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Iran unrest: Security forces fire tear gas at Tehran bazaar, death toll rises to 36

Security forces clashed with protesters across Iran as demonstrations over rising living costs continue, leaving at least 36 dead and thousands detained.

January 07, 2026 / 09:14 IST
Tear gas fired at Tehran bazaar as Iran reels from nationwide economic protests
Snapshot AI
  • Tehran's Grand Bazaar protests dispersed by tear gas from security forces.
  • At least 36 deaths and over 2,000 arrests reported amid nationwide unrest
  • Iran's currency hits record low, sparking protests in 280+ locations across 27 provinces

Security forces in Iran fired tear gas on Tuesday to disperse demonstrators at Tehran’s Grand Bazaar, as protests over the rising cost of living continue to sweep the country. The unrest, described as the most significant in three years, has resulted in at least 36 deaths and over 2,000 arrests, according to activists, while the Iran Human Rights (IHR) NGO reports that five minors are among the casualties.

The demonstrations, which began on December 28, were triggered by widespread economic hardship, including a sharp decline in the Iranian rial, which reached a new low of 1.46 million to the US dollar on Tuesday. Merchants staged a sit-in at Tehran’s historic market, chanting slogans demanding freedom and criticizing the regime, before being forced to disperse by security forces.

Amid the protests, exiled Crown Prince Reza Pahlavi issued his first public call to action, urging Iranians to chant in unison on January 8 and 9. “This Thursday and Friday, January 8th and 9th, starting precisely at 8 pm wherever you are, whether in the streets or even from your own homes, I call on you to begin chanting exactly at this time. Based on your response, I will announce the next calls to action,” he said.

Clashes have spread to western Iran, including Abdanan, home to Kurdish and Lor minority groups, where thousands gathered in the streets chanting “Javid Shah” (Long Live the Shah). Iranian state media reported “sporadic gatherings” around the bazaar, while security forces were also reportedly supported by Iraqi Shiite militias deployed from across the border, according to Iran International.

The government of President Masoud Pezeshkian has announced modest monthly payments and a subsidy reform to ease the economic burden, but warned against “rioters.” The central bank recently ended preferential dollar exchange rates for importers, a move expected to increase prices for essential goods. Inflation and sanctions have further compounded economic woes, prompting public anger.

Ilam province has seen particularly violent confrontations, with reports of security forces raiding hospitals and firing on demonstrators. The U.S. State Department condemned these actions as a “crime against humanity.” The Iranian judiciary warned that rioters would face no leniency.

President Donald Trump has also commented on the unrest, warning that “If Iran violently kills peaceful protesters, the US will come to their rescue.” Tehran has responded angrily to these remarks, amid heightened tensions following the capture of Venezuelan President Nicolas Maduro, an ally of Iran.

As protests continue to spread across over 280 locations in 27 of Iran’s 31 provinces, the situation highlights growing public frustration over economic hardship and the government’s inability to address a currency collapse that has eroded savings and purchasing power, signaling a potentially protracted period of instability in the country

Moneycontrol World Desk
first published: Jan 7, 2026 09:14 am

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