Iran's Plans for Arms Sales
Iran plans to implement a mechanism for arms sales through digital assets and cryptocurrencies in order to bypass Western sanctions. This step involves the offer of ballistic missiles, drones, and military vessels, which could significantly change the situation in the international arms market. The state structure Mindex, responsible for exporting Iran's defense products, announced cooperation with 35 countries, indicating an expansion of Tehran's military ties on the global stage.
Social Protests in Iran
At the same time, large-scale anti-government protests have been ongoing inside the country since late 2025. These protests are the result of a severe economic situation, specifically the fall of the Iranian rial, which has lost nearly half of its value against the dollar. Inflation reached 42.5% in December 2025, further exacerbating social discontent. On December 30, 2025, university students joined the protests, indicating increased youth activism on economic justice issues.
As of January 1, 2026, reports indicated at least seven deaths in four different cities in Iran, highlighting the seriousness of the situation. These protests have become the largest since the unrest of 2022. President of Iran Masoud Pezeshkian stated that the government is ready to listen to the legitimate demands of the protesters, but Attorney General Mohammad Movahedi-Azad warned of a decisive response to any destabilization. Therefore, the country is witnessing two significant processes:
- Expansion of military capabilities through new mechanisms for arms sales.
- Increase in social tensions that could lead to further protests.
The implementation of new arms sales mechanisms by Iran could substantially impact the global balance of power, especially in the context of international sanctions. This also underscores the country's attempts to adapt to new economic realities and find alternative ways to sustain its military might. Meanwhile, social tensions within the country indicate deep economic problems that may lead to further escalation of protests, threatening the regime's stability. Thus, Iran finds itself at a crossroads between military expansion and internal challenges, requiring careful management of the situation by the government.