Following the 2025 Twelve-Day War, a domestic crisis began in Iran. The period is characterized by domestic unrest, political instability, protests (including their supression) and economic decline within the country, to which the government of Iran responded with government crackdowns, mass executions, arrests and militarization in an effort to maintain control.
As a result of the Twelve-Day War, internal tension within the Islamic Republic worsened into what the National Council of Resistance of Iran calls a "crisis of legitimacy". Various reports highlighted the government's weaknesses in security and management ability, and has chosen to engage in internal disputes rather than promote unity or initiate reforms to avoid accountability. Amnesty International's Karg observes that, in response to growing international isolation, the government is tightening domestic control through intensified repression and likely a rise in executions. In addition, the war's aftermath has pushed Iran's already struggling economy into an even more unstable and vulnerable state.
In late 2025, mass protests erupted across Iran, driven by public anger over the deepening economic crisis. Initially led by bazaar merchants and shopkeepers in Tehran, the demonstrations quickly expanded beyond economic demands to include chants of anti-government slogans such as "Death to the Dictator".
Background
On 13 June 2025, the Twelve-Day War broke out when Israeli forces launched attacks targeting Iranian military, nuclear and government sites, along with assassinations of IRGC leadership. Iran retaliated with extensive missile and drone barrages against Israeli and allied targets, including a strike on a US base in Qatar. The war ended with a US and Qatar-brokered ceasefire on 24 June.
Economic instability
In the aftermath of the Twelve-Day War, Iran's internal economy has entered a phase of heightened instability and fragility. The conflict delivered a sudden shock to a system already weakened by years of sanctions, mismanagement, and infrastructural decay. The displacement of nearly seven million people from urban centers during the war disrupted commerce, transportation, and local economies. Though many residents have returned, the economic rhythm has not fully recovered, and business continuity remains strained in key sectors.
Post-war, Iran faces the dual challenge of physical and institutional recovery. Power shortages, already critical before the conflict, have worsened significantly. Industrial zones now experience unscheduled and prolonged blackouts of up to five hours daily, severely undermining manufacturing output and supply chains. Compounded by logistical breakdowns and reduced fuel availability, basic services are under pressure, and small businesses face renewed uncertainty. If the Israeli strikes damaged refining capacity or disrupted distribution channels for industrial inputs, the recovery trajectory will be even more arduous.
The post-war economic outlook is further complicated by Iran's political response to the strikes. The government's move to suspend cooperation with the International Atomic Energy Agency signals a confrontational stance that risks triggering new European sanctions under the nuclear agreement's enforcement mechanisms. This has alarmed many inside Iran who fear deepening isolation and economic suffocation. Sanctions could tighten access to foreign currency, limit imports of essential goods, and further erode public purchasing power, outcomes that would disproportionately affect ordinary Iranians already burdened by inflation and unemployment.
Domestic dissent During Twelve-Day War Following the initial strikes on 13 June, Iranian opposition leader Reza Pahlavi told Iranians that the time has come to "overthrow the Islamic Republic through street protests and nationwide strikes". Speaking of the government of Iran, he claimed that "it could fall. As I have told my compatriots: Iran is yours and yours to reclaim. I am with you. Stay strong and we will win. ... I have told the military, police, and security forces: break from the regime. Honor the oath of any honorable serviceman. Join the people."
On 17 June, hackers reportedly hijacked the Iranian state broadcaster during a live broadcast, and broadcast messages critical of the government and footage from anti-government protests. The footage was mostly from the Mahsa Amini protests in 2022, and included the message "Rise up! This is your moment. Go out into the streets. Take control of your future."
On 20 June 2025, Maryam Rajavi, president-elect of the National Council of Resistance of Iran, spoke at a rally in Berlin: "No to appeasement and saving the mullahs’ regime, and no to war. There is a Third Option: regime change by the people of Iran and the Iranian resistance. Democratic change is the will of the Iranian people and the verdict of history.” Her guiding principle is "No to the Shah and no to the Mullahs".
On 23 June, two days after American strikes on Iranian nuclear sites, Reza Pahlavi self-declared himself a "servant of the people", held a bilingual press conference which detailed a plan for democratic transition. He announced that he was convening a summit of social, political, and business leaders ideologically diverse perspectives who can agree on the three principles:
Ensuring Iran's territorial integrity, Equal opportunity for all, Separation of religion and State.
He called on Ali Khamenei to step down with a promise of a fair trial, and also called on members of the Iranian security apparatus to abandon the Islamic Republic and initiate regime change.
