Scattered Protests Erupt in Iran Over Economic Woes

President Hassan Rouhani of Iran in Parliament this month. Supporters hoped his re-election this year would lead to greater foreign investment in the country. Credit Vahid Salemi/Associated Press
Protests over the Iranian government’s handling of the economy spread to several cities on Friday, including Tehran, according to Iranian officials, in what appeared to be a sign of unrest.

President Hassan Rouhani began his second term in August after winning re-election on promises to revitalize an economy hurt by sanctions. Although foreign investment is rising, the country continues to survive mainly on oil sales. Youth unemployment stands at more than 40 percent, sluggish state-owned enterprises control significant sectors of the economy, and American sanctions prevent most international banks from providing financing or credit to Iran.

The protests began on Thursday in Mashhad, a city of two million in the country’s northeast, where hundreds gathered to denounce recent price increases and the moribund state of the economy more generally, according to Iranian news agencies. It was difficult to judge the size of the demonstrations and whether they were organized, and if so, by whom.

The city of Mashhad, which is relatively prosperous, is dominated by hard-liners, including supporters of Ibrahim Raesi, who lost to Mr. Rouhani in the May elections.