Iran's Rial Hits Historic Low As Economic Crisis Fuels Social Unrest

Iran's national currency, the rial, has plunged to a historic low, reflecting the deepening economic crisis driven by years of international sanctions, persistently high inflation, and restrictions on oil exports. As a result, the rial's value against major currencies such as the US dollar and the euro has effectively collapsed, Azernews reports.

The sharp depreciation has further intensified social tensions across the country, adding momentum to protests that have been ongoing since December 28, 2025. Reports indicate that hundreds of people have been killed during the demonstrations, while thousands more have been detained by security forces.

Alongside the currency collapse, inflation has accelerated, leading to a steep rise in the prices of food and basic consumer goods. The growing cost-of-living burden has emerged as a key source of public anger, with many Iranians struggling to afford essential items.

The worsening economic conditions and continued unrest highlight the mounting pressure on Iran's economy and society, as financial instability increasingly translates into broader political and social challenges.

Initially sparked by frustration over record-high inflation, food prices, and currency depreciation, the protests quickly evolved into a broader movement demanding an end to the current regime.

Beginning with the bazaari (shopkeepers and merchants) in Tehran's Grand Bazaar and later university students, the demonstrations soon spread not only to major cities but also small settlements chanting anti-government slogans and destroying symbols of the government and the IRGC.

MENAFN13012026000195011045ID1110590497