This grab taken on January 2, 2026, from UGC images posted on social media shows protestors attacking a building in Fasa, in southern Iran on December 31. Photo: VCG

Iran's Supreme Leader Ali Khamenei said on Saturday that exploiting the Iranian merchants' protests to incite riots and undermine national security is "absolutely unacceptable," the Xinhua News Agency reported.

He made the remarks during a meeting in Tehran with the families of those killed in the June 12-day war with Israel, commenting on recent protests by bazaar merchants over economic difficulties, particularly the sharp depreciation of Iran's national currency, Xinhua reported, citing the official news agency IRNA.

Khamenei said it was "not acceptable at all" for some individuals, "under various labels and names," to exploit the protests of the "faithful and honest" merchants to create unrest and insecurity. He criticized the exploitation of these protests by "provoked or paid agents of the enemy" who chanted slogans against Iran and the Islamic Revolution.

As protests swept across parts of Iran over the soaring cost of living, the US president and top Iranian officials exchanged dueling threats on Friday, according to AP. 

In a post on Truth Social on Friday local time, US President Donald Trump claimed if Iran "kills peaceful protesters, which is their custom, the United States of America will come to their rescue. "

In response, Iranian officials issued warnings against US intervention in the country's internal affairs. Foreign Minister Abbas Araghchi warned on his X account that the country's armed forces "are on standby and know exactly where to aim in the event of any infringement of Iranian sovereignty."

The foreign ministry, as reported by Iran's IRNA news agency, said in a statement that the Islamic Republic of Iran's response to any aggression will be swift, decisive, and comprehensive.

Top Iranian official Ali Larijani also warned on his X account that "US interference in this internal matter would mean destabilizing the entire region and destroying America's interests."

The unrest comes at a critical moment for Iran as Western sanctions hammer an economy hit by 40 percent inflation, and after air strikes by Israel and the US in June targeted the country's nuclear infrastructure and military leadership, according to Al Jazeera.

The Iranian rial has weakened sharply since the US withdrew from Iran's 2015 nuclear deal in 2018 and reimposed sanctions. The US dollar currently trades at a rate of over 1.35 million rials on the open market, according to the Xinhua News Agency.

Global Times