Iran announces cash payments amid deadly economic protests

Monday 05 January 2026 - 08:50

By: Dakir Madiha

Iran announces cash payments amid deadly economic protests

Iran's government revealed plans on Sunday to distribute monthly cash payments of roughly $7 per person for four months, as protests against the nation's deepening economic crisis entered their second week. Demonstrations have spread across dozens of cities, with at least 16 deaths reported in clashes between protesters and security forces. The measure aims to ease financial strain on citizens amid spiraling inflation and currency collapse.

Government spokesperson Fatemeh Mohajerani explained that each payment, equivalent to 1 million tomans, will come as store credit for essential goods. State television reported the initiative, initially announced on January 4 and 5, with officials later boosting it to 10 million rials monthly starting January 10. In a country of over 85 million where minimum wages hover around $100 and average salaries near $200, these steps seek to counter the rial's plunge to a record 1.4 million per U.S. dollar—a more than one-third drop over the past year.

Protests erupted on December 28 following the currency's sharp devaluation, fueling annual inflation of 52 percent in December. What began as merchant strikes in Tehran's Grand Bazaar has ballooned into widespread anti-government unrest across at least 60 cities in 25 provinces, according to the Human Rights Activists News Agency. Crowds have chanted "Death to Khamenei" and "Down with the dictator," drawing a fierce response.

Violence has escalated, with 16 fatalities including one security officer and over 582 arrests nationwide. Deadliest clashes occurred in western cities like Malekshahi, where forces opened fire on demonstrators. Supreme Leader Ayatollah Ali Khamenei broke his silence on Saturday, urging authorities to subdue "rioters" while distinguishing them from peaceful protesters. U.S. President Donald Trump warned on Friday via Truth Social that America stands ready to aid if Iran violently suppresses demonstrators, noting U.S. forces are "armed and ready to intervene."

The crisis stems from years of U.S. and international sanctions over Iran's nuclear program, intensified by UN penalties reinstated in September 2025 through a "snapback" mechanism invoked by Britain, France, and Germany over Tehran's ongoing nuclear advances.