Security forces in Iran used tear gas on Tuesday to break up protests at Tehran’s famous bazaar as demonstrations against rising prices and economic hardship continued across the country. According to a non-government organisation, more than two dozen people have been killed so far in the government crackdown on what is the biggest wave of unrest Iran has seen in the past three years.

The protests are mainly driven by anger over the country’s worsening economy. Iran’s currency, the rial, fell again on Tuesday, reaching a new record low against the US dollar. On the informal market, one dollar was being sold for around 1.47 million rials, making everyday items even more expensive for ordinary people.

Large protests have also been reported in the western city of Abdanan, where thousands of people gathered on the streets. Videos circulating on social media show demonstrators chanting slogans such as “Long Live the Shah,” a reference to Iran’s former monarchy that was overthrown in the 1979 Islamic Revolution.

The protest movement began on December 28 when shopkeepers in Tehran’s bazaar shut their businesses in protest. The demonstrations later spread to other parts of the country, especially western Iran, which has large Kurdish and Lor populations. While the current protests are smaller than the mass movements seen in 2009 and during 2022–2023 after the death of Mahsa Amini, they still pose a serious challenge to the Iranian leadership.

Amid the unrest, Iran’s exiled crown prince, Reza Pahlavi, has made his first public call to action. In a message to Iranians, he urged people to chant slogans at exactly 8 pm on January 8 and 9, whether on the streets or from their homes. He said future actions would depend on the public’s response.

State media said police dispersed protesters near the bazaar, while videos verified by news agencies showed people shouting slogans against Supreme Leader Ayatollah Ali Khamenei and in support of the former royal family. Iran’s official news agency confirmed that some people were arrested but did not give numbers.

Meanwhile, reports claim that Iranian-backed militias from Iraq are helping suppress the protests. These fighters are allegedly entering Iran under the guise of religious pilgrimages and are being sent to different regions to assist security forces.

The Iranian government has promised economic reforms to ease public anger. President Masoud Pezeshkian announced plans to stabilise the banking system and protect people’s purchasing power. The government has also announced direct cash payments to citizens, replacing discounted currency rates for importers. These measures are set to begin on January 10, though authorities have warned that there will be no tolerance for what they call “rioters.”