Iran is currently grappling with a severe economic crisis, marked by a historic collapse of its national currency, the rial. The currency lost nearly half its value against the US dollar in 2025 and continued its rapid depreciation into January 2026, reaching unprecedented lows of approximately 1.4 to 1.5 million rials per US dollar on the open market. This drastic economic downturn has triggered widespread protests across major Iranian cities since late December 2025, primarily driven by currency losses, soaring prices, and business closures. The repercussions of Iran's currency crash are significantly impacting the pilgrimage industry in neighboring Iraq. Iraqi holy cities, particularly Najaf and Karbala, are major destinations for millions of Shi'ite Muslim pilgrims, with Iranians traditionally forming the largest proportion of foreign visitors. Local merchants and hoteliers in Najaf have reported a dramatic decline in the number of Iranian pilgrims. Daily arrivals, which stood at 3,000-3,500 in 2023, have plummeted to as few as 100-250 on some days. This sharp reduction has led to severe financial struggles for businesses, with reports indicating that around 100 hotels in Najaf have ceased operations since 2020, resulting in substantial job losses and increased unemployment. The extreme volatility of the Iranian currency makes pilgrimage trips to Iraq unpredictable and prohibitively expensive for many Iranians. A trip that might cost $200 one day could quickly rise to $220 the next, placing immense financial pressure on potential pilgrims. This situation echoes previous periods of Iranian currency depreciation, such as in 2012-2013, when Western sanctions similarly curtailed Iranian religious tourism to Iraq, highlighting a recurring vulnerability for Iraq's religious tourism sector. The current crisis underscores the deep economic interdependence between the two nations and the broad regional impact of Iran's internal economic challenges.