American military bases throughout the region have been placed in Iran’s crosshairs following President Trump’s warning about intervention over protests driven by a steep drop in currency value and rising prices. Iran’s parliament speaker delivered the threat Friday as economic crisis deepens.
Seven fatalities have been reported since demonstrations began Sunday, sparked by the steep drop in the rial and rising prices for basic goods. The protests started in Tehran where shopkeepers gathered to criticize the government’s handling of both the steep drop in currency value and rising prices that have devastated their businesses.
Trump’s statement that America would intervene if Iranian forces use lethal measures against peaceful protesters has drawn immediate resistance from Tehran’s power structure. An adviser to Supreme Leader Ali Khamenei warned that US interference would trigger widespread chaos across the region.
The combination of steep drop in currency and rising prices has created a perfect storm. Official figures show inflation reached 42.5 percent in December, while the rial’s steep drop has seen it weaken to approximately 1.4 million per US dollar. The steep drop and rising prices together with weak economic growth have devastated citizens’ purchasing power.
President Pezeshkian’s administration has sought to demonstrate openness to concerns about the steep drop and rising prices. Speaking on state television, Pezeshkian invoked religious teachings to frame addressing livelihood issues as a moral imperative. However, he has admitted his options are limited as the rial has sharply weakened. The prosecutor general has attempted to validate peaceful protests about economic conditions while threatening decisive responses to security threats.