Iran Protests Spread as Government Plans Risky Economic Reforms Amid Rising Inflation
January 6, 2026
Iran is facing nationwide protests now in their ninth day. The protests have spread to 26 out of 31 provinces. A US human rights group says over 20 people have died and nearly 1,000 arrested. Protesters demand political change, less corruption, and relief for the poor amid soaring inflation, which hit 52.6% in December. Iranian President Masoud Pezeshkian announced ending the old system of foreign exchange subsidies that fuelled corruption. Instead, subsidies will go directly to consumers. This may cause short-term food price rises. Pezeshkian said, "We are not removing subsidies, we are delivering them to the final consumers." Police arrested students at the University of Birjand as protests continued. The judiciary head, Gholamhossein Mohseni Ejei, said the period of "concessions and appeasement" to protesters is over. He blamed the US and Israel for supporting unrest. US President Donald Trump promised to defend protesters if attacked, warning Iran against violence. Iran’s foreign ministry called Trump's words "psychological warfare." Reform leaders demanded justice for protesters shot inside a hospital in Ilam province. Azar Mansouri wrote on social media, "Identify the perpetrators, introduce them to the public, and bring them to justice so that this wound can heal a little." UN Secretary-General António Guterres urged Iran to respect peaceful protests and prevent more casualties. Israeli Prime Minister Benjamin Netanyahu said the protests might mark a defining moment for Iran. Iran's economic future depends on handling US sanctions, corruption, inflation, and shortages in electricity and water that hinder production. The parliament is reviewing budget changes including increased pay rises, VAT cuts, and $8.8 billion in subsidies on foreign exchange to control prices of basic goods. Funds for wheat purchases and pension adjustments are also planned.
Read More at Theguardian →
Tags:
Iran Protests
Economic reforms
Inflation
Foreign Exchange Subsidies
Us sanctions
Human rights
Comments