A second day of protests in Iran raged on Monday as demonstrators voiced anger over the rapidly falling value of the rial. Regime officials blamed the unrest and broader economic decline on “enemy psychological warfare.”
Shopkeepers in Tehran closed their stores, and mass demonstrations broke out in response to the rial’s fall. Clashes reportedly occurred across multiple streets in Tehran, with authorities using tear gas to disperse the protesters, according to footage of the events.
Iranian officials blame 'enemy' for protests against declining rial value
Islamic Revolutionary Guard Corps (IRGC) Brig.-Gen. Ali Akbar Pourjamshidian, the security and law-enforcement deputy to the interior minister, blamed the fluctuations in foreign-exchange markets on “enemy inducements.”
“In my opinion, a large part of the currency problems and fluctuations is affected by the psychological atmosphere of the market,” he was quoted as saying. “The enemy is desperately seeking to take advantage of the created atmosphere. People should be aware of this issue and not be influenced by the enemy’s insinuations. The market should continue its work peacefully, and people should not worry.”
The IRGC attributed the dissent to “cognitive warfare, psychological operations, and narrative creation.”
“Despair, instilling fear, and encouraging surrender to the enemy in the current circumstances are clear examples of seditious behavior,” it said.
Iran’s semiofficial Tasnim News Agency said the protests were in part fueled by accounts associated with the “Zionist regime.”
The rial slipped to the lowest level in its history at the beginning of December, nearing 1,250,000 to the US dollar at the open-market rate.
Iran appoints former economy minister to head central back, despite previous impeachment
On Monday, the regime appointed former economy minister Abdolnaser Hemmati as the new head of the central bank. His predecessor was impeached in March due to surging inflation. Hemmati previously served in the position from 2018 to 2021.
Iran’s parliament voted 182-89 in favor of impeachment, and dissident reports indicate that Hemmati’s reappointment has fueled protesters’ anger.
In the eight months Hemmati was economy minister, the rial lost nearly half its value against the dollar, according to some estimates.
Iranian state media also blamed the government’s recent economic liberalization policies for adding pressure to the open-market rate.
More than the rial: Protesters raise political issues in Tehran protests
The protests follow the regime’s decision to raise the cost of subsidized fuel. The increase in Iran’s gasoline price had long been postponed amid concerns it could spark a repeat of the widespread protests seen in 2019, which were crushed by the state.
Iran’s economy is at risk of recession, with the World Bank forecasting an economic shrinkage of 1.7% in 2025 and 2.8% in 2026. The risk is compounded by rising inflation, with Iran’s Statistical Center announcing monthly inflation of 48.6% in October, the highest in 40 months.
In addition to the economic issues, demonstrators chanted support for exiled Iranian Crown Prince Reza Pahlavi.
“May Reza Shah’s soul be happy,” and “This is not the last battle, Pahlavi will return” were chanted, according to recordings circulating online.
Pahlavi backed the protests, with a message to his followers on social media.
“I send my greetings to you, the bazaar merchants, and the people who have taken the streets into their own hands,” he said in a video message. “As long as this regime remains in power, the country’s economic situation will continue to deteriorate.”
Reuters contributed to this report.