DUBAI, United Arab Emirates (AP) — Widening protests in Iran sparked by the Islamic Republic's ailing economy are putting new pressure on its theocracy.
Tehran is still reeling from a 12-day war launched by Israel in June that saw the United States bomb nuclear sites in Iran. Economic pressure, which has intensified since September when the United Nations reimposed sanctions on the country over its atomic program, has put Iran's rial currency into a free fall, now trading at some 1.4 million to $1.
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FILE - An Iranian security official in protective clothing walks through part of the Uranium Conversion Facility just outside the Iranian city of Isfahan, on March 30, 2005. (AP Photo/Vahid Salemi, File)
FILE - A customer shops at a supermarket at a shopping mall in northern Tehran, on Sept. 28, 2025. (AP Photo/Vahid Salemi, File)
FILE - Current and pre-revolution Iranian banknotes are displayed by a street money exchanger at Ferdowsi square, Tehran's go-to venue for foreign currency exchange, in downtown Tehran, Iran, on Aug. 28, 2025. (AP Photo/Vahid Salemi, File)
FILE - People cross the Enqelab-e-Eslami (Islamic Revolution) street in Tehran, Iran, on Sept. 27, 2025. (AP Photo/Vahid Salemi, File)
FILE - Protesters march on a bridge in Tehran, Iran, on Dec. 29, 2025. (Fars News Agency via AP, File)
People wave national flags during a ceremony commemorating the death anniversary of the late commander of the Iran's Revolutionary Guard expeditionary Quds Force, Gen. Qassem Soleimani, who was killed in a U.S. drone attack in 2020 in Iraq, at the Imam Khomeini grand mosque in Tehran, Iran, Thursday, Jan. 1, 2026. (AP Photo/Vahid Salemi)
Meanwhile, Iran's self-described “Axis of Resistance” — a coalition of countries and militant groups backed by Tehran — has been decimated in the years since the start of the Israel-Hamas war in 2023.
A threat by U.S. President Donald Trump warning Iran that if Tehran “violently kills peaceful protesters” the U.S. “will come to their rescue," has taken on new meaning after American troops captured Venezuelan President Nicolás Maduro, a longtime ally of Tehran.
Here's what to know about the protests and the challenges facing Iran's government.
Demonstrations have reached over 220 locations in 26 of Iran’s 31 provinces, the U.S.-based Human Rights Activists News Agency reported early Monday. The death toll had reached at least 19 killed, it added, with more than 990 arrests. The group, which relies on an activist network inside of Iran for its reporting, has been accurate in past unrest.
Understanding the scale of the protests has been difficult. Iranian state media has provided little information about the demonstrations. Online videos offer only brief, shaky glimpses of people in the streets or the sound of gunfire. Journalists in general in Iran also face limits on reporting such as requiring permission to travel around the country, as well as the threat of harassment or arrest by authorities.
But the protests do not appear to be stopping, even after Supreme Leader Ayatollah Ali Khamenei on Saturday said “rioters must be put in their place.”
The collapse of the rial has led to a widening economic crisis in Iran. Prices are up on meat, rice and other staples of the Iranian dinner table. The nation has been struggling with an annual inflation rate of some 40%.
In December, Iran introduced a new pricing tier for its nationally subsidized gasoline, raising the price of some of the world’s cheapest gas and further pressuring the population. Tehran may seek steeper price increases in the future, as the government now will review prices every three months.
The protests began first with merchants in Tehran before spreading. While initially focused on economic issues, the demonstrations soon saw protesters chanting anti-government statements as well. Anger has been simmering over the years, particularly after the 2022 death of 22-year-old Mahsa Amini in police custody that triggered nationwide demonstrations.
Iran's “Axis of Resistance," which grew in prominence in the years after the 2003 U.S.-led invasion and subsequent occupation of Iraq, is reeling.
Israel has crushed Hamas in the devastating war in the Gaza Strip. Hezbollah, the Shiite militant group in Lebanon, has seen its top leadership killed by Israel and has been struggling since. A lightning offensive in December 2024 overthrew Iran’s longtime stalwart ally and client in Syria, President Bashar Assad, after years of war there. Yemen's Iranian-backed Houthi rebels also have been pounded by Israeli and U.S. airstrikes.
Now Venezuelan ally Maduro is in U.S. custody. Iran’s Foreign Ministry has condemned the “illegal U.S. attack against Venezuela." U.S. Defense Secretary Pete Hegseth likened the attack to the U.S. strikes in Iran last year, saying that “Maduro had his chance, just like Iran had their chance.”
