A dramatic convergence of internal rebellion and external confrontation has thrown Iran into a new state of crisis. As the nation's president declared a "full-scale war" with the West, the capital, Tehran, descended into internal turmoil, with businesses shuttering and protesters flooding the streets in defiance of the regime.
A Capital in Revolt Against "The Year of Blood"
In a nationally televised address, President Masoud Pezeshkian, speaking with the apparent endorsement of Supreme Leader Ayatollah Ali Khamenei, escalated geopolitical tensions, stating, "We are in a full-scale war with the US, Israel and Europe." However, this declaration of external conflict was immediately overshadowed by a severe internal breakdown.
Within hours, Tehran's commercial heart—its bazaars and business districts—closed unexpectedly. Workers and merchants took to the streets, not in support of the war cry, but in furious protest against the regime's soaring oppression, rampant corruption, and a collapsing economy that has crushed living standards. Chants of "This year is the year of blood, Seyyed Ali (Khamenei) will be overthrown," and "Death to the dictator!" echoed through the city, directly challenging the theocratic leadership.
The protests, which began on Sunday, continued and expanded into a second day on Monday, defying a state of emergency imposed by the rattled Islamic Revolutionary Guard Corps (IRGC).
A Regime's Legitimacy in Freefall: Corruption, Inflation, and Executions
The unrest exposes a regime grappling with a catastrophic loss of public trust. Shockingly, even state-aligned media and former officials are sounding alarms. The *Khabar Online* website cited regime economists admitting that "the legitimacy of the Islamic Republic system has reached its historical low" and that corruption has infiltrated every level of the state.
Hossein Marashi, a former vice president, laid bare the economic disaster: "The 37 percent inflation rate... has now reached over 53 percent and will certainly exceed 55 percent by the end of the year." He warned ominously that "the food supply crisis has the potential to bring hungry people to the streets."
Simultaneously, the regime has intensified a campaign of violent repression. According to the Human Rights Activists News Agency (HRANA), executions have surged to a 20-year high, with 1,922 people killed in 2025 alone—more than double last year's figure—in a brutal attempt to terrorize the populace into submission.
A Resistance Movement Sees an Opening
For opposition groups, this latest wave of merchant-led protests represents a critical moment. Maryam Rajavi, head of the exiled National Council of Resistance of Iran (NCRI), asserted that the protests target "the root of the problem—the vile system of religious dictatorship." She has called on the public and youth to rally in support, seeing the combination of economic desperation and political fury as a potent threat to the regime's stability.
The crisis presents the Iranian leadership with a dual threat: an escalating confrontation with Western powers abroad and a boiling, widespread revolt at home, signaling one of the most severe tests for the Islamic Republic in recent years.
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