MORE THAN 6 DEATHS IN IRAN: DEMONSTRATIONS OVER RISING COST OF LIVING EXPAND

TEHRAN — Demonstrations over the rising cost of living in Iran resulted in at least six fatalities on 1 January 2026 as protests expanded from the capital into several rural provinces. The deaths, reported by media and human rights organisations, occurred during the fifth consecutive day of unrest sparked by a rapid depreciation of the national currency and soaring inflation.

Security Forces And Societies Clash In Western Provinces

The fatal incidents took place primarily in the western regions of the nation, marking a significant escalation since the current wave of dissent began on 28 December 2025. According to the semi-official Fars news agency, three individuals were killed in the city of Azna, located in Lorestan province, approximately 300 kilometres southwest of Tehran. In the city of Lordegan, within the Chaharmahal and Bakhtiari province, at least two protesters were reported dead.

The government of President Masoud Pezeshkian confirmed the death of a 21-year-old member of the Basij paramilitary force in the city of Kuhdasht. Said Pourali, the Deputy Governor of Lorestan province, stated that the security official was killed by “rioters” while attempting to maintain public order. Additionally, authorities reported that 13 police officers and Basij members sustained injuries during the clashes.

Economic Instability And The Rising Cost Of Living

The primary catalyst for the unrest is a deepening economic crisis and a sharp decline in the purchasing power of the society. On 29 December 2025, the Iranian rial fell to a record low of approximately 1,4 million per United States dollar, representing a 56% decrease in value over a six-month period.

• Inflation and Commodities: Skyrocketing food prices and utilities have left many middle-class families unable to cover basic expenses.
• Trade Strikes: The movement began in Tehran when bazaar merchants and shopkeepers staged strikes to protest economic stagnation.
• Student Involvement: Demonstrations expanded on 30 December 2025 as students from at least 10 universities joined the movement, leading to closures of academic institutions in 26 provinces under the guise of “cold weather”.

According to the Oslo-based Hengaw Organisation for Human Rights, security forces have utilised live ammunition and water cannons to disperse crowds in several cities. In Tehran, the intelligence services reported the arrest of 30 individuals for alleged public order offences.

Government Response And Institutional Changes

President Masoud Pezeshkian has acknowledged the “legitimate demands” of the society regarding livelihoods, stating that the government must address economic pressures to maintain stability. In an effort to mitigate the crisis, the President announced on 1 January 2026 that the state would terminate the distribution of heavily subsidised exchange rates, arguing that the system fostered corruption rather than aiding consumers.

The government has implemented several personnel changes in response to the volatility:

• Central Bank: Mohammad Reza Farzin resigned as the head of the Central Bank of Iran and was replaced by Abdolnaser Hemmati.
• Security Command: Ahmad Vahidi, a figure previously sanctioned by European and neo-European states for his role in suppressing previous demonstrations, was appointed as the deputy commander of the Islamic Revolutionary Guard Corps (hereinafter: IRGC).

Concluding Outlook

The current development indicates that the government of Iran is pursuing a dual-track strategy to contain the unrest. Institutionally, the government is attempting to defuse economic grievances through technical currency reforms and the redistribution of subsidies directly to the final consumer. However, the appointment of Ahmad Vahidi to a senior IRGC role suggests a readiness to intensify the security response should the demonstrations continue to expand into rural regions.

While the government maintains a conciliatory public tone regarding the right to protest, the deployment of live fire and widespread arrests signify a narrowing window for a purely diplomatic resolution. The sustainability of the protest movement will likely depend on whether trade unions join the merchants in a general strike, which would further paralyse the nation’s fragile economy.

With the pressuring sanctions on the Iranian economy, the depreciation of its rial is a natural consequence. So far, the government shows empathy towards the protests, but also needs to ensure public order - in the end, a new government will face the same economic constraints. On the other hand, the Iranian population has shown itself to be understanding and patient until now; they are right, too, in asking for the economic hardship to end. If the Iranian government can channel this mutual understanding into an agenda that is more uniting against the external force, rather than dividing the society at home, a sustainable economic solution can surely be found.