A new wave of protests has erupted across Iran, driven by mounting frustration over living costs, shrinking purchasing power, and economic uncertainty. Demonstrations were reported in Tehran and multiple provincial cities as traders, shopkeepers, and residents voiced anger over daily hardships rather than issuing overt political demands.

The protests mark the most significant street unrest since 2022, underscoring how economic grievances continue to act as the primary mobilizing force in the country. While initially concentrated in commercial districts, gatherings quickly spread to other neighborhoods, reflecting broad-based social discontent.

Markets, Merchants, and City Centers

In Tehran, protests were reported near the Grand Bazaar, a symbolic and historically influential center of collective action. Traders and shopkeepers were seen closing stores and encouraging others to do the same, amplifying the visibility of the demonstrations. Similar scenes were reported in cities including Isfahan, Shiraz, and Mashhad.

State media described the protests as limited, but videos shared online suggested larger crowds and coordinated actions. In several locations, security forces intervened to disperse demonstrators, with reports of tear gas use in parts of the capital.

Cost of Living Pressure

At the core of the unrest is sustained pressure on household finances. Inflation remains above 40%, while prices for basic food items have risen by more than 70% over the past year. Health and medical costs have increased by roughly 50%, deepening the strain on middle- and lower-income families.

Government proposals to raise public-sector wages and pensions by 20% have failed to reassure many Iranians, as income growth continues to lag far behind rising expenses. Planned tax increases and reduced subsidies have further heightened public anxiety about future living standards.

Authorities Balance Warnings and Dialogue

Iranian officials have responded with a mix of caution and firmness. Prosecutors warned that protests leading to insecurity would face a “decisive response,” while senior government figures said authorities were open to hearing “legitimate demands.” Security deployments increased in protest-prone areas as officials sought to prevent escalation.

At the same time, the government convened emergency economic meetings and accepted the resignation of the central bank governor, signaling recognition of public anger. Analysts say the dual approach reflects concern that economically driven protests can quickly expand beyond narrow grievances, posing a broader challenge to social stability.