In January 2026, protests erupted in Tehran’s historic Grand Bazaar, quickly spreading to other cities across Iran. What might have seemed, at first glance, like another episode of unrest was in fact a historic signal: for the first time since the 1979 revolution, one of the regime’s most loyal institutions openly challenged the state. This was not merely an economic protest; it was a striking expression of frustration with a government that many Iranians feel has long prioritised regional ambitions over domestic welfare, and coercion over reform.

The Grand Bazaar has traditionally been a pillar of Iranian economic and political life. Its merchants have long supported the state, providing stability and reinforcing the Islamic Republic’s authority. That this community became a catalyst for nationwide protests reveals a deepening crisis of legitimacy within the government. Unlike previous waves of dissent, driven primarily by students or urban professionals, the 2026 protests united diverse social groups—from merchants and young people to public sector employees—signalling a broad-based challenge to state authority.

Underlying this unrest are enduring domestic pressures. Iran’s economy has struggled under decades of mismanagement, compounded by international sanctions and structural inefficiencies. Inflation and unemployment remain persistently high, while many Iranians, particularly younger generations, see little hope of socio-economic mobility. These economic pressures are amplified by widespread perceptions of corruption, elite privilege, and governance failures, leaving many citizens feeling both excluded from political life and powerless to influence it.

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