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Canada on Wednesday rejected Iran’s decision to designate the Royal Canadian Navy as a terrorist organization, calling the move baseless and politically motivated and reaffirming its sanctions and human rights pressure on Tehran.
John Babcock, a spokesperson for Global Affairs Canada, said the designation had “no basis in fact” and was a retaliatory response to Ottawa’s decision last year to list Iran’s Islamic Revolutionary Guard Corps (IRGC) as a terrorist entity under Canadian law.
“Iran’s announcement is a baseless political reaction to Canada’s lawful decisions regarding national security and international law,” Babcock said in a statement.
Iran’s foreign ministry said the move was taken under a 2019 Iranian law adopted in response to US sanctions, arguing that Canada’s June 2024 listing of the IRGC violated international law. Tehran said it was acting under the principle of reciprocity by applying its counter-terrorism legislation to the Canadian navy.
Canada said its decision to list the IRGC under the Criminal Code followed a “rigorous, evidence-based assessment” that found reasonable grounds to believe the force had engaged in terrorist activity, either directly or through proxies.
Ottawa maintains a policy of “controlled engagement” with Tehran, limiting official contact to Iran’s nuclear program, regional security, human rights and consular issues, Babcock said.
Canada has imposed sanctions on 215 Iranian individuals and 256 entities over what it describes as threats to international peace and security, human rights violations and support for terrorism.
The human rights situation in Iran remains deeply concerning, Babcock said, adding that Canada led a United Nations General Assembly resolution on Iran’s human rights record in 2025. Canada also imposed new sanctions on four senior Iranian officials in December over their alleged involvement in gross and systematic human rights abuses.
Babcock said Ottawa was monitoring reports of protests in Iran and urged Iranian authorities to respect freedom of expression and peaceful assembly.
Canada has no resident diplomatic mission in Iran and advises Canadians to consult official travel advisories before travelling there, citing limited consular capacity.
Iran’s economy has been “mostly ruined by the ayatollah and his henchmen,” former US secretary of state Mike Pompeo said, arguing that a mix of internal mismanagement and US pressure has pushed the country toward sustained unrest.
Speaking to Fox News, Pompeo said on Wednesday that protests feel “large and a little bit different” this time because of severe economic strain, including water shortages and wasted resources. Past uprisings, he said, were crushed through killings and executions, but added that Iranians may now see “a real hope and a real opportunity” for fundamental change after decades of what he called corrupt, theocratic rule.
A video shows vendors at Tehran’s central fruit and vegetable wholesale market joining nationwide protests on Thursday, chanting “strike” during a march in the complex.
The demonstration marked the fifth day of coordinated protests by merchants. Footage shows participants also chanting “Neither Gaza nor Lebanon, my life for Iran,” a slogan reflecting anger at the government’s regional priorities amid mounting economic pressure at home.
Fresh protests in Iran have reignited hopes of systemic change, but history suggests caution, the Jerusalem Post wrote, warning that previous uprisings have often ended in violent crackdowns and political stalemate .
Tens of thousands have taken to the streets since Saturday, initially over the collapse of the rial, but protests quickly escalated into open political defiance, with chants of “Death to the dictator.” The paper notes parallels with earlier protest waves in 1999, 2009, 2017 and the 2022–23 “Woman, Life, Freedom” movement.
The analysis argues that while Israel and Western governments want to see change in Iran, overt support risks handing Tehran a propaganda weapon to brand protesters as foreign-backed.
Instead, the paper says the most effective support would be indirect: expanding internet access, encrypted communications, satellite connectivity and targeting the Islamic Republic’s surveillance capabilities.
Iran's President Masoud Pezeshkian said the government is moving to stop allocating preferential exchange rates, arguing that multiple dollar rates fuel corruption and rent-seeking,
“We are now deciding not to give 280,000- or 700,000-rial dollars to anyone,” Pezeshkian said, referring to subsidised exchange rates. “Anyone who receives 280,000- or 700,000-rial dollars is receiving rent, and we want to stop that.”
A late-night meeting, he said, was held with the ministers of economy, agriculture, labour and welfare, as well as officials from the Central Bank and the budget organisation, to coordinate the policy shift.
