Rallies in Iran Against Fuel Prices Hikes

Limited demonstrations took place at several cities in Iran on Friday evening, the official IRNA news agency reported on Saturday.

The demonstrations came the day after the government announced an abruptly increase in fuel prices in the height of an economic crisis.

It is presented as a measure that would distribute profits to poor families in an oil country whose economy is facing US sanctions.

The Iranian economy is supposed to face a contraction of 9 percent. But what happened was that it immediately sparked pisions, especially on social media and among the political class. They are criticizing the timing of the measure months before the February legislative elections.

"Massive demonstrations took place in the central city of Sirjan," IRNA added. "People attacked a fuel depot in the city and tried to burn it, but police intervened to stop them."

The news agency also pointed out those sporadic protests took place in cities of Iran including Mashhad (north), Birjand (east) and Bandar Abbas (south), as well as in Ghashsarat, Ahvaz, Abadan, Khorramshahr and Mahshahr (southwest).

The protests were limited to disrupting traffic and the demonstrations had stopped by midnight.

In December 2018, Iran President Hassan Rouhani tried to increase fuel prices, but the Shura Council blocked the adoption of the resolution as the country was shaken by unprecedented demonstrations triggered by austerity measures.

Noteworthy, il futures gained nearly 2% on Friday as comments from a top US official raised optimism for a US-China trade deal, but worries about increasing crude supplies capped prices.