A fresh wave of protests has swept across Iran since late December, evolving from economic demonstrations into deadly unrest that has heightened regional tensions and revived fears of broader confrontation between Tehran, Washington, and Tel Aviv. What began as localized protests over inflation and currency devaluation has now become a multifaceted crisis, blending domestic economic grievances with international geopolitical fault lines.
The protests erupted on December 28, initially led by Tehran’s bazaar merchants angered by the sharp fall of the Iranian rial and rising prices of essential goods. Within days, demonstrations spread to multiple cities, drawing in wider segments of society. As unrest intensified, clashes broke out between protesters and security forces, resulting in casualties on both sides.
According to Iran’s semi-official Tasnim news agency, violent elements infiltrated the protests, with rioters allegedly attacking security personnel, vandalizing public and private property, and attempting to harm civilians. Tasnim reported that at least 111 members of the security forces have been killed nationwide while maintaining order. Authorities say around 200 individuals have been arrested and a large cache of weapons, including grenades and Molotov cocktails, has been seized.
Iranian officials have firmly rejected the notion that the unrest is purely domestic. Foreign Minister Seyed Abbas Araghchi said the situation in the country is “under total control” and claimed Tehran possesses evidence of U.S. and Israeli involvement in what he described as “terrorist activities.” He cited alleged footage showing weapons being distributed among protesters, reinforcing the government’s assertion of foreign interference.
In response, state broadcaster Press TV reported that hundreds of thousands of Iranians took to the streets across the country in government-backed rallies, condemning what authorities labeled “foreign-backed riots.” These demonstrations were presented as a show of national unity against external pressure and internal destabilization.
Supreme Leader Ali Khamenei has adopted a dual tone-acknowledging economic grievances while warning against violence. In speeches on January 3 and again later in the week, he said that while protests over economic hardship were justified, unrest that undermines security would not be tolerated. He accused some rioters of deliberately damaging their own cities to please “the president of another country,” a clear reference to Donald Trump.
President Masoud Pezeshkian has emphasized dialogue, stating in a televised interview that his government has engaged with protesters and is prepared to address economic challenges, including rising prices and subsidies for basic goods. However, he warned that sabotage and violence would not be allowed. Authorities have also pledged to restore internet services following a days-long nationwide blackout imposed amid security concerns. The government has declared three days of national mourning for those killed during the unrest.
International reactions have further escalated the situation. President Trump said Iranian officials had contacted Washington to propose negotiations, adding that a meeting was being arranged. At the same time, he warned that the U.S. is considering “very strong options,” including military action, in response to Iran’s crackdown. While the White House has stressed that diplomacy remains the preferred path, it has not ruled out force.
Trump also announced new economic measures, declaring that any country doing business with Iran would face a 25 percent tariff on trade with the United States. U.S. media reports suggest the administration is weighing options ranging from deploying an aircraft carrier strike group to launching cyber and information operations against Iran, though some officials reportedly fear that overt military action could undermine the protest movement itself.
Israel has also closely watched developments. Prime Minister Benjamin Netanyahu said Israel is monitoring the situation, while reports indicate he has discussed the possibility of renewed military action against Iran in 2026. In response, Iranian Parliament Speaker Mohammad Baqer Qalibaf warned that U.S. and Israeli bases in the Middle East would be considered “legitimate targets” if Iran is attacked.
Foreign Minister Araghchi has reiterated that Iran is open to negotiations with the United States based on mutual respect, stating that Tehran is “ready for war but also for dialogue.” As protests continue and rhetoric sharpens, Iran finds itself at a critical juncture-caught between addressing domestic economic pain and navigating an increasingly volatile international environment.