Iran’s Currency Crisis Deepens as Rial Hits Record Low

TEHRAN, IRAN — JANUARY

Iranian President Masoud Pezeshkian issued a stark warning on Tuesday, stating that the government lacks the capacity to manage the country's worsening economic crisis alone as the national currency hit a historic low against the US dollar.

The Iranian rial plummeted to 1.46 million per dollar, sparking fresh waves of anger across the country. In the capital, merchants in the historic Grand Bazaar shuttered their shops and launched sit-in protests, signaling a deepening rift between the merchant class and the administration over chronic hyperinflation and the collapse of purchasing power.

Subsidy Cuts Fuel Market Panic

The latest turmoil follows a decision by the Central Bank of Iran to sharply reduce subsidized exchange rates previously available to importers and manufacturers. While the government maintained these preferential rates for years to ensure the supply of basic goods under international sanctions, officials now admit the system has been drained.

According to the state-linked news agency IRNA, the price of basic staples such as cooking oil has doubled overnight. Residents in Tehran report that shelves are emptying as suppliers refuse to sell at a loss, with essential items like rice, cheese, and chicken becoming increasingly scarce or unaffordable for the average citizen.

Rising Death Toll and Social Unrest

The Human Rights Activists News Agency (HRANA) reported that at least 36 people, including four children, have been killed since the current wave of protests began in December. The unrest has reportedly spread to over 270 locations across 27 of Iran's 31 provinces.

"If we do not make realistic decisions, we will drive the country into a crisis ourselves and then complain about the results," Pezeshkian said in a televised address, acknowledging that the crisis is rapidly outpacing official intervention efforts. Meanwhile, security forces have reportedly detained more than 1,200 individuals as authorities attempt to quell the uprising.

International Pressure and Potential Intervention

The escalating violence has caught the attention of Washington. US President Donald Trump warned Tehran on Friday that the United States would "come to help" if the Iranian government continued to "violently kill peaceful protesters."

The tension is further amplified by recent regional developments, including a US military operation in Venezuela that resulted in the capture of Nicolas Maduro, a long-time ally of Tehran. In response, Iranian Supreme Leader Ayatollah Ali Khamenei has called for the "rioters" to be put in their place, while hardline officials have issued retaliatory threats against US military assets in the Middle East.

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