As the pace of protests escalates and extends to various parts of Iran, the profound economic effects of the crisis become clear, with Iranian citizens finding it increasingly difficult to keep up with the sharp rise in the cost of living, despite the government’s efforts to contain public anger through a comprehensive financial support plan.
The Iranian government is working to implement a plan aimed at providing financial assistance to about 80 million citizens, in an attempt to alleviate the accelerating inflation. However, the spark for the protests started in the markets, where import and consumer goods traders expressed their strong dissatisfaction due to the collapse of the currency value and the decline in profit margins.
Currency collapse in numbers
According to a report broadcast by Al Jazeera, the dollar price before the “Nuclear Agreement” in 2015 was about 32,000 rials, then rose to about 55,000 rials with the return of US sanctions in 2018.
At the end of 2022, the dollar price reached about 430,000 rials, while the rial entered an unprecedented phase in 2025, where the dollar price in early December approached 1,250,000 rials, before rising to about 1,400,000 rials with the expansion of the protests later that month.
This collapse directly affected food security, as the price of a loaf of bread rose from 8,500 rials to about 46,000 rials, an increase of nearly 440%, while the wage increase did not exceed 20% in recent years, amid inflation approaching 50%.
Additional external pressures
The crisis is exacerbated by US President “Donald Trump’s” decision to impose a 25% tariff on countries that trade with Iran, which increases pressure on the Iranian economy.
Iranian customs data shows that 70% of the country’s imports come from China, the UAE and Turkey, while 75% of its exports are concentrated in China, the UAE, Turkey, Iraq and India.
Protest toll
The demonstrations began on December 28 with a strike by traders in Tehran protesting the deterioration of the exchange rate, before turning into a broad political movement. According to the human rights site “HRANA”, the number of victims rose to 2,571 deaths.
In response, Tehran accused the US president of “inciting destabilization”, in a message to the Security Council, while “Trump” had previously called on Iranians to continue protesting, announcing the suspension of any meetings with Iranian officials.