China meanwhile has remained a major buyer of Iranian crude oil, but hasn't provided overt military support. Neither has Russia, which has relied on Iranian drones in its war on Ukraine.
Iran has insisted for decades that its nuclear program is peaceful. However, its officials have increasingly threatened to pursue a nuclear weapon. Iran had been enriching uranium to near weapons-grade levels prior to the U.S. attack in June, making it the only country in the world without a nuclear weapons program to do so.
Tehran also increasingly cut back its cooperation with the International Atomic Energy Agency, the U.N.'s nuclear watchdog, as tensions increased over its nuclear program in recent years. The IAEA's director-general has warned Iran could build as many as 10 nuclear bombs, should it decide to weaponize its program.
U.S. intelligence agencies have assessed that Iran has yet to begin a weapons program, but has “undertaken activities that better position it to produce a nuclear device, if it chooses to do so.”
Iran recently said it was no longer enriching uranium at any site in the country, trying to signal to the West that it remains open to potential negotiations over its atomic program to ease sanctions. But there's been no significant talks in the months since the June war.
Iran decades ago was one of the United States’ top allies in the Mideast under Shah Mohammad Reza Pahlavi, who purchased American military weapons and allowed CIA technicians to run secret listening posts monitoring the neighboring Soviet Union. The CIA fomented a 1953 coup that cemented the shah’s rule.
But in January 1979, the shah, fatally ill with cancer, fled Iran as mass demonstrations swelled against his rule. Then came the Islamic Revolution led by Ayatollah Ruhollah Khomeini, which created Iran’s theocratic government.
Later that year, university students overran the U.S. Embassy in Tehran, seeking the shah’s extradition and sparking the 444-day hostage crisis that saw diplomatic relations between Iran and the U.S. severed.
During the Iran-Iraq war of the 1980s, the U.S. backed Saddam Hussein. During that conflict, the U.S. launched a one-day assault that crippled Iran at sea as part of the so-called “Tanker War,” and later shot down an Iranian commercial airliner that the U.S. military said it mistook for a warplane.
Iran and the U.S. have seesawed between enmity and grudging diplomacy in the years since, and relations peaked with the 2015 nuclear deal, which saw Iran greatly limit its program in exchange for the lifting of sanctions. But Trump unilaterally withdrew America from the accord in 2018, sparking tensions in the Mideast that intensified after Hamas' Oct. 7, 2023, attack on Israel.
FILE - An Iranian security official in protective clothing walks through part of the Uranium Conversion Facility just outside the Iranian city of Isfahan, on March 30, 2005. (AP Photo/Vahid Salemi, File)
FILE - A customer shops at a supermarket at a shopping mall in northern Tehran, on Sept. 28, 2025. (AP Photo/Vahid Salemi, File)
FILE - Current and pre-revolution Iranian banknotes are displayed by a street money exchanger at Ferdowsi square, Tehran's go-to venue for foreign currency exchange, in downtown Tehran, Iran, on Aug. 28, 2025. (AP Photo/Vahid Salemi, File)
FILE - People cross the Enqelab-e-Eslami (Islamic Revolution) street in Tehran, Iran, on Sept. 27, 2025. (AP Photo/Vahid Salemi, File)
FILE - Protesters march on a bridge in Tehran, Iran, on Dec. 29, 2025. (Fars News Agency via AP, File)
People wave national flags during a ceremony commemorating the death anniversary of the late commander of the Iran's Revolutionary Guard expeditionary Quds Force, Gen. Qassem Soleimani, who was killed in a U.S. drone attack in 2020 in Iraq, at the Imam Khomeini grand mosque in Tehran, Iran, Thursday, Jan. 1, 2026. (AP Photo/Vahid Salemi)
President Donald Trump's plan to take control of Venezuela's oil industry and ask American companies to revitalize it after capturing President Nicolás Maduro in a raid isn't likely to have a significant immediate impact on oil prices.
Venezuela's oil industry is in disrepair after years of neglect and international sanctions, so it could take years and major investments before production can increase dramatically. But some analysts are optimistic that Venezuela could double or triple its current output of about 1.1 million barrels of oil a day to return to historic levels fairly quickly.
“While many are reporting Venezuela’s oil infrastructure was unharmed by U.S. military actions, it has been decaying for many many years and will take time to rebuild,” said Patrick De Haan, who is the lead petroleum analyst at gasoline price tracker GasBuddy.
American oil companies will want a stable regime in the country before they are willing to invest heavily, and the political picture remained uncertain Saturday with Trump saying that the United States is in charge — while the current Venezuelan vice president argued, before Venezuela’s high court ordered her to assume the role of interim president, that Maduro should be restored to power.
