The basic conflict here as I understand it is that the powers-that-be have declared a traditional religious festival illegal because it conflicts with their view of Islamic law, and people have decided that they've had enough of that sort of restrictions. This has been a long time coming; anyone with a clue about mideast politics realizes that Iran is one of the most pro-America countries in the area if you discount its government. Time to stand back and watch democracy in action.
The fact that I'm not hearing about this all the time on CNN, though, is very bad. It's selective reporting like this that led to most Americans thinking there was an Iraqi connection to 9/11 and spending the last month getting angry at that Super Bowl business. Here's a perfect example of the best way for revolutions to take place... I hope. Meanwhile, most Americans think Iran is a bunch of mud huts.
It's exciting, isn't it?