Several reported killed in Iran protests over economic woes

DUBAI - Several people were killed during unrest in Iran overnight into Jan 1, Iranian media and rights groups reported, as the biggest protests to hit the country in three years over soaring inflation sparked violence in several regions.

The semi-official Fars news agency and rights group Hengaw reported deaths in Lordegan, a city in western Iran. The authorities confirmed one death in the western city of Kuhdasht, and Hengaw reported another death in the central province of Isfahan.

The clashes between protesters and security services mark a significant escalation in the unrest that has spread since shopkeepers began protesting on Dec 28 over the government’s handling of a currency slide and rapidly rising prices.

Violence reported in several cities

Fars reported that two people had been killed in Lordegan in clashes between security services and what it called armed protesters. It earlier said several had died. Hengaw said several people had been killed and wounded there by security forces.

The Revolutionary Guards said one member of its affiliated Basij volunteer paramilitary unit had been killed in Kuhdasht and another 13 wounded, blaming demonstrators whom it accused of taking advantage of the protests.

Hengaw said the man, named by the Revolutionary Guards as Amirhossam Khodayari Fard, had been protesting and was killed by security forces.

Hengaw also reported that a protester has been shot dead on Dec 31 in Isfahan province in central Iran.

Reuters could not immediately verify any of those reports.

Protests also took place on Jan 1 in Marvdasht in the southern Fars province, activist news site HRANA reported. Hengaw said demonstrators had been detained on Dec 31 in the western provinces of Kermanshah, Khuzestan and Hamedan.

Critical moment for clerical rulers

The unrest comes at a critical moment for Iran's clerical rulers as Western sanctions hammer an economy hit by 40 per cent inflation, and after Israeli and US air strikes in June
targeted the country's nuclear infrastructure and military leadership.

Tehran has responded to the unrest with an offer of dialogue, an apparently conciliatory gesture alongside its security response.

Government spokeswoman Fatemeh Mohajerani said on Jan 1 that the authorities would hold a direct dialogue with representatives of trade unions and merchants, but did not give details.

The Basij is a volunteer paramilitary force fiercely loyal to Supreme Leader Ayatollah Ali Khamenei and affiliated with the Islamic Revolutionary Guards Corps, which on Jan 1 accused those involved in the unrest in Kuhdasht of “taking advantage of the atmosphere of popular protests”.

Government shutdown

Merchants, shop owners and students from different Iranian universities have been demonstrating for days and closing major bazaars. The government shut down much of the country on Dec 31 by declaring a holiday due to cold weather.

The authorities have in recent years quashed protests over issues ranging from high prices, droughts, women's rights and political freedoms, often with tough security measures and extensive arrests.

Iran's economy has been struggling for years as a result of US and Western sanctions over Tehran's nuclear programme. Regional tensions led to a 12-day air war with Israel in June
, further straining the country's finances.

The Iranian rial has lost around half its value against the US dollar in 2025, with inflation reaching 42.5 per cent in December. REUTERS