DUBAI, Jan 3 (Reuters) - Iran's Supreme Leader Ayatollah Ali Khamenei vowed not to yield after U.S. President Donald Trump threatened to come to the aid of protesters, as rights groups reported a sharp rise in arrests following days of unrest sparked by soaring inflation.
Speaking in a recorded appearance on television on Saturday, Khamenei said the Islamic Republic "will not yield to the enemy" and said rioters should be "put in their place".
Rights groups say more than 10 people have been killed
and scores detained in demonstrations that have flared across Iran since Sunday as the collapsing rial currency hits an economy already undermined by sanctions.
ECONOMIC CRISIS
Authorities have attempted to maintain a dual approach to the unrest, saying protests over the economy are legitimate and will be met by dialogue, while meeting some demonstrations with tear gas amid violent street confrontations.
"The bazaaris were right. They are right to say they cannot do business in these conditions," said Khamenei, referring to market traders' concerns over the currency slide.
"We will speak with the protesters but talking to rioters is useless. Rioters should be put in their place," he added.
Reports of violence have centred on small cities in Iran's western provinces, where several people have been killed. Authorities have said two members of the security services had died and more than a dozen were injured in the unrest.
Hengaw, a Kurdish rights group, said late on Friday that it had identified 133 people arrested, an increase of 77 from the previous day.
Trump on Friday said the U.S. was "locked and loaded and ready to go" but did not specify what action it might take against Iran, where it carried out airstrikes last summer, joining an Israeli campaign targeting Iran's nuclear sites and military leaders.
The threat of action adds to the pressure on Iran's leaders as they navigate one of the most difficult periods in decades, with the sanctions-hit economy shrinking and the government struggling to provide water and electricity in some regions.
Iran has suffered a succession of major strategic blows to its regional position since the start of the war in Gaza in 2023 between its ally Hamas and Israel.
Israeli strikes hammered Iran's strongest regional partner Hezbollah. Tehran's close ally Bashar al-Assad was ousted in Syria. The Israeli and U.S. assault strikes on Iran set back the expensive atomic programme and killed senior military leaders, revealing extensive penetration of Tehran's upper echelons.
FLARING VIOLENCE
The protests are the biggest since mass nationwide demonstrations in late 2022 over the death in custody of Kurdish woman Mahsa Amini. This week's demonstrations have not matched those in scale, but still represent the toughest domestic test for authorities in three years.
Rights groups such as Hengaw and activists posting on social media reported continued protests and violence by security forces across Iran, while state-affiliated media reported what it called attacks on property by infiltrators "in the name of protest".
State television has reported arrests of people accused of manufacturing petrol bombs and home-made pistols.
Numerous social media posts overnight said there had been unrest in a number of cities and towns, as well as three districts of the capital Tehran.
Reuters could not immediately verify the reports by rights groups, state media or social media accounts.
(Reporting by Reuters Dubai Newsroom; Writing by Angus McDowall; Editing by Kirsten Donovan)
