India, Dec. 31 -- Iran's moderate government, led by President Masoud Pezeshkian, has called for dialogue with protest leaders after the country's largest demonstrations in three years over a plunging currency and declining living conditions as crippling Western sanctions bite following a 12-day US-Israel war this year.

Protests started on Sunday after Iran's currency fell to a record low against the US dollar, causing some traders and shopkeepers to close their stores in downtown Tehran. This was accompanied by sporadic protests in the capital as well as in a few cities, including Isfahan, Shiraz and Mashhad.

Videos circulating on social media showed protesters chanting anti-government slogans.

The protests were the largest since prot...