The Islamic Republic of Iran, led by the Shiʽite religious leadership, has been facing a serious economic crisis, and many Iranians have expressed frustration with the ruling leadership. Since December 2025, streets across the country have seen widespread protests reflecting public concerns about economic and political policies of the leadership that has been in power for the last fifty years.
The government reacted with full force and came down hard on the protesting masses. About 4,000 people were killed, including 200 children, 100 students, and 500 security personnel. According to some Iranian experts, over 7,000 people lost their lives due to government actions against the protestors.
The Iranian economy has been in a terrible state because of international sanctions and domestic corruption. The Iranian currency has been falling continuously, and the decision to shut down the internet has greatly affected business and commerce.
The American President, under pressure from Israel, has launched attacks on Iran. In doing so, he has damaged not only the US economy but also the world economy. One major aim of the Iranian strategy is to demonstrate to the Trump administration that it can stop the flow of oil and bring about a steep and sharp increase in the price of energy. Consequently, Iran has blocked the Strait of Hormuz, through which almost 30% of the world’s oil supply flows.
As of today, there are three main demands to be fulfilled: ending the nuclear programme and surrendering its stocks of enriched uranium, reducing the number and range of ballistic missiles, and ending support for militant groups that it funds with arms and money.
As the American and Israeli onslaught continues, Iran faces anti-regime protests across the country. The movement for the rights of women and political freedom was triggered by rising inflation and currency depreciation. The protests reflect deeper frustrations rooted in long-term corruption, economic mismanagement, political repression, and declining living standards.
As the war enters the second week, the Iranian nation stands proud and defiant against the joint onslaught of American and Israeli forces
For many Iranians, the social contract has collapsed: loyalty no longer delivers security or prosperity. The streets have once again become the primary arena for demanding change. Iran’s deteriorating economy, exacerbated by sanctions, and the regime’s inability to address grievances leave it vulnerable to recurring unrest, even if it manages to quell the current uprising.
Several scenarios are possible. The regime may consolidate authoritarian rule, risking further international isolation. It could offer limited economic or social concessions without altering the political core, but this would not resolve structural problems. Alternatively, the regime could fragment, leading to political rupture and instability. Iran is undergoing the most dramatic upheaval since the 1979 Islamic Revolution. Its economy is collapsing, and political frustration has mounted.
This discontent is occurring against the backdrop of profound Iranian weakness across the region, given that its closest partners have been devastated or deposed, including Hezbollah, Hamas, and the Assad regime in Syria. The 12-day war this summer further demonstrated the regime’s vulnerability, given how deeply Israel penetrated the Iranian leadership and its systems, and how easily the American military attacked its major nuclear sites.
The Iranian regime has said that it will not reduce uranium enrichment to zero, nor tinker with its missile programme to the point at which it does not pose a threat to Israel or, over time, develop the ability to reach space over the United States.
As the war enters the second week, the Iranian nation stands proud and defiant against the joint onslaught of American and Israeli forces. The regime has survived even after the brutal killing of its Supreme Leader and top-level leadership. Iran continues to fire missiles at American assets in the Gulf region, and the American dream of a quick regime change has not materialised so far.
“The only way to end this war – ignited by the Zionist regime and the US – is recognising Iran’s legitimate rights, payment of reparations, and firm international guarantees against future aggression,” Pezeshkian wrote. Pezeshkian’s statement comes as pressure mounts on the US to halt what has become a very costly mission.
Analysts say speculation from Washington that Iran would quickly submit after the killing of Supreme Leader Ayatollah Ali Khamenei was misguided. Tehran is likely to determine the end of this war, not the US or Israel, because of its ability to inflict economic pain broadly, they say.
Amid a military pummelling by the US and Israel, Iran has launched heavy retaliatory strikes at US assets and other critical infrastructure in Gulf countries, upsetting global supplies. It has also adopted what analysts call “asymmetric” tactics – such as disrupting the critical Strait of Hormuz and threatening US banking-linked entities – to inflict as much economic pain on the region and the wider world as it can.
Iran’s elite army unit and parallel armed force, the Islamic Revolutionary Guard Corps (IRGC), continues to show defiance, issuing threats and launching attacks on Israel and US military assets and infrastructure in neighbouring Gulf countries.