Friday, January 9, 2026

Iran’s Theocracy: An Uneasy Fusion of Religion and Political Economy

As mass protests erupted in Iran during the second week of January, 2026, Iran’s theocracy was on edge. That the protests stemmed from the dire economic conditions facing the people amid staggering inflation, including on basic food staples, rather than from foreign affairs, raises the question of whether religious clergy, including the “supreme leader,” Ayatollah Ali Khamenei, are competent in making economic policy. Without the ongoing political pressure that can come from constituents in a representative democracy, or republic, it is no surprise that the protests in Iran quickly became mass riots. In other words, bad economic policy by religious clerics in power in an autocracy can easily result in popular protests abruptly erupting into rioting. The overreaching of functionaries based in the domain of religion into politics (including economic policy), such that the distinctiveness of the two domains is ignored or obfuscated, can be distinguished from the problems that go with autocracy.

On January 9, 2026, the theocracy signaled that the rioting would be dealt with severely. Iran’s judiciary chief, Gholamhossein Mohseni-Ejei, in assuming a non-judicial political role, “vowed that punishment for protesters ‘will be decisive, maximum and without any legal leniency.”[1] Separation of powers obviously did not exist in the Islamic regime. That both the internet and international calls were being blocked by the government signals that the protests could realistically result in the fall of the Islamic revolution in Iran. In other words, the severity of the government’s measures in shutting down communication can be read as indicative of a government whose days are numbered. In an interview, U.S. President Trump said that Iran’s dictator was already “looking to go someplace” because the situation on the streets was “getting very bad.”[2]

Demonstrating that expertise in theology does not extend to politics (as well as economics), Khamenei accused the rioters of “ruining their own streets . . . in order to please the president of the United States.”[3] Nothing was said about the hyperinflation that was putting even basic foodstuffs out of reach for an increasing number of people as the reason for the protests. Nothing was said about Crown Prince Reza Pahavi having called for the protests on January 8, 2025, and that the protests “included cries in support of the shah,” which can be distinguished from chants in favor of President Trump, which did not occur.[4] Pahavi was not calling for the United States to invade Iran. Ayatollah Ali Khamenei’s rhetoric was therefore very poor from a political standpoint (i.e., his statement was incorrect), and he did not address the reeling economy in any constructive way in terms of advocating economic reform that actually had a chance of working. Knowledge in theology does not carry over onto the domains of politics and economics, so the overreach is problematic.

This critique can be distinguished from one premised on the American separation of “church and state,” which actually could use some work in American jurisprudence because “In God We Trust” is printed on the currency. To be against a government establishing a religion (e.g., proclaiming a religion to be the official religion) is different than being against a religion superimposing its distinctive criteria onto a civic government because an over-reaching of the political domain into the religious domain is distinct from the religious domain overreaching into the political realm, even though both instantiate the conflation of two distinct domains of human experience. Ayatollah Ali Khamenei should have stuck to theology as a cleric rather than try to run a government, and his response to the economic protests—even that such protests morphed so quickly into riots—demonstrates the intractably problematic nature of overreaching from one domain onto another, qualitatively different, one as if the criteria and credentials of the former could and should supplant those of the latter in the latter.



1. Jon Gambrell, “Iran Supreme Leader Signals Upcoming Crackdown on Protesters ‘Ruining Their Own Streets’ for Trump,” APnews.com, January 9, 2026.
2. Ibid.
3. Ibid.
4. Ibid.