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Iran’s Traders, Frustrated by Economic Losses, Turn Against Clerics
People walk past closed shops following protests over a plunge in the currency’s value, in the Tehran Grand Bazaar, Tehran, Iran, Dec. 30, 2025. Photo: Majid Asgaripour/WANA (West Asia News Agency) via REUTERS
Iran’s bazaar merchants, the trader class who were the financial backbone of the 1979 Islamic Revolution, have turned against the clerics they helped bring to power, fulling unrest over an economy that has morphed into full-blown anti-government protests.
Frustration among bazaar merchants, from small-scale shopkeepers to large wholesale traders, has grown as their political and economic clout in Iran has diminished over the decades while the elite Revolutionary Guards have tightened their grip on the economy, building sprawling and tightly held networks of power.
“We are struggling. We cannot import goods because of US sanctions and because only the Guards or those linked to them control the economy. They only think about their own benefits,” said a trader at Tehran’s centuries-old Grand Bazaar, speaking on condition of anonymity.
The wave of protests that has engulfed the country, posing one of the toughest challenges ever to the clerical leadership, erupted in late December in Tehran’s Grand Bazaar, where hundreds of shopkeepers denounced the sharp fall in the rial currency.
The demonstrations quickly swelled and turned political, challenging the Islamic Republic’s legitimacy. Protesters burned images of Supreme Leader Ayatollah Ali Khamenei and chanted “Death to the dictator” – undeterred by security forces armed with tear gas, batons, and, in many cases, live ammunition.
Iran’s rulers, while acknowledging economic difficulties, have blamed their longtime foes the US and Israel for fomenting the unrest. They appear intent on holding onto power at any cost, backed by a security apparatus refined over decades of suppressing ethnic revolts, student movements, and protests over economic hardship and social freedoms.
A combination of international sanctions and the Guards’ sprawling economic empire has limited the government’s ability to ease the dire economic situation.
Tehran-based analyst Saeed Laylaz said the government has lost control over the situation.
“What is striking is that the unrest began in the bazaar. For merchants, the core issue isn’t inflation – it’s price volatility, which leaves them unable to decide whether to buy or sell,” he said.
Economic disparities between ordinary Iranians and the clerical and security elite, along with economic mismanagement and state corruption – reported even by state media – have fanned discontent at a time when inflation is pushing the price of many goods beyond the means of most people.
Iran’s rial currency has lost nearly half its value against the dollar in 2025, with official inflation reaching 42.5% in December.
CONTROL OF SECTORS FROM OIL TO CONSTRUCTION
Created by the Islamic Republic’s late founder Ayatollah Ruhollah Khomeini, the Guards first secured an economic foothold after the Iran-Iraq war in the 1980s, when clerical rulers allowed them to invest in leading Iranian industries.
Their influence expanded exponentially over decades, benefiting from Khamenei’s full backing and from opportunities created by Western sanctions, which effectively excluded Iran from the global financial and trading system.
The Guards now control vast sectors of the economy, from oil to transportation, communications, and construction.
Another trader said the crisis was not over, as the Guards have long proved adept at defending their economic interests.
“The government wants to resolve the problem, but it lacks the means and power in this system. The economy is not controlled by the government,” said the trader, a 62-year-old carpet seller in Tehran.
All aspects of the country’s sanctions-hit oil business have come under the growing influence of the Guards – from the shadow fleet of tankers that secretly ship sanctioned crude, to logistics and front companies selling the oil, mostly to China.
“No one knows how much of the oil money that the Guards get from selling Iran’s oil returns to the country … they are too powerful to be questioned about it,” said a senior Iranian official, who asked not to be named.
During his 2013–2021 presidency, pragmatist Hassan Rouhani repeatedly clashed with the Guards, accusing them publicly of resisting budget cuts, while his attempts to curb their commercial networks and assets were largely frustrated.