“But if it seems like the U.S. is successful in running the country for the next 24 hours, I would say there would be a lot of optimism that U.S. energy companies could come in and revitalize the Venezuelan oil industry fairly quickly,” said Phil Flynn, a senior market analyst at the Price Futures Group.
And if Venezuela can grow into an oil production powerhouse, Flynn said “that could cement lower prices for the longer term” and put more pressure on Russia.
Speaking to reporters on Air Force One on Sunday, Trump said oil companies are “going to go in and rebuild this system.”
The price of U.S. crude oil was up less than a percentage point Sunday to $57.39 per barrel at 7:45 p.m EST. A major shift in oil prices wasn't expected because Venezuela is a member of OPEC, so its production is already accounted for there. And there is currently a surplus of oil on the global market.
Venezuela is known to have the world's largest proven crude oil reserves of approximately 303 billion barrels, according to the U.S. Energy Information Administration. That accounts for roughly 17% of all global oil reserves.
So international oil companies have reason to be interested in Venezuela. Exxon Mobil didn’t immediately respond to a request for comment Saturday. ConocoPhillips spokesperson Dennis Nuss said by email that the company “is monitoring developments in Venezuela and their potential implications for global energy supply and stability. It would be premature to speculate on any future business activities or investments.”
Chevron is the only one with significant operations in Venezuela, where it produces about 250,000 barrels a day. Chevron, which first invested in Venezuela in the 1920s, does business in the country through joint ventures with the state-owned company Petróleos de Venezuela S.A., commonly known as PDVSA.
“Chevron remains focused on the safety and wellbeing of our employees, as well as the integrity of our assets. We continue to operate in full compliance with all relevant laws and regulations,” Chevron spokesman Bill Turenne said.
But even with those massive reserves, Venezuela has been producing less than 1% of the world's crude oil supply. Corruption, mismanagement and U.S. economic sanctions saw production steadily decline from the 3.5 million barrels per day pumped in 1999 to today's levels.
The problem isn't finding the oil. It's a question of the political environment and whether companies can count on the government to live up to their contracts. Back in 2007, then President Hugo Chávez nationalized much of the oil production and forced major players like ExxonMobil and ConocoPhillips out.
“The issue is not just that the infrastructure is in bad shape, but it’s mostly about how do you get foreign companies to start pouring money in before they have a clear perspective on the political stability, the contract situation and the like,” said Francisco Monaldi, who is the director of the Latin American energy program at Rice University.
But the infrastructure does need significant investment.
“The estimate is that in order for Venezuela to increase from one million barrels per day — that is what it produces today — to four million barrels, it will take about a decade and about a hundred billion dollars of investment,” Monaldi said.
Venezuela produces the kind of heavy crude oil that's needed for diesel fuel, asphalt and other fuels for heavy equipment. Diesel is in short supply around the world because of the sanctions on oil from Venezuela and Russia and because America's lighter crude oil can't easily replace it.
Years ago, American refineries on the Gulf Coast were optimized to handle that kind of heavy crude at a time when U.S. oil production was falling and Venezuelan and Mexican crude was plentiful. So refineries would love to have more access to Venezuela's crude because it would help them operate more efficiently, and it tends to be a little cheaper.
Boosting Venezuelan production could also make it easier to put pressure on Russia because Europe and the rest of the world could get more of the diesel and heavy oil they need from Venezuela and stop buying from Russia.
“There’s been a big benefit for Russia to see Venezuela’s oil industry collapse. And the reason is because they were a competitor on the global stage for that oil market,” Flynn said.
But Matthew Waxman, a Columbia University law professor who was a national security official in the George W. Bush administration, said seizing control of Venezuela’s resources opens up additional legal issues.
“For example, a big issue will be who really owns Venezuela’s oil?” Waxman wrote in an email. “An occupying military power can’t enrich itself by taking another state’s resources, but the Trump administration will probably claim that the Venezuelan government never rightfully held them.”
But Waxman, who served in the State and Defense departments and on the National Security Council under Bush, noted that “we’ve seen the administration talk very dismissively about international law when it comes to Venezuela.”
Associated Press writers Matt O'Brien, Ben Finley, Darlene Superville and Rio Yamat contributed to this report.
Evana, an oil tanker, is docked at El Palito port in Puerto Cabello, Venezuela, Sunday, Dec. 21, 2025. (AP Photo/Matias Delacroix)
Vehicles drive past the El Palito refinery in Puerto Cabello, Venezuela, Sunday, Dec. 21, 2025. (AP Photo/Matias Delacroix)