Tehran politicians warn of unrest as governance crisis deepens

A day after protests erupted at two of Tehran's traditional bazaars over the worsening economic crisis and soaring inflation, the goldsmiths bazaar joined the strike on Monday, December 30.

The unrest in Tehran's largest traditional market comes amid growing warnings from politicians and economists about Iran's dire economic state. Reformist politician Ali Mohammad Namazi told conservative outlet Nameh News, "The situation of the Iranian economy is alarming."

Namazi criticized President Masoud Pezeshkian for failing to deliver on campaign promises to "lift sanctions, facilitate international trade, and expand relations with other countries." He added, "The public is now demanding accountability for these unfulfilled promises."

"Iranians are uncertain about their future," Namazi said, warning that unresolved problems could escalate into crises. He also noted that the current instability benefits those with access to insider information while making long-term planning impossible for ordinary citizens.

Namazi further highlighted the structural challenges facing Iran, even if sanctions were lifted. "Even in the best-case scenario, restoring oil production to normal levels would require at least four months of intensive work due to neglected maintenance of oil wells," he explained.

Economic strains and potential unrest

Nameh News emphasized the falling value of the rial and persistent high inflation as key issues plaguing Iran's economy. In response, IRGC commanders and Iran's judiciary chief have stated they are prepared to handle potential unrest. Namazi warned that if the economic freefall, particularly the decline of the rial, is not controlled, widespread protests could ensue.

Geopolitical complications

Iranian foreign policy analyst Ghasem Mohebali told Nameh News that hardliners within Iran oppose lifting sanctions because a normalized economy could weaken their influence. "Hardliners in Iran, like their counterparts in the region and beyond, benefit from ongoing tensions," Mohebali said. He pointed out that global players, including Iran, Russia, the United States, and even China, have vested interests in maintaining instability in the Middle East to advance their own agendas.

"China, for instance, prefers regional tensions to keep the US and Europe distracted from focusing on the war in Ukraine and applying pressure over East Asia," Mohebali added.

Political pressures on the Pezeshkian administration

Amid the crisis, President Pezeshkian faces pressure from reformists and hardliners alike. The IRGC-linked Javan newspaper reported that reformist figures, including former President Mohammad Khatami and former Majles Speaker Ali Akbar Nateq Nouri, are urging Pezeshkian to tell Supreme Leader Ali Khamenei that the government cannot resolve the crisis without negotiating with the West.

Former Vice President Es'haq Jahangiri echoed this sentiment, stating, "Iran is in a difficult situation, and Tehran needs to negotiate with Trump and accept his conditions."

Meanwhile, the hardliner Kayhan newspaper, linked to Khamenei’s office, criticized Pezeshkian’s advisers and called for a government reshuffle. "The current deadlocks are the result of poor advice given to the President," Kayhan warned, adding that advisers suggesting the government is incapable of solving the crisis "are not well-wishers."

Unlike reformists advocating negotiations with the Trump administration, hardliners like Kayhan cautioned against trusting the US and its allies. "How many more times must we try to deal with the 'Great Satan' and its followers?" the publication asked.

A nation at a crossroads

As economic pressures mount and political divisions deepen, Iran's government faces an uncertain path forward. With internal protests and geopolitical complexities converging, Pezeshkian’s administration must navigate mounting challenges while addressing growing calls for accountability and decisive action.