THE ESTABLISHMENT RELIES ON THE GUARDS TO END UNREST
Even as it has relinquished economic power, the clerical establishment has relied on its loyal forces – the Guards and its affiliated Basij paramilitary – to violently crush ethnic uprisings, student unrest, and protests over economic hardship, preserving the political order.
“Given the sensitive circumstances when the country faces foreign threats, Khamenei cannot upset the Guards by curbing their economic influence. The establishment needs them to quell the protests and confront foreign threats,” said an insider, close to Rouhani.
US-based rights group HRANA said it had verified the deaths of 544 people – 496 protesters and 48 security personnel – with 10,681 people arrested since the protests began on Dec. 28 and spread around the country. Reuters was unable to independently verify the tallies.
The authorities have not given numbers of casualties, but officials claim many members of the security forces have been killed by “terrorists and rioters” linked to foreign foes, including the US and Israel.
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Amid antisemitic attacks, Trump has forced an impossible choice on American synagogues
The Thursday attack on Temple Israel in West Bloomfield, Michigan, did not occur in a vacuum.
In the past few months, shots were fired at three congregations in Toronto; an explosion rocked a synagogue in Belgium; and an arsonist caused massive damage to Beth Israel Congregation in Mississippi. Antisemitic incidents in the United States have reached historic highs. The threat is real, it is escalating, and American Jews know it.
Which is why the federal government’s decision to use this moment in history to force Jewish communities to choose between their own safety and that of immigrants is so unforgivable.
That choice is being created as part of the government’s Nonprofit Security Grant Program, which under President Donald Trump has instituted troubling new changes.
The program was established in 2004 to help houses of worship pay for cameras, barriers, armed guards and alarm systems, then expanded after the Pittsburgh synagogue massacre in 2018. It has perhaps never mattered more than it does right now. It provides, quite literally, life-saving money. The demand for grants vastly outpaces the supply, with thousands of organizations competing for a fraction of the security funds they need.
Now, those funds come with new strings attached.
Beginning in 2025, the Department of Homeland Security attached sweeping ideological conditions to new security grants. Recipients of new awards must cooperate with Immigration and Customs Enforcement operations, and must also agree not to “operate any programs that advance or promote DEI, DEIA, or discriminatory equity ideology.” They additionally must not run any aid program which “benefits illegal immigrants or incentivizes illegal immigration.”
When asked to clarify what those conditions mean in practice — whether a synagogue that declares itself a sanctuary for refugees would be disqualified, or whether a congregation offering programming for Jews of color or LGBTQ+ Jews would run afoul of the anti-DEI clause — the federal government’s answer has been months of contradictory guidance and confusion.
The terrifying potential consequences of that muddle were thrown into sharp relief by Thursday’s attack.
A man armed with a rifle rammed his truck through the doors of Temple Israel, driving down a hallway before being killed by the synagogue’s security staff. Thankfully, no congregants were hurt, and the children in the preschool run by the synagogue all made it home safely.
Many congregations do not have the independent resources to support security protocols as effective as Temple Israel’s proved to be. Instead, they rely on the government to help bridge the gap.
But under Trump’s second administration, security funding — the money that pays for the tools that may one day save lives — is now a lever to use to force political compliance.
This is of particular significance for Reform Judaism, the largest Jewish denomination in the U.S. and that to which Temple Israel belongs. The movement’s commitment to welcoming the stranger, hachnasat orchim — stemming from the commandment to love the stranger, repeated no fewer than 36 times in the Torah — is core to its identity. It is no coincidence that many Reform congregations have declared themselves sanctuaries for refugees.
And it’s of particular significance because antisemitic violence is often linked to anti-immigrant sentiment. The deadliest act of antisemitic violence in U.S. history, the 2018 Pittsburgh synagogue shooting, was motivated by hatred toward immigrants, and toward Jewish programs that aid them.
