President Masoud Pezeshkian’s administration says it recognizes the public’s right to protest, but it has neither the financial resources to placate the deepening public anger nor the political leverage to confront hardliners who place the blame squarely on the government.
Pezeshkian addressed the situation on social media on Tuesday, writing that people’s livelihoods are his daily concern and that fundamental reforms of the monetary and banking system are on the agenda to protect purchasing power. He also said he had tasked the interior minister with speaking to representatives of the protesters.
The message failed to convince most Iranians, including many of Pezeshkian’s own supporters.
Morteza Nemati Zargaran, a university professor, reminded Pezeshkian in a post on X that recognizing public protests carries no practical guarantees as long as he lacks the necessary authority.
“What action can you take if the protesters’ representatives challenge the country’s overarching policies – policies to which you have repeatedly declared your loyalty? And what will you do if … they are arrested by power centers beyond your government?”
'Closed is cheaper than open'
The economic strain has been especially visible in Tehran’s Grand Bazaar.
Morteza, a 45-year-old former wholesale shoe merchant who recently closed his shop after failing to pay rent, told Iran International that nearly all his fellow traders have joined the ongoing bazaar strike.
“They tell me I’m lucky I shut my shop and left,” he said. “They say they lose less money if they keep their shops closed now than if sell their goods – because it’s impossible to replace the stock at the same price.”
The stagnation has become so severe that some shops have recently advertised installment plans for clothing and shoes – an unprecedented practice in Iran and a sign of sharply declining purchasing power.
Morteza added: “The economic situation is so dire that the government no longer dares to deny it. When someone earning 400 million rials a month (around $280) – still a dream salary for many – is below the poverty line in Tehran, it means almost no worker or employee can endure the pressure anymore. Everyone has reached their limit, in every sense.”
Cautious nod from state media
Concerns over further escalation appear to be growing within official circles.
On Monday, state television – controlled by hardliners opposed to President Masoud Pezeshkian – briefly covered the bazaar protests for the first time.
Cameras were taken into shops, airing interviews in which merchants emphasized that their protests were economic in nature and driven by currency volatility rather than politics.
At the same time, videos circulating on social media showed protesters chanting anti-government slogans in several locations.
According to Morteza, while the protests so far have had a strong economic dimension, they cannot be reduced to bread-and-butter issues alone.
“Livelihood is not the only reason for people’s anger. This time, the government cannot calm society with small handouts, superficial concessions or a crackdown.”
Fear at the bottom, strain in the middle
Iran’s deteriorating economy has devastated low-income households while also eroding the lives of salaried middle-class families who once enjoyed relative stability.
Even by official figures, inflation surpassed 50 percent last month. Yet the government’s proposed budget for next year includes only a 20 percent increase in salaries for civil servants and retirees, deepening concerns over an unbridgeable gap between incomes and living costs.
Middle-class families may still live in reasonably maintained homes, but a burst pipe, a broken car, or a medical emergency can wipe out most of a month’s income, according to widespread accounts on social media.
Downsizing, once a coping strategy, now offers little relief. Iran’s housing market – particularly in Tehran – is experiencing an unprecedented slump, limiting families’ ability to sell or relocate to offset rising costs of food and utilities.
Journalist Mohammad Parsi wrote on X: “In this country… first buying a home became a dream, then a car, a phone, travel – and now even essential goods are disappearing from daily life, just like that, in one of the richest countries in the world.”
Another user, Arian Bahmani, described even buying basic snacks as a financial calculation, calling it “a frightening collapse of living standards.”
“The disaster is not that we can’t buy a house or a car – they’ve been dreams for years,” he wrote. “The disaster is that ‘500,000-rial (about 35 cents) treats are luxury purchases. When buying snacks becomes a financial risk, we are no longer citizens – we are hostages.”
