Protests break out in Tehran over economic crisis

Protests in several commercial districts of the Iranian capital continued on Monday for a second consecutive day, as anger over the country's worsening economic crisis pushed people onto the streets.

Eyewitnesses said hundreds of shopkeepers closed their businesses and urged others to join the protests, which began after the national currency, the rial, fell to a new record low within a few hours, paralysing trade and leaving markets and traders in a state of confusion.

What began as an economic protest quickly turned political, with chants such as "Death to dictator" directed against the Islamic system. Anti-riot police were deployed and used tear gas to disperse crowds, witnesses reported.

On Monday, demonstrations are said to have grown larger and more defiant. Eyewitnesses said protesters shouted slogans against the Islamic system and government, and even called for the restoration of a monarchy with chants of "Long live the king."

Local media cautiously acknowledged the protests at several bazaars and shopping centres in Tehran but avoided reporting on the harsh political slogans. Videos circulating on social media showed large crowds, though they could not be independently verified.

Observers said the sudden escalation may have been triggered by remarks from Foreign Minister Abbas Araghchi, who described international sanctions on Iran as a "problem but also a blessing for the people."

Critics questioned how poverty could be considered a "blessing" and accused the chief diplomat and the government of falling out of touch with the country's economic realities.

Inflation in Iran has for months reached astronomical levels that make even basic shopping unaffordable. Soaring rents have also forced many young Iranians to return to their parents' homes.

Iran's regional policies, its hardline stance against Israel and its controversial nuclear programme have led to international sanctions, particularly on banking and oil exports — the country's main income source. These have resulted in what many describe as the worst economic crisis in the country's history.

In a rare statement, Israel's foreign intelligence service Mossad encouraged the protesters. "Let's take to the streets together," the agency wrote on X in Farsi.

"The time has come. We are with you. Not just from afar and in words. We are also with you in the squares."

The Jerusalem Post described this as "a rare open acknowledgement of the Mossad regarding ongoing operations in Iran."

Public anger in Iran is also focused on President Masoud Pezeshkian's government, which protesters accuse of providing funds to support armed groups in the Palestinian Territories, Lebanon and Yemen instead of addressing the needs of its own people.