Iran is facing its most serious unrest in years as economic protests turn deadly and spread nationwide. Rights groups say dozens have been killed, thousands detained and the government is signaling it will not back down.

The demonstrations began as an economic revolt. They are now testing the country’s political fault lines.

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From prices to power

The protests erupted in late December 2025 after another sharp drop in the rial, which has slid to record lows against the dollar. Inflation is hovering near 40%, and basic goods have surged in price.

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As of Jan. 7, 2026, 42,000 Iranian rials equaled one U.S. dollar.

Shopkeepers were first into the streets. University students followed. Within days, protests had reached most of the country.

Videos verified by BBC Persian show security forces firing tear gas at crowds on Tuesday chanting “death to the dictator” inside Tehran’s Grand Bazaar. Markets shut down. Streets filled with protesters. Riot police moved in.

ReutersCourtesy: Reuters

Death toll rises, arrests soar

Human rights groups said at least 25 to 36 people have been killed over the past 10 days, including children. More than 1,000 people have been arrested, according to Reuters.

Iranian authorities have not released an official death toll. They acknowledged that two members of the security forces were killed and say dozens of officers have been injured.

The Human Rights Activists News Agency (HRANA) reported that protests have spread to 27 of Iran’s 31 provinces, with unrest reaching smaller cities and poorer regions hit hardest by inflation.

Hospitals raided, families warn escalation

Footage from western Iran shows security forces raiding a hospital in Ilam where wounded protesters were reportedly sheltering, according to the Associated Press. Amnesty International said police and Revolutionary Guard units fired tear gas, smashed doors and beat people inside, including medical workers.

Parents of detained minors have issued public ultimatums, warning authorities to release their children or face larger demonstrations.

Iran’s judiciary said it will show no leniency toward what it calls “rioters,” even as officials claim they are open to hearing economic grievances.

Leadership digs in

Supreme Leader Ayatollah Ali Khamenei has ordered security forces to put protesters “in their place” and vowed not to yield. Police leadership has pledged to arrest those identified as instigators.

Office of the Supreme Leader of Iran via Getty ImagesTEHRAN, IRAN – JUNE 26: (EDITOR’S NOTE: This Handout image was provided by a third-party organization and may not adhere to Getty Images’ editorial policy.) In this photo released by the official website of the Supreme Leader’s Office on Thursday, June 26, 2025, Iranian Supreme Leader Ayatollah Ali Khamenei appears among his supporters for the first time since the Iran-Israel war, in Tehran, Iran. (Photo by Office of the Supreme Leader of Iran via Getty Images)

President Masoud Pezeshkian has promised reforms and announced an investigation into deaths in Ilam province, while warning that tougher economic decisions may still lie ahead.

The government is also moving forward with subsidy changes that analysts say could drive prices even higher in the coming weeks.

International pressure grows

The United Nations said it is “deeply saddened” by the loss of life and is urging restraint. Secretary-General Antonio Guterres has called for the respect of peaceful protest rights.

As Straight Arrow News reported, President Donald Trump warned last week that the United States is prepared to intervene if Iranian security forces continue killing peaceful protesters. Iranian officials responded angrily, accusing Washington of interference and threatening retaliation.

The warning comes days after U.S. forces captured Venezuela’s president, a longtime ally of Tehran — a move that has sharpened tensions and raised fears of wider confrontation.