Background

Iran Crisis: Rial Collapses To Record Low, Massive Cyberattack, And How Population Depends On VPNs

02/01/2026

During Iran's escalating unrest, browsing throught the internet, or scrolling through social media feed from inside the country reveal an unexpected motif amid the flood of exchange rate screenshots and grainy protest clips: Mount Damāvand, the majestic snow-capped volcano that dominates Tehran's skyline on rare clear days.

Photos and videos of its peak appear repeatedly, sometimes pristine against azure skies, other times blurred from a moving car. Observers abroad ask the same question: Why this mountain, now?

Damavand carries deep symbolic weight in Persian culture.

In ancient mythology, it is where the tyrant Zahhak was chained by the blacksmith Kaveh after a people's revolt against his cruelty. The story of a corrupt ruler demanding endless sacrifices until the oppressed rise up resonates strongly today. Sharing images of the mountain allows Iranians to evoke tyranny and resistance without directly naming names, a subtle yet powerful form of dissent amid heavy surveillance.

This symbolism has gained traction as protests, sparked by economic collapse, spread nationwide.

Mount Damāvand
Mount Damāvand (Persian: دماوند) is a dormant stratovolcano. At an elevation of 5,609 metres, it's the highest in Iran and Western Asia, the highest volcano in Asia, and the 3rd highest volcano in the Eastern Hemisphere. Damāvand has a special place in Persian mythology and folklore.

This happened after the national currency of Iran, the rial, has hit record lows in late December 2025, plunging to around 1.45 million IRR per USD in the black market, where most transactions occur, before settling near 1.35–1.36 million by early January 2026.

The official rate remains frozen at about 42,000 IRR per USD, but it's meaningless for many of its population's everyday life.

Hyperinflation, hitting 42-48% year-on-year, has driven food and essential prices up sharply, eroding wages and savings.

Businesses and merchants in the capital's Tehran Grand Bazaar and electronics markets have closed their shops starting December 28, 2025, triggering strikes that quickly drew students, workers, and residents into broader anti-regime demonstrations.

Mount Damāvand
Protesters march in Tehran, Iran, on December 29, 2025.

The unrest has spread to cities like Isfahan, Mashhad, Shiraz, and smaller towns such as Fasa in Fars province, where crowds attempted to storm government buildings, and Noorabad Mamasani, where clashes turned violent.

Chants of "Death to the dictator" and calls for Reza Pahlavi, the exiled crown prince, have echoed in streets and online.

At least six deaths have been reported in confrontations, with security forces using tear gas, live fire, and arrests.

Iran
On the second day of the protest, a lone Iranian blocks riot police motorbikes on Jomhuri Eslami Street in Tehran, echoing the iconic 'Tank Man' of Tiananmen Square: one person's courage against overwhelming state power.

Authorities declared unexpected holidays in many provinces, citing weather or energy concerns, but many see it as an effort to clear public spaces.

The regime's response mixes repression with limited concessions, offering dialogue on economic grievances while framing unrest as foreign-instigated.

Yet the protests have evolved from purely financial complaints into demands for fundamental change, uniting diverse groups: students, merchants, laborers, against the government.

Mount Damāvand
People wave Iran's national flag 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, January. 1, 2026.

Complicating the digital landscape, Iran repelled a massive cyberattack on December 28–29, 2025, considered one of the largest DDoS assaults on record, peaking at over 720 million packets per second from 125,000 sources from around the world.

Minister Sattar Hashemi described it as targeting telecom infrastructure: "On Sunday afternoon, the country witnessed one of the biggest and most extensive cyberattacks against its communications infrastructure. The attacks were launched from more than 120,000 different sources across the world and specifically targeted one of the country’s telecommunications service providers."

He added that preventive measures neutralized it:

"With the arrangements that had been made, the attack was completely thwarted and neutralized."

Behzad Akbari, head of the Telecommunications Infrastructure Company, confirmed:

"Last night, the infrastructure network identified and countered the largest DDoS attack in recent years in terms of packets per second, targeting one of the country’s operators."

The incident caused temporary slowdowns but no major outage.

Internet restrictions remain a key battleground.

Iran ranks among the world's most censored online environments, with blocks on major platforms and arrests for speech.

During unrest, targeted disruptions occur, mobile outages in hotspots, throttling to hinder coordination. Yet full blackouts are rare now, as they harm the economy. With over 73 million users (about 80% of the population), people adapt by shifting to apps like Telegram for updates and Instagram for sharing. VPNs are essential, with Minister Hashemi noting: "The fact that more than 80 percent of people rely on VPNs shows there is a real demand."

Usage spikes dramatically during crises, often over 700%, despite warnings about risks.

These tools amplify voices: urban youth post first, diaspora verifies footage, and clips circulate globally before returning stronger.

Iran
From no hijab to public celebration of Christmas Eve in Iran. According to estimates about 42% of the population are under 25 (including children and young adults),

The nation's selective throttling and intimidation aim to contain without total collapse, but Damavand's viral presence signals a shift, from quiet endurance to open judgment.

As one observer put it, the mountain, long hidden by smog, is visible again on clear days, much like the people's resolve emerging from years of suppression. The fight for narrative and access continues, with legitimacy hanging on who can sustain the shared story of resistance.