Amid protests against soaring prices that have been ongoing for the past two weeks in Iran, the situation further deteriorated on Thursday night. According to a CNN report, the protests have spread to more than 100 cities across the country.
People were chanting slogans such as “This is the final battle, Shah Pahlavi will return.” Internet and telephone services have been shut down nationwide. According to Iran’s state agency Fars, a police officer attempting to control the situation in Tehran was stabbed to death.
45 Killed in Violence, National Flag Torn
In the country’s second-largest city, Mashhad, protesters tore the national flag. According to a US-based human rights agency, at least 45 people have been killed so far in protest-related violence, while more than 2,270 people have been detained.
The protests intensified following an appeal by exiled Crown Prince Reza Pahlavi, the son of Iran’s last Shah, Mohammad Reza Pahlavi, who was overthrown during the 1979 Islamic Revolution. Crown Prince Pahlavi currently resides in the United States.
Trump Issues Threat to Iran
Amid the unrest, US President Donald Trump reiterated a warning to Iran, threatening that the United States would attack Iran if protesters are killed.
Trump said,
“I have already told them—if they start killing people, which they often do during their riots, we will hit them very hard.”
Public Anger Fueled by Inflation
Public anger has intensified nationwide, primarily due to the severe economic crisis. In December 2025, the Iranian currency, the rial, collapsed to around 1.45 million rials per US dollar, its lowest level ever.
Since the beginning of the year, the rial has lost nearly half of its value. Inflation has reached extreme levels, with food prices rising by 72 percent and medicine prices increasing by up to 50 percent. Public dissatisfaction further deepened after the government proposed a 62 percent tax increase in the 2026 budget.
Long-Standing Political Crisis
Following the 1979 Islamic Revolution, Ayatollah Ruhollah Khomeini came to power and served as Supreme Leader from 1979 to 1989. He was succeeded by Ayatollah Ali Khamenei, who has remained in power for 37 years since 1989.
Iran is currently grappling with economic collapse, runaway inflation, international sanctions, unemployment, currency devaluation, and continuous public protests.
After 47 years, people angered by the current economic hardship and strict religious rule are demanding change.
As a result, calls are growing for power to be handed over to 65-year-old Crown Prince Reza Pahlavi. Protesters view him as a secular and democratic alternative. Many young people and Generation Z believe that Pahlavi’s return could bring economic stability, global acceptance, and personal freedoms to Iran.
Iran’s Oil-Dependent Economy
In 2024, Iran’s total exports stood at approximately USD 22.18 billion, with oil and petrochemicals accounting for a major share. Imports reached USD 34.65 billion, resulting in a trade deficit of USD 12.47 billion.
In 2025, due to declining oil exports and sanctions, the deficit widened further to USD 15 billion. Iran’s main trading partners include China (35 percent of exports), Turkey, the UAE, and Iraq. Iran exports 90 percent of its oil to China.
Iran has attempted to expand trade with neighboring countries and the Eurasian Economic Union. However, GDP growth in 2025 is estimated at only 0.3 percent. Without the lifting of sanctions or the restoration of the nuclear agreement, stabilizing trade and the value of the rial remains highly challenging.
