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.

The Persian-language account of the US State Department said Iran’s ongoing crises stem from repression and mismanagement by the Islamic Republic, calling for an end to what it described as a cycle of suffering.
In a New Year message posted on X, the account wished Iranians a hopeful 2026 marked by “prosperity, justice and human dignity for all.” It cited challenges faced by Iranians in 2025, including the collapse of the rial, rising food prices, air pollution, water shortages, energy crises, and increased censorship and internet disruptions.
“Continued repression and mismanagement by the Islamic Republic have deepened the people’s suffering,” the statement said, adding: “This cycle of crisis and oppression must end.”

Nationwide protests were held in Iran for the fourth day in a row on Wednesday, with fresh rallies reported in multiple cities, a harsh response from security forces and growing calls for a regime change by both protesters and politicians across the world.
Demonstrators took to the streets in cities including Esfahan, Hamadan, Babol, Dehloran, Baghmalek and Pian, chanting slogans against Supreme Leader Ali Khamenei, backing exiled prince Reza Pahlavi, and commemorating slain protesters from previous uprisings such as teenager Artin Rahmani from Izeh.
In Esfahan, nighttime protesters were filmed chanting “Don’t be afraid, we are all together” and “Death to the dictator,” while in Dehloran and Baghmalek demonstrators shouted pro‑monarchy slogans including “This is the national slogan: Reza Pahlavi,” “Javid Shah” (“Long live the Shah”) and calls for Khamenei to be overthrown.
Acts of defiance
Security forces responded with force in several locations, with reports and footage of gunfire and tear gas in cities such as Nahavand, Asadabad and Hamadan, where residents were seen standing their ground, including one protester who faced down a water cannon.
In Babol, crowds intervened to stop security forces from arresting a demonstrator, while in Tehran a student leader at the University of Tehran, Sarira Karimi, was detained after a raid on her home, with her whereabouts unknown.
Voices of support
Prominent cultural and religious figures also weighed in, with top Sunni cleric Molavi Abdolhamid saying crushing living conditions and a political dead-end are driving the revolt, and acclaimed filmmaker Jafar Panahi describing the unrest as an uprising to “push history forward” now that “shared pain has turned into a cry in the streets.”
Western politicians continued to line up behind the protesters. US Senator Rick Scott said he was encouraged to see Iranians “calling for an end to the abusive Iranian dictatorship” and urged them to keep standing up to the “evil regime," while fellow Republican Senator Pete Ricketts called for more pressure on Tehran as people risk their lives in the streets.
Swedish MEP Charlie Weimers urged the EU to “stand on the right side of history” by cutting diplomatic ties with Tehran’s rulers, backing internet access for Iranians and engaging with opposition leaders about a “post‑Islamist Iran."
Swedish Member of the European Parliament Charlie Weimers said that as people in Iran protest against their government, it is time for the European Union to act and increase pressure on Tehran.
“The people of Iran are standing up to the murderous mullahs and it’s time for the EU to stand on the right side of history,” Weimers posted on X on Wednesday.
“Cut diplomatic ties with the dying regime in Tehran – throw out the ambassadors, support internet access for the people, meet with opposition leaders to discuss post-Islamist Iran,” he added.
Republican Congresswoman Nancy Mace sent a message of support to protesters inside Iran, saying she believes freedom will ultimately win.
“To the beautiful people of Iran, your courage is louder than the terrorism, tyranny and fear. The world sees you, the world stands with you and we believe in you,” Mace posted on X on Wednesday. “Freedom will prevail.”

