Pezeshkian calls for dialogue amid Tehran protests and the collapse of the rial
In a move reflecting the depth of the economic crisis gripping the country, Iranian President Masoud Pezeshkian called for listening to the "legitimate demands" of the protesters, following the closure of shops by shop owners in the capital, Tehran, in protest against the sharp deterioration in the economic situation and the insane rise in the cost of living.
Presidential directives for dialogue
State media reported that President Pezeshkian instructed the Interior Minister to open direct channels of dialogue with representatives of the protesters. Pezeshkian stated in a post on the "X" platform: "I have asked the Interior Minister to listen to the legitimate demands of the protesters through dialogue with their representatives, so that the government can act responsibly and with all its might to resolve the problems and respond to them." The official IRNA news agency quoted the president as saying that "the people's livelihood is the government's daily concern," noting that fundamental measures are underway to reform the monetary and banking systems, placing the preservation of citizens' purchasing power at the top of the priorities.
Currency collapse and hyperinflation
These developments come as the Iranian rial has hit a new record low against the US dollar. On Sunday, in unofficial black market trading, the dollar surpassed 1.4 million rials, a dramatic jump from 820,000 rials just a year ago. This continued devaluation of the national currency is fueling hyperinflation and sharp fluctuations in the prices of basic goods, leaving citizens facing daily price changes that are placing a heavy burden on Iranian families.
Background to the crisis and political challenges
Newly elected reformist President Masoud Pezeshkian faces formidable challenges, inheriting a heavy economic burden stemming from years of international sanctions and mismanagement. The current crisis is rooted in the United States' withdrawal from the 2015 nuclear agreement and the reimposition of crippling sanctions that have crippled Iranian oil exports and isolated the banking sector from the global financial system. Pezeshkian pledged during his election campaign to work towards lifting sanctions and improving international relations to revive the economy, but both domestic and international pressures continue to pose significant obstacles to fulfilling these promises.
Implications of the "Bazaar" strike
The strike by Tehran's bazaar merchants has acquired a special significance that transcends its economic dimension. Historically, the traditional merchant class has played a pivotal role in major political transformations in Iran, including the 1979 revolution. The bazaar's actions are a sensitive indicator of the level of discontent on the Iranian street, as these merchants represent the backbone of the traditional economy and a socially influential segment of society. Observers believe that the president's swift response and call for dialogue reflect the government's awareness of the danger of the protests spreading, especially given the surrounding regional tensions that further complicate the economic and political landscape in Tehran.
