Showdown in a State in Crisis - Trump’s Threat, Iran’s Warnings, and a People in Revolt

byRainer Hofmann

January 3, 2026

The Islamic Republic of Iran stands on the brink of its next major escalation. For days, protests have spread across the country, born of economic desperation and turning into an open rebellion against the regime. The trigger was the collapse of the national currency - more than 1.45 million rials to one US dollar - accompanied by inflation well beyond the 40 to 50 percent range. Initial resistance emerged in Tehran’s Grand Bazaar. By now, students, workers, and families from all parts of the country have joined in. In cities such as Isfahan, Kermanshah, and Hamedan, as well as in rural areas, demonstrators are chanting “Death to the dictator.”

The regime responds as it always does: with tear gas, rubber bullets, live ammunition, and mass arrests. At least eight people have been killed so far. Among them are Mostafa, 15, Amirhossein Khodayari, 22, Sajjad Valamanesh, 28, Shayan Asadollahi, 28, Ahmad Jalil, 21, Khodadad Shirvani, 37, Vahab Ghaedi, and Dariush Ansari, 37. At Khodayari’s funeral, mourners were dispersed by security forces who had blended in among the attendees. His father publicly contradicted the government’s claim that his son had been a member of the Basij. Even state controlled media later walked back the assertion.

At the international level, tensions are also intensifying. On Friday, US President Trump wrote on Truth Social: “If the regime kills peaceful demonstrators, we will come to their aid. We are loaded and ready.” The response from Tehran was swift. National Security Council Secretary Ali Larijani accused the United States and Israel of inciting the protests. Foreign Minister Araghchi declared: “Our people will repel any interference with all their strength. Our armed forces know exactly where they need to aim.” Ayatollah adviser Ali Shamkhani warned: “Any foreign hand that reaches too close to Iran’s security will be severed.”

The confrontation is not new. In June, Israel launched a twelve day war against Iranian targets, after which the United States bombed three Iranian nuclear facilities. Iran responded with a missile strike on the US Al Udeid base in Qatar. There were no casualties, but the message was clear. Now the next chapter threatens to unfold. Ghalibaf, the parliamentary speaker in Tehran, stated openly: “All American bases and troops are legitimate targets.” Israeli Prime Minister Netanyahu has also commented repeatedly on the situation in recent days, warning Iran against any resumption of its nuclear program. Tehran then announced that it would no longer enrich uranium, apparently hoping to open the door to new talks. The US government has so far shown no willingness to reciprocate.

Reformist President Pezeshkian is trying internally to signal a willingness to engage in dialogue, but his power is limited. He has acknowledged that he can do little to counter the collapse of the currency and the economic hardship. The population no longer believes him. Unlike Obama in 2009, who held back during the Green Movement, Trump is now openly siding with the protesters, provoking not only the government in Tehran but also the risk of another military clash. Analysts warn that the regime could use Trump’s stance as justification to crack down even more brutally on its own people.

The situation is explosive. These are no longer just calls for bread and money. They are demands for freedom and accountability. And while the tone in Washington grows sharper, people are standing in the streets of Zahedan, Kouhdasht, and Tehran with nothing left to lose.

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