflect a universal truth: people protest when survival becomes uncertain and voices go unheard.
Governments, regardless of geography, must recognise that lasting stability comes from dialogue, accountability, and inclusive economic policies-not repression.
As citizens demand dignity and fairness amid hardship, the onus lies on those in power to respond with compassion and reform.