The Trump administration’s demand that liberal American Jews choose between a foundational Jewish value and basic safety from violence is heartbreaking. One anonymous rabbi described the dilemma with devastating clarity to JTA: “Money is being given to us on condition that we violate a specific mitzvah. I don’t see how we can possibly accept that money.”
Rabbi Jill Maderer in Philadelphia put it even more bluntly, saying “Jewish safety requires inclusive democracy and inclusive democracy requires Jewish safety. We do not comply so we will not apply.”
These are communities under armed threat — as Thursday clearly reminded us — forced to choose between their physical safety and their moral integrity. That is a choice that no American religious community should ever have to make. The government’s obligation to protect its citizens, especially its most targeted minorities, must not come with an ideological price tag.
What makes this especially galling is the timing. A government shutdown of the Department of Homeland Security, born out of a political standoff over immigration enforcement, is currently halting the review of security grant applications. Synagogues that applied for funding months ago are waiting for approvals that may not come.
They are waiting, in many cases, to find out whether the security upgrades that might have made the difference under circumstances like those that unfolded in Michigan will be funded or not.
There is a word for demanding that a persecuted minority community abandon its values in exchange for protection: extortion. The Trump administration would no doubt dispute that framing. After all, the administration claims to care deeply about Jewish safety. Thursday’s attack makes clear that it is not enough for the administration to make that claim; it must prove its commitment through action.
It must remove the political conditions from the Nonprofit Security Grant Program. It must let houses of worship be what they are: sanctuaries, not instruments of federal policy.
The post Amid antisemitic attacks, Trump has forced an impossible choice on American synagogues appeared first on The Forward.
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‘For As Long As Necessary’: Katz Says Campaign Against Iran Entering Decisive Stage
Israel’s Defense Minister Israel Katz and his Greek counterpart Nikos Dendias make statements to the press, at the Ministry of Defense in Athens Greece, Jan. 20, 2026. Photo: REUTERS/Louisa Gouliamaki
i24 News – Israel Katz said Saturday that the confrontation with Iran had entered a “decisive phase,” as US and Israeli strikes on Iranian targets continued and regional tensions escalated.
Speaking after a security assessment at Israel’s defense headquarters alongside Eyal Zamir, chief of staff of the Israel Defense Forces, and senior military and intelligence officials, the Israeli defense minister said the campaign against the Islamic Republic would continue “for as long as necessary.”
“The global and regional struggle against Iran, led by American President Donald Trump and Israeli Prime Minister Benjamin Netanyahu, is intensifying and entering its decisive phase,” Katz said.
Katz also praised US strikes on Kharg Island, a key Iranian oil hub, describing them as a “severe blow” to the Iranian regime. He said the attacks were an appropriate response to Iranian threats against the strategic Strait of Hormuz and to what he called Tehran’s attempts to pressure the international community.
At the same time, Katz said the Israeli Air Force was continuing a “powerful wave of attacks” against targets in Tehran and other parts of Iran.
He accused the Iranian leadership of using “regional and global terrorism” and strategic blackmail in an effort to deter Israel and the United States from pursuing their military campaign, warning that such actions would be met with a “strong and uncompromising response.”
Katz added that the outcome of the conflict would ultimately depend on the Iranian population. “Only the Iranian people can put an end to this situation through a determined struggle, until the overthrow of the terrorist regime and the salvation of Iran,” he said.
According to the minister, the confrontation now pits the Iranian regime’s determination to survive against growing military pressure from Israel and its allies.
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Trump Rejects Efforts to Launch Iran Ceasefire Talks, Sources Say
US President Donald Trump speaks on the day he honors reigning Major League Soccer (MLS) champion Inter Miami CF players and team officials with an event in the East Room of the White House in Washington, DC, US, March 5, 2026. Photo: REUTERS/Jonathan Ernst
President Donald Trump’s administration has rebuffed efforts by Middle Eastern allies to start diplomatic negotiations aimed at ending the Iran war that started two weeks ago with a massive US-Israeli air assault, according to three sources familiar with the efforts.
