Iran’s Domestic Crisis: Diverging Government, Exile, and U.S. Responses Amid 2026 Protests

Masoud Pezeshkian juxtaposed with 2026 Iranian economic protests and shopkeeper strikes.

Iran’s Domestic Debate: Leadership Statements Amid 2026 Protests

The opening week of 2026 has seen continuing demonstrations in several Iranian cities, primarily driven by economic hardship, including sharply rising prices and a steep decline in the national currency.

During a meeting of the Provincial Planning Council in Chaharmahal and Bakhtiari Province.
Iranian President Masoud Pezeshkian addressed the protests. He noted that “the responsibility lies with us,” marking a rare instance of a senior official attributing the country’s current difficulties to domestic governance rather than foreign actors.

Pezeshkian emphasized that many challenges, such as resource management and currency stabilization, require internal measures. During this session, he also announced the termination of the subsidized exchange rate of 28,500 tomans per U.S. dollar, citing mismanagement and corruption that prevented benefits from reaching citizens.


Larijani Responds: Regional and Security Considerations

Ali Larijani, the Supreme Leader’s representative to the National Security Council, issued a statement on January 3, 2026, warning that foreign intervention could provoke regional instability. He framed the protests in the context of alleged external involvement, mentioning both Israel and the United States. Larijani’s statement included a caution regarding the safety of U.S. personnel in the region, highlighting potential risks if external actors intervene.

While Pezeshkian’s comments focused on internal solutions, Larijani’s remarks emphasized security and the potential consequences of foreign involvement.


U.S. Statement: Conditional Intervention Warning

On January 2, 2026, U.S. President Donald Trump posted on Truth Social, warning that the United States would act to protect demonstrators if lethal force were used. The post, which included the phrase “locked and loaded,” was interpreted by analysts as a signal of heightened readiness for potential intervention. The warning specifically referenced protecting peaceful protesters and responded to reports of at least seven fatalities during ongoing demonstrations.


Exiled Leadership: Reza Pahlavi’s Messaging

Reza Pahlavi, the exiled former Crown Prince, released statements on January 2, 2026, addressing protesters and the international audience. He described the movement as a moment of national significance, urging citizens to remain united and focused. Pahlavi also communicated through secure channels to Iranian military and police personnel, encouraging defections and offering a 100-day stabilization plan in the event of a governmental transition.


Summary of Responses

The current situation features four distinct sets of messaging:

Representative Key Statement Focus
Pezeshkian (President) Internal accountability; policy changes on subsidies. Domestic solutions, governance
Larijani (NSC Representative) Warnings on foreign involvement; security risks. Regional stability, deterrence
Trump (U.S. President) U.S. readiness to protect protesters ("Locked and Loaded"). International intervention
Pahlavi (Exiled Leader) Calls for unity and a structured post-transition plan. Protest coordination, transition

Observations on Timing and Public Response

The statements illustrate different priorities within and outside Iran. Pezeshkian’s policy adjustments are intended to address immediate economic concerns. Larijani emphasizes deterrence against foreign action. Trump’s communication signals potential external engagement contingent on developments on the ground. Pahlavi’s outreach focuses on protest coordination and planning for post-crisis stabilization.

This interplay highlights the complexity of messaging during ongoing domestic unrest, with multiple internal and external actors influencing perceptions and decisions.

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