Iran's Khamenei defends his embattled rule

Iran's Supreme Leader Ayatollah Ali Khamenei Khamenei, who has final say on all state matters, in his speech Saturday accused the U.S. of supporting recent protests in Iran sparked by price hikes and the slashing of subsidies by the government. Teachers for weeks also demonstrated in favor of better pay and working conditions.

Khamenei, 82, said Iran's enemies try to pit Iranian citizens "against the Islamic system" through psychological warfare, the internet and financial support.

Khamenei was speaking on the death anniversary of Ruhollah Khomeini, the founder of the Islamic Republic and one day after Iran’s exiled crown prince Reza Pahlavi called for unity to overthrow the clerical regime.

Iranian opposition and activists in the United States and Europe have become much more vocal and organized in recent years, partly because of rising dissent inside Iran and bloody government crackdowns.

Iranian security forces on Friday arrested a young man following an assault on a top provincial cleric in the central city of Isfahan, Iranian media reported.

The anti-government protests, reported in at least 40 cities and towns across Iran, 

started over economic matters but have turned political, with demonstrators chanting anti-government slogans and calling for the fall of the regime, social media videos posted by activists showed.

In early May, protests erupted across some of Iran's poorer cities after the government cut state subsidies on food, causing prices to shoot up by 300% for several flour-based staples. The price of other basic goods, like cooking oil and dairy products, also spiked.

The government has acknowledged the protests but said they were small gatherings. State media also described the protesters as "rioters and provocateurs" and said dozens were arrested.

Authorities have said that domestic unrest over food prices has been fomented by foreign "enemies," and the "rumors that they spread and lies they tell."

Some social media users inside Iran said that internet services have been disrupted but Iranian officials have denied the claim.

Analysts believe the protests won't necessarily bring down the Iranian regime, but the government's lack of adequate response may allow discontent to simmer.