TEHRAN — Iran’s centuries-old Grand Bazaar became the epicenter of a violent confrontation on Tuesday as security forces deployed tear gas to disperse demonstrators protesting a catastrophic economic collapse.3 The unrest, which began in late December, has now reached a critical threshold, with human rights organizations reporting at least 36 deaths across 27 provinces.4+1
The strike at the Grand Bazaar—historically the “beating heart” of Iranian commerce—marks a significant escalation.5 Shops were shuttered as merchants joined a sit-in, reacting to the rial hitting an all-time low of 1.46 million to the U.S. dollar.
Economic Statistics and Pricing Surge
The crisis has been exacerbated by the Central Bank of Iran’s decision to drastically reduce subsidized exchange rates for importers.6 This move has triggered an immediate and sharp spike in the cost of essential goods.7
| Item | Status / Price Change |
| Cooking Oil | Prices doubled (100% increase) in some regions |
| Chicken & Cheese | Spiked by over 30% in one week |
| Imported Rice | Increasingly unavailable in major urban centers |
| Point-to-Point Inflation | Reported at 52.6% as of late December |
Government Response and Hospital Raids
President Masoud Pezeshkian signaled a potential loss of administrative control during a televised address Tuesday, stating, “The government simply does not have the capacity” to handle the crisis alone. While he ordered an investigation into violence in Ilam province, reports surfaced of security forces in riot gear raiding a hospital in Ilam to detain wounded protesters.8
The U.S. State Department condemned the hospital raids, labeling the targeting of medical facilities a “crime against humanity.”
Demographics of the Unrest
The current wave of demonstrations is heavily concentrated in provinces like Ilam, which is home to Kurdish and Lur ethnic groups facing severe economic marginalization.9 Human rights activists note that the crackdown has become increasingly indiscriminate.10+1
- Total Locations: Protests documented in over 280 locations.11
- Total Detentions: More than 2,000 people have been arrested.12
- Child Fatalities: At least 4 children are confirmed among the dead.
