The Iranian government has pledged to address mounting economic grievances raised by merchants and citizens following a series of protests that erupted in Tehran’s Grand Bazaar in late December, driven largely by sharp currency fluctuations and rising living costs.
In a non-paper released in January 2026, authorities outlined a multi-pronged plan aimed at restoring market stability and easing pressure on traders and vulnerable households. The government said it has already begun rolling out immediate support packages while launching consultative meetings with representatives of guilds, bazaar unions and business communities in Tehran and other major cities.
The protests began on December 28, 2025, after a surge in foreign exchange rates significantly eroded purchasing power and disrupted commercial activity. Merchants complained that the volatility had made pricing unpredictable and undermined economic security. Officials described the initial demonstrations as peaceful and orderly, noting that the central demand from protesters was the stabilization of the market rather than broader political change.
President Ebrahim Raisi has instructed the Ministry of Interior to conduct a comprehensive review of the unrest. According to the government, the review is intended to strengthen accountability and transparency while identifying and addressing the root economic and social causes behind the protests.
In its statement, the government reaffirmed its commitment to the International Covenant on Civil and Political Rights, emphasizing that peaceful assembly is a legitimate and protected form of public participation. However, authorities drew a distinction between lawful economic protests and violent acts, which they attributed to a small number of individuals and alleged foreign interference.
Despite heightened security during the unrest, officials said law enforcement agencies were directed to exercise restraint. The government maintained that its priority remains dialogue and the use of institutional mechanisms to respond to citizens’ concerns while preserving public order.
The report concluded that, absent what it termed biased interference by foreign political actors, Iran’s efforts to resolve domestic economic challenges and restore confidence in the market would progress without major difficulty.
