Iran’s Supreme Leader Ayatollah Ali Khamenei, in his first public remarks since the start of nationwide protests, attempted to distinguish between what he called the bazaar’s “legitimate” grievances and the broader anti-state uprising. He praised the country’s merchants as among the Islamic Republic’s most loyal supporters and insisted that foreign enemies could not use the bazaar to challenge the state. However, demonstrations have continued in Tehran’s markets, where authorities used tear gas to disperse crowds chanting anti-government slogans, including calls for Khamenei’s removal.

The unrest reflects a deeper erosion of the bazaar’s traditional alliance with Iran’s ruling establishment. Once a pillar of the 1979 revolution, the merchant class has seen its influence decline over two decades of economic favoritism toward the Islamic Revolutionary Guard Corps (IRGC) and religious foundations, compounded by sanctions and inflation. The IRGC’s growing dominance in trade, banking, and infrastructure has marginalized traditional business networks that once anchored the regime’s stability.

Analysts note that while the state could theoretically ease sanctions and curb IRGC-linked conglomerates to regain bazaar support, escalating tensions with the West and entrenched power structures make such reforms increasingly unlikely.