As protests over economic and political conditions enter a fourth day, Iran’s authorities appear to be pursuing a dual strategy—offering dialogue and limited concessions while issuing firm warnings to deter escalation.
Unlike previous waves of unrest, the government has so far refrained from cutting nationwide internet access. Officials also appear keen to avoid an immediate crackdown that could further inflame public anger and broaden demonstrations.
Authorities have instead announced a series of closures under the pretext of “cold weather and energy saving.” Government offices were shut down in 26 of Iran’s 31 provinces on Wednesday, and several major universities in Tehran moved classes online until further notice under the same pretext.
Recognition of the right to protest, in words
On the third day of protests, President Masoud Pezeshkian said his government recognizes the public’s right to protest and has tasked the interior minister with holding talks with representatives of Tehran’s bazaar merchants.
Ali Ahmadnia, head of the government’s information office, also said on Wednesday that the administration had formally accepted the protests and would listen to criticism. The government, he said, “will sit down and listen to all critics and will not engage in any violent behavior—indeed, it strongly opposes it.”
The comments were met with skepticism on social media. One X user wrote: “If the government respected the people and had heard their protests, it would have resigned on the first day and stood with the public. Instead, despite all its inefficiency, it keeps making empty promises—showing it still doesn’t understand what is happening.”
Warnings from other power centers
Conciliatory language from the government was accompanied by firm warnings from other power centers.
Iran’s prosecutor general, Mohammad Movahedi-Azad, described “peaceful livelihood protests” as part of social realities but warned that “any attempt to turn economic protests into tools of insecurity, destruction of public property, or the execution of externally designed scenarios” would be met with a response from authorities.
The Islamic Revolutionary Guard Corps (IRGC) also issued a statement on Monday marking the anniversary of the 2009 protest crackdown. It warned it would confront “any sedition, unrest, cognitive warfare, or security threat,” accusing what it called the enemies of the Islamic Revolution of attempting to recreate unrest through “psychological operations and narrative warfare.”
Hossein Shariatmadari, editor of the hardline Kayhan newspaper, claimed protesters were few in number and accused them of exploiting economic grievances to create unrest. He also alleged that shopkeepers had distanced themselves from protesters because of slogans he described as “dictated by the Zionist regime.”
Partial retreat toward bazaar merchants, cash aid promises
Meeting with representatives of trade guilds, President Pezeshkian said the government and parliament had agreed to suspend certain tax requirements, including penalties, for up to one year.
The move may not be sufficient to calm unrest among merchants, whose survival depends less on tax relief than on consumers’ rapidly shrinking purchasing power amid high inflation. At the same time, such concessions risk angering salaried workers who cannot avoid paying taxes.
One user wrote on X: “That’s not even the issue. When sales are close to zero, making taxes zero changes nothing. When income doesn’t cover high rent, even cash handouts don’t help.”
The government has also sought to ease public pressure by reiterating its promise to pay a monthly cash subsidy of 7,000,000,000 rials (about $5.17) per person.
Officials present the measure as targeted support for households struggling with rising prices, but critics say the amount has been eroded by inflation and is unlikely to offset the sharp decline in purchasing power or calm growing public anger.
Limited use of force—so far
Social media reports indicate that an unspecified number of protesters have been detained in recent days, though arrests appear more limited than in comparable protests in past years.
In Tehran—where demonstrations quickly spread across markets, streets, and universities on Monday and Tuesday—there have so far been no confirmed reports of security forces firing on protesters, unlike previous unrest. However, on Wednesday, security forces opened fire in the towns of Fasa, in southern Fars province, and Kouhdasht, in Lorestan province, as protesters attempted to enter governorate buildings.
Online reports initially claimed that an 18-year-old had been killed in Fasa, but a video later surfaced showing the young man alive and saying he was unharmed.
Campus controls and university shake-ups
Protests reached several universities on Tuesday, where students chanted anti-government slogans.
Following confrontations, the heads of campus security at Alzahra, Sharif, and Iran University of Science and Technology were dismissed for “a record of misconduct and failure to properly handle recent student protests.”
Also, six of at least seven detained students in Tehran were later released.
Reformist figures welcomed the unprecedented dismissals. Azar Mansouri, head of Iran’s Reformist Front, called the move “a rational response,” saying it signaled recognition that security and stability cannot be achieved by ignoring protesters’ concerns.





