Shah caller: Iran’s protests are different this time - The Economist Podcasts Recap

Podcast: The Economist Podcasts

Published: 2026-01-09

Duration: 28 minutes

Guests: Greg Carlstrom

Summary

Iran is experiencing a wave of protests with notable differences from past unrest, driven primarily by economic grievances and the fragility of the regime. Unlike previous protests, the current demonstrations lack quick fixes for the regime, exacerbating tensions.

What Happened

The episode delves into the recent protests in Iran, which began on December 28th with electronics vendors in Tehran striking due to the plummeting currency value. These protests have rapidly spread across the country, despite an internet shutdown, with demonstrators chanting 'death to the Ayatollah' and 'long live the Shah,' signaling a shift in focus from social to economic grievances.

Greg Carlstrom, a Middle East correspondent, highlights the differences between the current protests and those in 2022, which were initially about social issues like women's rights. The current protests are driven by economic concerns, particularly among jobless young men, a demographic traditionally less involved in protests.

The Iranian regime's response involves its usual repressive measures, including internet shutdowns and street intimidation. However, unlike in 2022, the regime is unable to make tactical concessions to placate the protesters, as it lacks solutions for the deep-seated economic issues plaguing the country.

Economic problems in Iran are dire, with the currency losing nearly 50% of its value and inflation soaring above 40%. US sanctions have compounded these issues, but the core problems stem from the regime's corrupt economic model, dominated by the military and clerics.

President Massr Bezaskian's recent policy to abolish a preferential exchange rate system in favor of direct cash transfers is unlikely to alleviate the situation, as the cash amount is insufficient to cover basic needs and may further fuel inflation.

The protests are also notable for some calls for the return of the monarchy, with Reza Pahlavi, son of the former Shah, encouraging demonstrations. This adds complexity to the political landscape, as some within the regime consider whether replacing the supreme leader could stabilize the situation without dismantling the regime.

The episode also touches on the potential influence of American actions and policies on Iran's internal dynamics. While Iranians are protesting independently of US actions, the regime is wary of potential American involvement, especially following recent US military actions in Venezuela.

Key Insights

• Iran's currency has lost nearly 50% of its value, and inflation has surged above 40%, exacerbating the country's economic crisis. This financial instability is a driving force behind the recent protests.
• The current protests in Iran are primarily driven by economic grievances, particularly among jobless young men, a group that traditionally did not participate in protests focused on social issues.
• Reza Pahlavi, son of the former Shah, has expressed support for the protests, adding a layer of complexity to the political landscape as some within the regime consider the possibility of replacing the supreme leader.
• Despite US sanctions contributing to Iran's economic woes, the core issues stem from the regime's corrupt economic model, which is heavily influenced by the military and clerics.