Iran, for its part, has rejected the possibility of any ceasefire until US and Israeli strikes end, two senior Iranian sources told Reuters, adding that several countries had been trying to mediate an end to the conflict.
The lack of interest from Washington and Tehran suggests both sides are digging in for an extended conflict, even as the widening war inflicts civilian casualties and Iran’s closure of the Strait of Hormuz sends oil prices soaring.
US strikes on Iran’s Kharg Island, the country’s main oil export hub, on Friday night underscored Trump’s determination to press ahead with his military assault. Iran’s new Supreme Leader Mojtaba Khamenei has vowed to keep the Strait of Hormuz shut and threatened to step up attacks on neighboring countries.
The war has killed more than 2,000 people, mostly in Iran, and created the biggest-ever oil supply disruption as maritime traffic has halted in the Strait of Hormuz, through which a fifth of the world’s oil is transported.
ATTEMPTS TO OPEN LINES OF COMMUNICATION
Oman, which mediated talks before the war, has tried multiple times to open a line of communication, but the White House has made clear it is not interested, according to two sources, who like others in this story were granted anonymity in order to speak freely about diplomatic matters.
A senior White House official confirmed Trump has rebuffed those efforts to start talks and is focused on pressing ahead with the war to further weaken Tehran’s military capabilities.
“He’s not interested in that right now, and we’re going to continue with the mission unabated. Maybe there’s a day, but not right now,” the official said.
During the first week of the war, Trump wrote on his Truth Social platform that Iran’s leadership and military were so battered by US-Israeli strikes that they wanted to talk, but that it was “Too Late!” He has a history of shifting foreign policy stances without warning, making it hard to rule out that he might test the waters for restarting diplomacy.
“President Trump said new potential leadership in Iran has indicated they want to talk and eventually will talk. For now, Operation Epic Fury continues unabated,” a second senior White House official said when asked to comment on this story.
The Iranian sources said Tehran has rejected efforts by several countries to negotiate a ceasefire until the US and Israel end their airstrikes and meet Iran’s demands, which include a permanent end to US and Israeli attacks and compensation as part of a ceasefire.
Egypt, which was involved in mediation before the war, has also tried to reopen communications, according to three security and diplomatic sources. While the efforts do not appear to have made progress, they have secured some military restraint from neighboring countries hit by Iran, according to one of the sources.
Egypt’s foreign ministry, the government of Oman and the Iranian government did not respond to requests for comment.
POSITIONS HARDEN ON ALL SIDES
The war’s impact on global oil markets has significantly increased the cost for the United States.
Some US officials and advisers to Trump urge a quick end to the war, warning that surging gasoline prices could exact a high political price from the president’s Republican Party, with US midterm elections looming.
Others are pressing Trump to maintain the offensive against the Islamic Republic to destroy its missile program and prevent it from obtaining a nuclear weapon, according to Reuters reporting.
Trump’s rejection of diplomatic efforts could indicate that, for now, the administration has no plans for a quick end to the war.
Indeed, both the United States and Iran appear even less willing to engage than during the opening days of the war, when senior US officials reached out to Oman to discuss de-escalating, according to several sources.
One source said Iran’s top security official, Ali Larijani, and Foreign Minister Abbas Araghchi had also sought to use Oman as a conduit for ceasefire discussions that would have involved U.S. Vice President JD Vance.
But those discussions have not materialized.
Instead, Iran’s position has hardened, said a third senior Iranian source.
“Whatever was communicated previously through the diplomatic channels is irrelevant now,” said the source.
“The Guards strongly believe that if they lose control over the Strait of Hormuz, Iran will lose the war,” the source added, referring to the Islamic Revolutionary Guard Corps, an elite paramilitary force that controls large parts of the economy.
“Therefore, the Guards will not accept any ceasefire, ceasefire talks, or diplomatic efforts, and Iran’s political leaders will not engage in such talks despite attempts by several countries.”
