In Focus by The Hindu Iran protests explained: What’s driving the unrest?
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Jan 14, 2026 Stanly Johny, International Affairs Editor at The Hindu, delves into the roots of Iran's current protests triggered by severe economic struggles and soaring inflation. He highlights how these protests, initially focused on livelihoods, have escalated into broader political discontent. The conversation examines the impact of renewed U.S. sanctions, the significance of the Grand Bazaar's merchants, and the role of Iran's security forces. Stanly explores the unique convergence of internal and external pressures facing the regime and outlines possible future scenarios for the nation.
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Convergence Of Economic Collapse And External Threats
- The current unrest is distinct because protests spread nationwide and combine internal unrest with external attack threats.
- Sanctions, the June war and subsidy cuts caused a 60% fall in the rial and sharp inflation, triggering mass economic grievances.
Policy Shocks Amplified Living Costs
- Policy changes raised fuel and food prices after currency support was removed, intensifying public hardship.
- The rial collapsed about 60% from June to December, making cash far less effective for buying essentials.
Bazaar Strike Sparked Nationwide Unrest
- Protests began on December 28 when Tehran's Grand Bazaar merchants shut their shops in anger at economic conditions.
- Initially the government responded with restraint and promises to address traders' grievances.