By Pishtaz | 2026-01-07

In recent weeks, Iran has experienced one of its largest protest waves in years, highlighting renewed public frustration with the regime’s policies.

The unrest stems not only from economic despair but also from anger at a regime that prioritizes nuclear, missile, and proxy ambitions over ordinary Iranians’ welfare.

These protests highlight a stark contrast between the Iranian government’s external priorities and the bleak economic reality at home.

The current unrest began on December 28, 2025, when shopkeepers and merchants in Tehran’s historic bazaars closed their stores and marched in the streets.

They protested worsening economic conditions, including soaring inflation and a collapsing currency as the rial reached record lows against the US dollar.

These early demonstrations, initially focused on livelihoods and economic mismanagement, quickly spread to other cities and broad segments of society, including students, workers, and activists.

As the movement grew, chants shifted from economic demands to overtly anti-regime slogans rejecting the regime's leadership.

Slogans like "Neither Gaza nor Lebanon, my life for Iran" reflect anger over resources spent on foreign conflicts while Iranians struggle to afford basic necessities.

Sending billions of dollars abroad

The protests demonstrate a wider frustration among Iranians over Tehran’s foreign policy decisions and the government’s prioritization of external ambitions over domestic needs.

For decades, Tehran has funded allied militant groups, known as the "Axis of Resistance," including Hizbullah, Hamas, and Yemen’s Houthis.

Estimates suggest billions of dollars have been spent sustaining these alliances and supporting proxy conflicts, expenditure that critics argue has come at a heavy cost domestically.

At the same time, Iran’s pursuit of nuclear capabilities and advanced missile systems has drawn heavy pressure on the country's economy.

Some analyses estimate that the total cost of Iran’s nuclear program through 2025 could approach $500 billion, while continued support for proxies further drains public finances.

Skyrocketing inflation

The economic consequences of government policies are painfully visible on the streets of Iranian cities, where soaring prices and scarcity affect everyday life.

Inflation has soared, essentials are costly, and many educated young Iranians cannot find stable work or afford basic living expenses, fueling talk of a "hunger revolution."

Officials have attempted to quell unrest with both limited economic concessions -- such as appointing a new central bank governor -- and warnings of decisive action against unrest.

Security forces were deployed to control protests, while the regime used state media and internet restrictions, showing how seriously it views the threat of mass dissent.

Yet the distrust between those in power and its citizens runs deep, reflecting widespread frustration and disillusionment with their current priorities.