Post-ceasefire Following the end of the conflict, there were intensifying demands domestically for economic and political change. This reformist push comes amid a deepening internal crisis in Iran, marked by public disillusionment, years of sanctions, mismanagement, and isolation have strained the economy, while widespread corruption and lack of accountability have eroded trust in the ruling system. Reformists see this moment as critical: either the Islamic Republic opens up politically and economically, or it risks further instability and collapse. The recent war with Israel, exposed the vulnerability of Iran's security and diplomatic isolation.
On 2 July, former president Hassan Rouhani publicly described the crisis, including the June 24 ceasefire, as a unique opportunity to "rebuild the foundations of governance". Rouhani stressed that national security requires not just military deterrence but also a "resilient economy, wise diplomacy, and mutual trust between state and society".
On 11 July, Mir-Hossein Mousavi, reformist leader who led the Iranian Green Movement in 2009, renewed his call for a referendum to establish a constitutional assembly, framing it as the only path to "save" Iran. He emphasized the war was born from grave political missteps and warned that public unity should not be mistaken for endorsement of the existing government.
Around 200 economists and former officials have publicly called for a "shift in the paradigm of governance", urging diplomacy with the U.S. and Europe, financial restructuring, and stronger anti-corruption measures. However, the conservative power structure, particularly the Islamic Revolutionary Guard Corps, shows no sign of yielding ground, and key reformist voices continue to face repression, including extended prison sentences for political dissidents. Activists and protesters claim they have remained quiet, fearful and confused by the war, expressing anger at both Iran and Israel.
Role of Israeli leadership On 13 June 2025, the day the Twelve-Day War broke out, Israeli Prime Minister Benjamin Netanyahu addressed the people of Iran: "The time has come for you to unite around your flag and your historic legacy by standing up for your freedom from an evil and oppressive regime" and that "this is your opportunity to stand up and let your voices be heard".
The Israeli Defense Forces Farsi language spokesperson claimed to have received messages from Iranians, including from individuals identifying themselves as members of Iranian security institutions. According to the spokesperson, these messages expressed opposition to the Iranian government. The spokesperson directed those seeking to contact Israel to use an external VPN and visit the Mossad's website. The same day, IDF announced that it had struck several military targets in Iran. They include the IRGC's Thar-Allah Headquarters, its Sayyid al-Shuhada Corps, the headquarters of the information security unit of Iran's internal security forces, the Basij headquarters, missile production and storage sites, and radars. Hundreds of IRGC fighters were killed in the attacks, according to an Israeli official. Other strikes hit the entrance of Evin Prison and the Palestine Square Countdown Clock, which had marked the Iranian government's countdown to the destruction of Israel and the "liberation of Palestine from the Zionists".
2025–2026 protests
In late 2025, mass protests erupted across Iran, driven by public anger over the deepening economic crisis. Initially led by bazaar merchants and shopkeepers in Tehran, the demonstrations quickly spread to universities and major cities such as Isfahan, Shiraz, and Mashhad, becoming the largest unrest since the 2022 Mahsa Amini protests. Security forces responded with measures such as tear gas. Over time, the movement expanded beyond economic demands to include calls for freedom and, in some cases, the overthrow of the Islamic Republic. Protesters chanted anti-government slogans such as "Death to the Dictator".
The six committee In September 2026 in his interview Pezeshkian revealed a new secretive unannounced council of six persons run the entire decision making in the country. Unofficially its membership reportedly includes since the 2026 warhttps://parsi.euronews.com/2026/09/28/iran-leadership-decision-making-structure-pezeshkian +Minister of ForeignAbas AaraghchiPresidentMasoud PezeshkianIslamic Cunsultative assembly chiefMohammadBagher GhalibafChief of SNSCMohsen RezaeiIRGC commander in chiefAhmad VahidiJoint chairman of joint Chiefs of armed forces staffAli Abdollahi
Government response Following the Twelve-Day War ceasefire in June 2025, the Iranian government began a broad campaign of internal repression. These measures, encompassing mass arrests, forced deportations, accelerated executions, expanded surveillance, and intensified restrictions on civilians, have been labeled by news outlets such as France 24, The Wall Street Journal and more, as indicative of heightened government paranoia and a perceived threat of domestic unrest or infiltration.
Despite the short duration of the war, the psychological and political impact on Iran was substantial, media using words such as "paranoia" and "unrest", highlighting the crisis. The Iranian government's limited ability to prevent or retaliate against the precision strikes, despite its claims of regional deterrence, shattered public confidence in its security doctrine. The war exacerbated existing socio-economic pressures and ignited widespread public anger, laying the foundation for the domestic crisis.