Widespread Iran Economic Protests Escalate as Tehran Businesses Close and Riot Police Use Tear Gas
Iranians marched across Tehran on December 29, 2025, protesting soaring inflation, a collapsing rial and energy shortages; businesses closed for a second day while riot police deployed tear gas as authorities sought to disperse crowds.
- Widespread economic protests: Demonstrations in Tehran on Dec. 29 focused on inflation, a plunging currency and energy shortages.
- Business disruption: Many Tehran shops closed for a second consecutive day, signaling sharp local impacts on commerce.
- Security response: Riot police reportedly used tear gas to disperse crowds in parts of the capital.
- Confirmed sources: Reporting by RFE/RL supports these core facts; several other claims remain unverified.
Key information
Protests erupted across Tehran on December 29, 2025, centered on economic grievances tied to high inflation, a plunging currency and shortages linked to an energy crisis. These events led many businesses in Tehran to close for a second straight day. Source: RFE/RL.
Security forces used tear gas in parts of Tehran to try to disperse demonstrators, with reporting that documented clashes in the capital. Source: RFE/RL.
Iran’s currency hit a record low on foreign exchange markets in the days before the demonstrations, deepening public anger over falling living standards. Source: RFE/RL.
Available reporting confirms significant unrest in Tehran and widespread business closures there. Other claims about protests spreading to additional cities, shutdowns of specific commercial hubs such as the Grand Bazaar, and particular chants or named participants could not be fully corroborated from the sources reviewed. Source: RFE/RL.
What happened on the streets
On December 29, crowds gathered in parts of Tehran to voice anger over the cost of living and shortages that have eroded household budgets. In response, security forces moved into some neighborhoods. RFE/RL documented the use of tear gas against demonstrators as authorities tried to clear streets in the capital. The clashes reflected deep frustration among ordinary Iranians as economic pain has increased over months. Source: RFE/RL.
“The clashes reflected deep frustration among ordinary Iranians as economic pain has increased over months.”
Local business activity slowed sharply. Many shops and small businesses in Tehran remained closed for a second day, dealing a blow to commerce and signaling either solidarity with demonstrators or fear of escalation. Reporting confirms widespread closures in Tehran, though open-source accounts did not provide exhaustive lists of affected markets or districts. Source: RFE/RL.
Scope and limits of confirmed reporting
The available reporting reliably documents major protests and closures in Tehran and links the unrest to an acute economic crisis and a currency collapse. However, several widely circulated details remain unverified in the public record reviewed here.
- Geographic limits: RFE/RL confirmed unrest in Tehran but did not fully verify whether the protests had spread to Mashhad or whether a coordinated nationwide strike shut every major commercial hub. Source: RFE/RL.
- Unverified claims: Reports attributing specific chants, precise crowd counts, or instances where security forces retreated from multiple areas could not be corroborated by the reviewed reporting.
- External statements: Statements attributed to international figures urging Iranians to rise up appeared in social posts but were not confirmed by the RFE/RL reporting used for this article.
Because detail and confirmation are essential in investigative reporting, these points are flagged as needing further verification from additional on-the-ground and independent sources. Source: RFE/RL.
Economic drivers behind the unrest
The protests are tied closely to Iran’s mounting economic problems. The rial fell to record lows on foreign exchange markets in late December, eroding household savings and making imports more expensive. Soaring inflation has increased the price of food, fuel and other essentials. RFE/RL reported that the currency crisis and high inflation were central grievances motivating demonstrators. Source: RFE/RL.
An energy crunch — including shortages and disruptions affecting heating and transport — has compounded public anger. For many Iranians, a collapsing standard of living became the immediate trigger for protests rather than abstract political grievances. Those economic pressures also affect businesses, which face rising costs and dwindling customers when unrest keeps people home. Source: RFE/RL.
Security response and government posture
Iranian authorities used standard crowd-control measures, including tear gas, to try to contain protests in Tehran. Such tactics are consistent with past responses that aim to limit public gatherings and quickly re-establish order. RFE/RL documented tear gas use on December 29. At the time of filing, detailed official statements quantifying arrests or injuries were not available in the reviewed reporting. Source: RFE/RL.
International attention and claims requiring verification
The demonstrations drew attention beyond Iran’s borders, and some international figures commented on the unrest in social media and other channels. However, specific claims circulating online — including direct calls from named foreign leaders urging protesters to rise up — were not independently verified in the RFE/RL reporting used for this article. For accuracy, such statements should be confirmed from primary sources before being treated as established fact. Source: RFE/RL.
Implications for United States of America
Economic:
- Oil and energy markets: A significant upheaval in Iran could affect oil markets depending on export disruptions or changes in regional tensions; U.S. energy consumers would watch markets for price volatility.
- Sanctions enforcement: Renewed instability could influence U.S. policy on sanctions; Washington might tighten or loosen measures depending on unrest, human rights concerns and regional security.
Political:
- U.S. foreign policy options: Large-scale unrest presents moral and strategic choices; some conservative audiences favor stronger diplomatic pressure and non-lethal assistance to uphold human rights.
- Regional stability and allies: Instability in Iran affects U.S. allies in the Middle East, prompting attention to bolstering partner security.
Social and cultural:
- Iranian-American communities: Protests reverberate among the U.S.-based Iranian diaspora and raise concern for families with relatives in Iran.
- Narrative about governance: The events underscore the consequences of economic mismanagement and corruption for conservative arguments favoring limited engagement with regimes that fail to provide basic needs.
Practical applications for the U.S. public:
- Travel and safety: Americans traveling in the region should monitor official travel advisories and avoid demonstrations and large gatherings.
- Policy advocacy: Citizens and advocacy groups can press Congress and the administration to review options including targeted sanctions, information access support inside Iran, and humanitarian channels that avoid propping up the regime.
What reporters still need to confirm
To build a fuller picture, reporters should seek on-the-ground confirmation about:
- The geographic spread of protests beyond Tehran, including Mashhad and other cities.
- The scale and coordination of strikes and whether major markets such as the Grand Bazaar shut down as part of organized action.
- Verified statements from international figures and the timelines of any cross-border appeals.
- Official Iranian figures on arrests, casualties and government responses.
The RFE/RL reporting provides a clear foundation tying the protests to a currency crisis and severe inflation, but independent verification and additional sources are needed to fully document nationwide dimensions of the unrest. Source: RFE/RL.
