World Business Report Anti-government protests over the economy in Iran turn deadly
Jan 2, 2026
Dr. Sanam Vakil, a senior research fellow at Chatham House, delves into the deadly anti-government protests in Iran, triggered by a collapsing economy and currency, and how severe sanctions affect everyday Iranians. Murali Babu, president of the Federation of All India Farmer Associations, raises concerns over proposed tax hikes on cigarettes that threaten farmers' livelihoods, as he advocates for a balance between public health initiatives and agricultural support. Together, they provide a gripping look at economic turmoil and its human cost.
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Economic Collapse Is The Protest Spark
- Iran's protests are driven primarily by a collapsing currency and runaway inflation rather than a single political event.
- Sanam Vakil warns sanctions, frozen oil revenues and subsidy pressures have created a prolonged economic crisis fueling unrest.
A Protester's Personal Plea
- A young Iranian protester told the BBC she faces daily brutality and wants freedom even at the cost of her life.
- Her words captured personal desperation driving people onto the streets amid economic collapse.
Government In A Policy Bind
- The Iranian government faces limited policy space because subsidies and locked foreign revenues constrain options.
- Vakil expects a standoff for weeks with protests persisting in smaller towns and the risk of resurgence later.