Safety forces conflict with protesters in Iran’s major market as demise toll rises

DUBAI, United Arab Emirates — Protesters indignant over Iran’s ailing economic system carried out a sit-in Tuesday at Tehran’s Grand Bazaar, witnesses mentioned, with safety forces in the end firing tear fuel and dispersing demonstrators as the remainder of the market shut down.

The protest on the Grand Bazaar, the beating coronary heart for hundreds of years of each Iran’s financial and political life, represented the most recent sign that the demonstrations seemingly are to proceed because the rial forex fell to a file low Tuesday. Already, violence surrounding the protests has killed a minimum of 36 folks with authorities detaining greater than 2,000 others, activists overseas say.

In the meantime, the state of affairs was prone to worsen as Iran’s Central Financial institution drastically diminished the sponsored alternate charges for {dollars} it affords to importers and producers. That seemingly will see retailers go value hikes on to customers, whose life financial savings have already got dwindled over years of sanctions focusing on the Islamic Republic.

Iran’s reformist President Masoud Pezeshkian, whereas ordering a authorities investigation into one incident involving the protests, in any other case signaled Tuesday that the disaster could also be quickly shifting past the management of officers.

“We should not expect the government to handle all of this alone,” Pezeshkian mentioned in a televised speech. “The government simply does not have that capacity.”

Turmoil shakes Grand Bazaar

Within the Grand Bazaar, a labyrinth-like warren of coated passages and alleyways, demonstrators sat down in a single passage in entrance of safety forces as different retailers close by shut down Tuesday, on-line movies confirmed and witnesses mentioned. Different demonstrations equally have seen folks sit down in entrance of police after a photograph circulated earlier of a person seen sitting alone in entrance of safety forces.

Authorities later fired tear fuel to disperse the protesters. Iranian state-run media didn’t instantly acknowledge the incident, which has been frequent within the days for the reason that demonstrations started on Dec. 28. Later footage purportedly confirmed tear fuel at a hospital and a metro station in Tehran.

Iran has confronted rounds of nationwide protests lately. As sanctions tightened and Iran struggled after a 12-day battle with Israel in June, its rial forex collapsed in December, reaching 1.4 million to $1. Protests started quickly after, with demonstrators chanting in opposition to Iran’s theocracy.

On Tuesday, $1 traded at 1.46 million rials, a brand new low, with no indicators of slowing. Previous to Iran’s 1979 Islamic Revolution, the rial was broadly steady, buying and selling at round 70 to $1. On the time of Iran’s 2015 nuclear take care of world powers, $1 traded for 32,000 rials.

An interactive map of protests in Iran from December 29, 2025, to January 5, 2026.

Will Jarrett/AP

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Will Jarrett/AP

Alternate fee change factors to extra ache coming

Extra ache could also be coming for Iranian customers. Iran’s Central Financial institution in latest days ended a preferential, sponsored dollar-rial alternate fee for all merchandise besides medication and wheat. Iran’s authorities had supplied that fee to importers and producers to attempt to make sure the circulate of important items regardless of worldwide sanctions over its nuclear program and different points.

Nonetheless, a lot of these companies took benefit of the distinction in charges, pocketing ever-greater income as regular Iranians watched their financial savings quickly lose worth in opposition to the greenback.

The forex and fee depreciation has straight impacted what’s available in shops — and at what value. The common bottle of cooking oil simply doubled in value, the state-run IRNA information company reported. Many have complained about cabinets being empty in shops, seemingly as suppliers and retailers concern promoting cooking oil at a loss. Cheese and hen costs additionally spiked, whereas imported rice hasn’t been out there in some retailers.

Pezeshkian in his speech blamed inflation, sanctions and different woes for inflicting the depreciation — and warned harder occasions could also be coming.

“If we do not make realistic decisions, we ourselves will push the country toward crisis and then complain about the consequences,” he warned.

Iran guarantees Ilam investigation

Late Monday, Pezeshkian assigned the inside ministry to type a particular group for a “full-fledged investigation” of what had been taking place in Ilam province. Protesters in Malekshahi County in Ilam province, some 515 kilometers (320 miles) southwest of the capital, Tehran, have been killed as on-line movies purported to indicate safety forces firing on civilians.

The presidency additionally acknowledged an “incident in a hospital in the city of Ilam.” On-line video confirmed safety forces sporting riot gear raiding a hospital, the place activists mentioned they have been looking for demonstrators.

The hospital assault drew criticism from the U.S. State Division, which in Iran’s Farsi language referred to as the incident “a crime.”

“Storming the wards, beating medical staff and attacking the wounded with tear gas and ammunition is an clear crime against humanity,” a publish on the social platform X learn. “Hospitals are not battlefields.”

A report by the semiofficial Fars information company earlier alleged with out providing proof that demonstrators carried firearms and grenades. Tuesday night time, Fars reported that an indignant crowd from a funeral for 2 of the useless stormed and broken three banks in Malekshahi, main to 1 individual being killed and several other wounded.

Ilam province is principally dwelling to the nation’s Kurdish and Lur ethnic teams and faces extreme financial hardship.

Protester deaths a spotlight of Trump

The U.S.-based Human Rights Activists Information Company supplied the most recent demise toll of 36 for the demonstrations. It mentioned 30 protesters, 4 kids and two members of Iran’s safety forces have been killed. Demonstrations have reached over 280 places in 27 of Iran’s 31 provinces.

The group, which depends on an activist community inside Iran for its reporting, has been correct in previous unrest.

Fars, believed near Iran’s paramilitary Revolutionary Guard, reported late Monday that some 250 law enforcement officials and 45 members of the Guard’s all-volunteer Basij drive have been harm within the demonstrations.

The rising demise toll carries with it the prospect of American intervention. U.S. President Donald Trump warned Iran on Friday that if Tehran “violently kills peaceful protesters,” the USA “will come to their rescue.” Supreme Chief Ayatollah Ali Khamenei on Saturday mentioned “rioters must be put in their place.”

Whereas it stays unclear how and if Trump will intervene, his feedback sparked a right away, indignant response, with officers throughout the theocracy threatening to focus on American troops within the Mideast. The feedback took on new significance after the U.S. army on Saturday captured Venezuelan President Nicolás Maduro, a longtime ally of Tehran.