Driven by the recently intensified economic crisis and high inflation, Iran has witnessed massive protests. According to Dr. Ali Fatholla-Nejad, these protests initially originated among merchants, who were particularly affected by rising prices. As a result of U.S. sanctions, inflation in Iran reached levels of up to 50 percent. The country’s economic malaise, he argues, has led to a loss of authority on the part of the Supreme Leader. Corruption and mismanagement have further exacerbated this erosion and fueled public anger.
The protests were triggered by the regime’s plan to compensate for declining oil revenues through increased taxation. In light of soaring inflation and ongoing economic sanctions, this proposal met with widespread incomprehension and outrage among the population, especially among Tehran’s merchant community. Dr. Fatholla-Nejad emphasized that the regime prioritizes financing its own survival. Expenditures on the military and security apparatus, as well as on the clergy, take precedence over public welfare. The population increasingly assigns responsibility to the regime itself and is demanding change. According to Dr. Fatholla-Nejad’s assessment, the government’s power base is eroding and may no longer be sufficient to sustain the regime in the future.