Iranian President pledges anti-corruption drive after economic protests turn deadly

Masoud Pezeshkian says the country’s resources are in the hands of a select few

President Masoud Pezeshkian says his government is pursuing economic reforms despite resistance withing Iran.

Iranian President Masoud Pezeshkian on Thursday pledged to crack down on bribery and rent-seeking, while urging unity and restraint after days of protests over economic hardship that left at least three people dead.

Speaking at a ceremony in Tehran to mark the anniversary of the killing of senior Iranian commander Qassem Suleimani in a US drone attack in Baghdad, Mr Pezeshkian said his government was determined to pursue economic reforms and tackle corruption, despite resistance from powerful interests.

“We are determined to eradicate all forms of rent-seeking, smuggling and bribery,” he said, acknowledging that the effort would not be easy. “Those who benefit from these rents will resist and try to create obstacles, but we will continue on this path.”

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His remarks came as Iran faced a week of unrest, the most significant since nationwide protests in 2022. The latest demonstrations have been caused by soaring inflation, a collapsing currency and rising living costs.

Two people were killed on Thursday during clashes between police and protesters in Lordegan, western Iran, the Fars news agency reported. Rights group Hengaw said security forces opened fire on demonstrators in the area, killing and wounding several.

On Wednesday night, a member of the Basij paramilitary force was killed in riots in Kuhdasht, in Lorestan province. About a dozen members of the security forces were injured and 20 people were arrested, local officials said.

A currency exchange shop in Tehran displays values during the drop in value of the rial at the end of December. Reuters

The unrest began on Sunday when shopkeepers in Tehran closed their businesses in protest against inflation and the falling rial. Demonstrations later spread as students at about 10 universities, including in Tehran, joined in. A government building in southern Iran was attacked on Wednesday, prompting the country's top prosecutor to warn of a “decisive response” to any attempt to create instability.

Against that backdrop, Mr Pezeshkian struck a more conciliatory tone than Iranian leaders have adopted during previous waves of unrest, calling for dialogue and stressing national unity.

“We must all stand together to solve the people’s problems and defend the rights of the oppressed and the underprivileged,” he said. Protecting people’s livelihoods is a “red line” for his government, he added.

Mr Pezeshkian outlined plans to reform Iran’s subsidy system by redirecting state support from producers and importers to ordinary citizens, saying subsidies would be paid directly to individuals rather than being distributed at the start of supply chains.

“It is not just to place the country’s resources in the hands of a select few,” he said, criticising the practice of granting subsidised foreign currency to certain groups who then sell imported goods at market prices.

Iranians gather in Tehran to commemorate the death of commander Qassem Suleimani. EPA

Iran’s economy has been under severe strain for years owing to US and international sanctions linked to Tehran’s nuclear programme. The rial lost more than a third of its value against the dollar in 2025, while last month the annual inflation rate stood at more than 50 per cent, official data shows.

In a broader appeal for cohesion amid the unrest, Mr Pezeshkian warned against what he described as efforts to sow division through rumours and disinformation. “Unity, cohesion and solidarity are essential if we are to overcome these challenges,” he said.

While the latest protests are less widespread than the 2022 demonstrations, sparked by the death of Mahsa Amini in police custody, analysts say the unrest reflects deep-seated economic frustration following Iran's war with Israel last June that devastated parts of the country.

US senator Ted Cruz has linked the protests to what he described as the Iran’s military setbacks against Israel, saying the unrest reflects growing public anger at Tehran’s leadership.

In a post on X on Thursday, the Texas Republican said Iran’s confrontation with Israel exposed the weakness of regime. “Losing wars has consequences,” Mr Cruz wrote. “Israel’s 12-day campaign against the Iranian regime and President [Donald] Trump’s historic decision to destroy its nuclear programme have exposed the regime’s weakness to the Iranian people and the world. The Iranian people are rising up and the Ayatollah’s days are numbered."