Demonstrations across Iran, initially sparked by economic hardship and the sharp fall of the national currency, continued for a third day on Tuesday, drawing in university students as authorities deployed force and made multiple arrests.
Protests spread across Iran on Tuesday, with universities and commercial districts emerging as key hubs amid a widening strike by shopkeepers in Tehran and other cities.
Human rights and student groups said at least 11 protesters were arrested near Tehran’s Shoush Square.
Five students were also detained at universities in the capital, four of whom were later released.
Student outlets reported that one student at Tehran’s Amirkabir University was severely injured during a campus crackdown after members of the Basij militia of the Islamic Revolutionary Guard Corps attacked their gathering.
Videos circulating on social media showed students chanting anti-government slogans, dismantling signs linked to the office of the Supreme Leader’s representatives and confronting security forces at campus gates.
In some clips, officers appeared to retreat as crowds advanced; in others, security forces were seen firing tear gas and, in several locations, shooting toward demonstrators.
The protests coincided with the government’s announcement that public offices would close in nearly 25 provinces, including the capital on Wednesday - a move officials said was necessary to conserve energy amid a severe cold snap. However, online weather data showed no significant drop in temperatures.
The unrest began Sunday after shopkeepers in several Tehran malls and later the Grand Bazaar launched a strike in response to the rial hitting a record low against the US dollar.
Since then, videos verified by Iran International have documented protests in Tehran, Karaj, Qeshm Island, Isfahan, Kermanshah, Shiraz, Yazd, Kerman and several other cities.
Government spokeswoman Fatemeh Mohajerani acknowledged widespread frustration, saying the protests reflected “intense economic pressure” and that peaceful assembly is recognized under Iran’s constitution.
President Masoud Pezeshkian said he instructed the interior minister to engage in dialogue with representatives of the demonstrators to hear their “legitimate” demands. He later attended a meeting with a handpicked group of trade officials on Tuesday.
Heavy security deployments were reported in Tehran, Mashhad, and Kermanshah, with residents describing checkpoints, constant patrols, and the presence of both uniformed and plainclothes officers.
In Hamadan, footage appeared to show security forces opening fire toward protesters, while riot police in Tehran and the nearby city of Malard used tear gas to disperse crowds.
Demonstrations were held on Tuesday night in several parts of Iran, and are expected to continue into a fourth day, with more Iranian businesses announcing on social media that they will close in solidarity with the movement.
Historically, in Iran, religious institutions and conservative merchants—the Bazaaris—were inseparable allies. It was the Bazaaris who bankrolled the anti-state revolution of 1979, famously chartering the plane that carried Ayatollah Khomeini back to Tehran.
Yet, 46 years later, the Islamic Republic has managed to alienate its oldest and most critical constituency. For the Iranian merchant today, that alliance is dead, and commerce has become a losing game.
Despite having no hand in inflation, merchants are often blamed as price gougers. If they reject state-mandated pricing, they are accused of hoarding and tampering with the market; if they comply, they may not be able to afford to restock their inventory, selling their way into bankruptcy.
Simultaneously, the centralized allocation of foreign currency for imports drags on for months, while exporters are forced to sell their hard-earned foreign currency at losses due to state pressure.
The atmosphere grew more volatile last week with the announcement of a new gasoline pricing policy, which exacerbated existing anxieties about the economy.
The release of the next year’s budget was the last straw. With oil revenues projected to cover a mere 5% of administrative costs, the government wants the public to foot the bill through deficit spending and significant tax increases.
The trade-off is stark: while every subsidy has been stripped from the ledger, the budget for security and defense has increased. By prioritizing the military and security over public welfare, the state has effectively transferred the entire burden onto the people’s dinner tables.
The market is rejecting this pressure. Merchants argue that they are being suffocated to fund the state's regional ambitions. Facing chronic 60% inflation and the weight of sanctions, business owners can no longer survive, let alone profit.
The message from the bazaar is clear: the economy cannot sustain the vows to rebuild the missile arsenal.
The state’s response to the protests has been predictable: a photo-op meeting with a handpicked group of supportive businessmen and the scapegoating of the Central Bank Governor.
The dismissal of Mohammad-Reza Farzin had been on the table for months, held in reserve as a sacrificial offering. Now, with protests spreading throughout the country, the administration offers his firing as a promise of change.
But the Iranian people see through this theater. They know the Central Bank Governor is not an independent policymaker, but a mere functionary. Replacing him with Abdolnaser Hemmati—a recycled official previously fired from the same post over rial's devaluation—signals continuity, not reform.
Public slogans reveal that the bazaar and the street are now speaking with one voice. The grievances have moved beyond daily economics; they challenge the specific governing priorities that drive this decline. The public understands that their economic distress is not an accident of mismanagement, but the calculated cost of the state's strategic choices.
This leaves the Islamic Republic with a binary choice: abandon regional ambitions and missile proliferation to return to the negotiating table, or double down on repression.
As evidenced by the direct fire opened on protesters yesterday, the regime has chosen the path of force. The market’s message is unmistakable: the people want fundamental change. The government’s answer is not reform, but bullets.
