Iran Protests 2026: What Triggered the Unrest and Why Is Public Anger Rising Against Ayatollah Khamenei?

Tehran, January 2: Iran is currently facing its most significant wave of civil unrest since 2022, as a catastrophic collapse of the national currency has ignited nationwide protests that have left at least seven people dead as of January 2, 2026. What began on December 28, 2025, as a strike by merchants in Tehran’s Grand Bazaar has rapidly evolved into a broad political uprising spanning more than 17 provinces. With the Iranian rial hitting a record low of 1.45 million to the U.S. dollar and food inflation soaring above 70%, demonstrators have moved beyond economic grievances to demand the fundamental dismantling of the country’s theocratic leadership.

What Is Happening in Iran Right Now?

The uprising has entered its sixth consecutive day, paralyzing major commercial hubs and expanding into rural and semi-urban regions. While the capital, Tehran, saw the initial spark, the most intense confrontations are now occurring in provinces like Lorestan, Isfahan, and Chaharmahal and Bakhtiari. Security forces have begun a "heavy-handed" response to regain control. Reports indicate that the government has declared sudden public holidays—officially to "conserve energy"—in a move widely seen as an attempt to keep citizens off the streets. Despite this, students have joined the movement, with raids reported at major institutions including the University of Tehran. Iran Protests 2026: 6 Killed as Economic Collapse Sparks Nationwide Unrest, Demonstrators Target Supreme Leader Ayatollah Ali Khamenei.

Why Is Iran Facing an Economic Crisis?

The current fiscal meltdown is the result of what economists describe as a "perfect storm" of internal mismanagement and external shocks. Several key factors have pushed the economy to the brink:

• The "Twelve-Day War": A brief but devastating military conflict with Israel in mid-2025 severely damaged Iran's energy infrastructure, leading to a massive diversion of the national budget toward defense.
• Sanctions and "Snapback": The return of comprehensive international nuclear sanctions, combined with a "maximum pressure" campaign from the United States, has effectively decoupled Iran from global banking and crippled its oil exports.
• Systemic Mismanagement: Decades of corruption and a "security-first" mindset have led to chronic budget deficits. To cover these gaps, the government has resorted to printing money, pushing inflation to nearly 50%.
• Energy and Resource Scarcity: Beyond the currency, Iran is suffering from an "energy famine." Rolling blackouts for 3–4 hours a day and acute water shortages have shuttered nearly half of the country’s industrial capacity. Deadly Clashes as Protests over Economy Spread Across Iran.

Growing Anger Toward Ayatollah Khamenei

While the protests were sparked by financial desperation, the slogans in the streets have quickly turned toward the highest levels of power. Protesters have been heard chanting "Death to the Dictator," directly targeting Supreme Leader Ayatollah Ali Khamenei. The issue involving the Supreme Leader is twofold. First, many Iranians view Khamenei as the ultimate architect of a system that prioritizes regional proxy wars and ideological purity over basic economic welfare. Second, there is a growing sense of frustration with a decades-long theocracy. In some regions, protesters have even called for the return of the exiled monarchy, chanting support for Reza Pahlavi as an alternative to the current clerical rule.

A Rising Death Toll

The violence has resulted in at least seven confirmed deaths so far. The fatalities include protesters in the cities of Azna and Lordegan, as well as a 21-year-old member of the Basij paramilitary force in Kuhdasht. Human rights groups like Hengaw report that security forces have used live ammunition and tear gas to disperse crowds. Meanwhile, state media has blamed "armed rioters" and "foreign-backed elements" for the escalation, a familiar narrative used during previous periods of unrest.

Why the World is Watching

The international community is closely monitoring the situation for several reasons:

• Regional Stability: A destabilized Iran has immediate implications for the Middle East, particularly regarding its influence in Lebanon, Yemen, and Iraq.
• U.S. Intervention: U.S. President Donald Trump has issued a direct warning to Tehran, stating that the U.S. will "come to the rescue" and intervene if the regime uses lethal force against peaceful protesters.
• Human Rights Record: Following a record-breaking 1,500 executions in 2025, global rights organizations are concerned that the regime may resort to a brutal crackdown similar to the 2022 suppression of the Mahsa Amini protests.

While President Masoud Pezeshkian has acknowledged the "right to protest," the appointment of hardline security officials suggests that the state may be preparing for a more violent confrontation if the strikes continue to spread.

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(The above story first appeared on LatestLY on Jan 02, 2026 03:28 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).