Iran hikes subsidies after rial collapse sparks Tehran protests

Following the recent fall of the Iranian rial, which sparked protests at Tehran’s bazaar, President Masoud Pezeshkian’s government announced a major increase in subsidies for the majority of Iranians.

Government spokeswoman Fatemeh Mohajerani said on January 4 that monthly cash subsidies will rise from 3 million rials (about $71) to 10 million rials (about $238), more than tripling previous amounts, Caliber.Az reports per Iranian media.

Rather than being distributed in cash, the funds will be credited to household accounts, allowing citizens to purchase essential goods.

The new system will take effect on January 10, 2026, and will cover all Iranian citizens.

Mohajerani highlighted that the payments are being made under President Pezeshkian’s direct order to support all Iranian people.

The government also announced that the current subsidy amount of 1 million rials per person (about $24) will be adjusted to keep pace with inflation.

Recent official data indicate that Iran’s inflation rate has surged above 40% due to the devaluation of the rial.

By Jeyhun Aghazada