United States sanctions Iranian officials over deadly protest crackdown

Friday 16 January 2026 - 15:20

By: Dakir Madiha

United States sanctions Iranian officials over deadly protest crackdown

Iran faces its most severe crisis since the 1979 Islamic Revolution, sparked three weeks ago when Tehran bazaar merchants shuttered shops in protest against the currency's collapse. What began as economic demonstrations on December 28, 2025, has evolved into a nationwide uprising demanding regime change, met with violence that rights groups say has claimed thousands of lives.

The rial's plunge to historic lows around 1.4 to 1.5 million per U.S. dollar on the black market ignited the unrest, making it impossible for traders to price imported goods amid massive losses. Food inflation has soared, with Iran's Statistical Center reporting a 58% year-on-year rise through September 2025; fruit prices jumped 75%, while bread and cereals nearly doubled. Analysts point to the October 2025 collapse of Ayandeh Bank, one of Iran's largest private lenders, as a key trigger. Its failure exposed deep flaws in the financial system, including nearly $5 billion in bad loans tied to politically connected ventures like Iran Mall, the Middle East's biggest shopping center.

Government efforts to merge Ayandeh with state-owned Bank Melli required printing vast sums of currency to cover debts, effectively shifting the elite's mismanagement costs onto ordinary citizens.

Protests spread rapidly from Tehran's bazaars to universities and working-class neighborhoods across all 31 provinces and over 186 cities. Demonstrators chanted "Death to the dictator" and called for an end to clerical rule. On January 8, authorities imposed a near-total internet blackout as security forces ramped up their crackdown.

Death toll estimates vary widely. U.S.-based Human Rights Activists News Agency (HRANA) reports 2,615 fatalities and over 18,000 arrests by mid-January. Iran International and internal activist groups suggest far higher figures, potentially exceeding 12,000 deaths. Iran's ambassador to France claims around 600 victims.

The United States imposed sanctions Thursday on five Iranian officials accused of orchestrating the "brutal repression of peaceful protesters." Treasury Secretary Scott Bessent accused them of transferring "tens of millions of dollars" out of the country, branding them "rats fleeing the ship." President Donald Trump threatened military intervention earlier this week before backing off, citing intelligence that killings had stopped a claim unconfirmed by U.S. intelligence. The White House insists all options remain on the table.

Underlying economic pressures persist unresolved. International sanctions severely restrict Iran's access to oil revenues and foreign currency, while the government's $10 billion austerity measures have slashed bread subsidies and preferential exchange rates. As one Tehran resident told Al Jazeera, "The regime has no quick fix for the disastrous circumstances it faces this time."