Business owners and employees in Tehran’s historic bazaar staged a rare strike on Sunday against runaway inflation and soaring foreign currency rates, spurring protests in other commercial hubs in the capital.
Unrest in Iran's historic heart of commerce reflects the bleak outlook of the country as it faces dire economic straits. In 1979, protests in the bazaar heralded the onset of the Islamic Revolution which toppled Iran's monarch.
The strike, which began with shoe sellers in the 15th Khordad area, quickly spread to other sectors.
Videos shared with Iran International show merchants in the bazaar chanting “Don’t be afraid, close up,” and “Brave merchants, support, support".
A fabric merchant who joined the protest cited the impact of surging raw material costs, exacerbated by the devaluation of Iran’s currency.
“With the dollar now above 810,000 rials, our expenses have skyrocketed,” the merchant said. “Many workshops have shut down, and even those still running are struggling to sell goods in such a sluggish market.”
The protests soon expanded to key commercial hubs, including Abbasabad Market and Baghe Sepahsalar, known for fabric and shoe vendors.
Hamidreza Rastgar, head of Tehran’s Chamber of Guilds, acknowledged the discontent among manufacturers.
"Producers fear that items priced at these exchange rates will simply be out of reach for most consumers,” he said.
The Iranian rial’s sharp depreciation has had ripple effects across the economy. For merchants, it has created an untenable mix of higher costs and reduced consumer demand as at least one third of Iran is now living below the poverty line.
Security forces were deployed to control the demonstrations and gatherings appeared to have subsided by the end of the day.
There were no immediate reports of violence, but the heavy presence of law enforcement forces highlighted the Islamic Republic's sensitivity to unrest in this economically vital area.
Iran's economy is in its worst state since the founding of the Islamic Republic in 1979, with US-led sanctions over its nuclear program, support for militant groups and arms transfers for Russia's war on Ukraine squeezing the country.
Ali Zeynivand, the political deputy of Iran's Interior Ministry, told the Iranian Labour News Agency (ILNA) on Saturday that individuals behind recent protests against issues such as the easing of internet restrictions, have been summoned and cautioned.
“There have been discussions within the Ministry of Interior regarding the recent rallies,” Zeinivand said. Provincial governors have been instructed to take firm action against protests that could jeopardize national unity and solidarity. All rallies must have official permits in Iran, he added.
Zeynivand’s warning follows growing criticism from political figures and media outlets, who have pointed out that while political parties and groups are routinely denied permits for rallies, ultra-hardliner vigilantes continue to stage protests with impunity against the government whenever and wherever they wish.
It remains unclear whether the Interior Ministry’s move to curb the activities of vigilantes is driven by the President's admiinstration, a higher authority such as the Supreme National Security Council (SNSC), or is a direct directive from Supreme Leader Ali Khamenei whose policies guide Iran's key security ministries of interior, intelligence, and defense.
Ultra-hardliners have accused President Masoud Pezeshkian of colluding with Iran's enemies by advocating negotiations with the West to lift crippling sanctions that have devastated Iran's economy.
They also criticize him for what they say is undermining Islamic values by resisting demands to implement a new hijab law and for taking steps to ease internet restrictions.
The group of hardliners also hold Pezeshkian responsible for the lack of a military response to Israeli airstrikes on Iran in October, accusing him of delaying the so-called “True Promise 3” retaliation.
As they look to attribute blame, the president has also become the fall guy for the depreciation of the national currency and the ongoing power outages, which the government attributes to the previous administration’s failure to stockpile fuel for power plants adequately.
Vigilantes have a long record of attacking political meetings and universities, threatening and slandering top officials including presidents and government officials in street rallies and in their media over the years but their recent focus on Pezeshkian’s government has become particularly relentless now, the reformist Arman-e Melli newspaper wrote in an editorial Saturday.
The newspaper’s editorial referred to these actions as ultra-hardliners' “street maneuvers” to pressure the government.
Vigilantes, often linked to the Revolutionary Guards' Basij militia, were behind the high-profile attacks on the British embassy in November 2011 and the Saudi embassy in January 2016, both of which led to significant diplomatic crises for Iran.
Although the perpetrators were well-known to authorities, they were never held accountable for the extensive damage inflicted on Iran's international reputation and relations.
Earlier this week, ultra-hardliners linked to the Paydari (Steadfastness) Party and another group with close ties to the former nuclear negotiator Saeed Jalili announced plans to protest after Friday prayers on motorbikes against the government’s decision to unblock WhatsApp and Google Play. However, reports indicated that turnout for the protest was minimal, with only about a dozen participants.
“The question is, who has allowed them to have such power to be able to cause disruptions in the city, make baseless allegations against authorities, and to insult and threaten them,” the article asked while contending that Pezeshkian’s government will not be able to deal with ultra-hardliners and stop them from harming the system under the name of the revolution by talks and invitation to unity.
Iran's government is grappling with multiple crises, both domestic and international. Abroad, its military stand-off with Israel and the collapse of Bashar al-Assad's rule in Syria have thrown foreign policy into chaos. Direct attacks from Israel have seriously damaged Iran's defense systems while losing its stronghold in Syria has weakened its influence across the region.
Meanwhile, at home, economic challenges such as high inflation and the unprecedented depreciation of the national currency, serious energy shortages, and widespread popular discontent over issues like hijab enforcement and internet filtering still risk sparking further unrest.