Iranians protesting the economy have Trump’s pledge to intervene

By Steven Sahiounie | January 5, 2026 | General

Steven Sahiounie, Journalist and political commentator

Protests are rapidly expanding across Iran, spreading from major commercial centers to universities and provincial cities, underscoring the depth of the country’s economic crisis and placing the government’s newly declared conciliatory approach toward dissent under its first major test.

What began as demonstrations by merchants in Tehran’s mobile phone market—one of the sectors most sensitive to currency fluctuations—has now extended to major universities, including the University of Tehran, Shahid Beheshti University, Sharif University of Technology, and academic institutions in Isfahan and Yazd, according to Iran’s official IRNA news agency.

Currency Collapse Fuels Public Anger

The protests come amid a sharp deterioration in Iran’s national currency. The rial has fallen beyond 1.4 million per U.S. dollar on the open market—an unprecedented low that has intensified pressure on both traders and ordinary citizens.

This collapse coincided with major changes in Iran’s financial leadership. The resignation of the central bank governor and the appointment of former economy minister Abdolnaser Hemmati as his replacement were widely viewed as emergency measures aimed at containing the deepening monetary crisis.

President Masoud Pezeshkian has attempted to defuse tensions through dialogue, instructing the Interior Ministry to engage directly with protest representatives and acknowledge what he described as “legitimate public demands.” He also held meetings with representatives of Tehran’s bazaar in an effort to calm one of the country’s most influential economic sectors and explore urgent measures to stabilize the currency.

Parliament Speaker Mohammad Bagher Ghalibaf echoed this stance, stating that livelihood-related protests require “full responsibility” from the state and calling for faster government action to address citizens’ economic hardships.

University Protests and Security Response

Iranian authorities announced the release of four students detained during protests at the University of Tehran earlier this week, a move widely interpreted as an attempt to ease tensions in academic circles.

Meanwhile, Shahid Beheshti University and Allameh Tabataba’i University announced that classes would continue remotely until the end of the current academic term, reflecting growing concern over campus unrest.

Escalating Rhetoric Between Tehran and Washington

The situation escalated further following sharp exchanges between Tehran and Washington. U.S. President Donald Trump warned on Friday that the United States was “ready to act” if Iranian authorities killed demonstrators, following reports that six people had died during clashes between protesters and security forces.

Iran’s Foreign Ministry swiftly rejected the remarks. Spokesman Esmail Baghaei said Tehran would not tolerate foreign interference, arguing that U.S. claims of protecting Iranians rang hollow given Washington’s historical record — including the 1953 coup, the downing of an Iranian civilian aircraft in 1988, support for Iraq during the Iran-Iraq war, and ongoing sanctions.

Baghaei said any U.S. threat under the pretext of humanitarian concern constituted a violation of international law and insisted that Iran’s internal issues must be resolved through domestic dialogue alone.

The U.S. State Department responded by stating that the protests reflected widespread anger over “government failure and persistent justifications,” adding that Washington would continue its policy of “maximum pressure” on Tehran. It accused Iran’s leadership of spending billions on proxy groups and nuclear-related activities while neglecting domestic economic crises, including shortages of water and electricity.

Warnings of Red Lines

Trump further escalated rhetoric on his Truth Social platform, writing that if Iran “shoots peaceful protesters, as it has done before,” the United States would intervene. “We are ready and prepared to act,” he said.

Senior Iranian officials responded sharply. Ali Larijani, Secretary of Iran’s Supreme National Security Council, warned that any U.S. interference would destabilize the entire region and endanger American interests. “Trump must understand that such adventurism will have consequences,” he said.

Ali Shamkhani, senior adviser to Supreme Leader Ayatollah Ali Khamenei, echoed the warning, stating that Iran’s national security is a “red line” and not subject to “reckless tweets.” He cautioned that any foreign hand attempting to intervene would face consequences “before it can even reach its objective.”

Casualties and Arrests

Local media reported that at least six people were killed during clashes on Thursday—marking the first fatalities since the protests began. In Lorestan province, officials confirmed the death of a member of the Basij paramilitary forces, while other reports cited civilian casualties.

The Fars News Agency reported two deaths in the western city of Lordegan, where demonstrators allegedly attacked government buildings. Three additional fatalities were reported in Azna, where security forces clashed with protesters attempting to storm a police station.

Iranian authorities have arrested at least 30 individuals in Tehran’s western suburbs on charges of “disturbing public order,” according to the Tasnim News Agency.

Economic Collapse at the Core

Iran’s economy has been battered by years of U.S. and international sanctions tied to its nuclear and missile programs. The rial has lost more than a third of its value over the past year alone, while inflation officially reached 52% in December, severely eroding purchasing power.

The current unrest comes just months after a 12-day war with Israel, during which Iranian nuclear and military facilities were struck, including U.S. airstrikes on three nuclear sites. The conflict further strained an already fragile economy.

According to AFP estimates based on official and local sources, protests have spread to at least 15 cities, particularly in western Iran. While still smaller in scale than the 2022 protests following the death of Mahsa Amini, the current unrest reflects deepening socioeconomic frustration.

A Fragile Moment

Analysts note that while the protests remain limited compared to past uprisings, their economic roots, geographic spread, and timing—amid severe currency collapse and post-war recovery—pose a serious challenge to Iran’s leadership.

As tensions rise at home and rhetoric sharpens abroad, Iran finds itself navigating a volatile moment that could shape its political and economic trajectory for years to comes

Steven Sahiounie is a two-time award-winning journalist.