On Saturday, Mohammad Shariatmadari, Iran's Minister of Industry, Mines and Commerce, announced the ban in order to counter the USA financial pressures against the Islamic republic.
A fresh wave of protests erupted in Iran over the weekend against the plunging value of the local currency and rising prices, in what some observers and analysts describe as the biggest protest in the capital Tehran since 2012, just before the previous sanctions on Iran were imposed.
A day before, merchants at the Aladdin and Charsou mobile phone shopping centers in central Tehran protested against the rapid depreciation of the rial by closing down their shops.
The first clash between the protesters and the police occurred near the Parliament building, where the security forces to disperse the crowd using tear gas.
Videos posted to social media showed protesters heckling those who refused to close, shouting in Farsi: "Coward!"
In what appears to be a stunning turn away from Iran's generally anti-Semitic stance, which is replete with chants of "Death to Israel" and "Death to America" - both long considered the "little Satan" and "great Satan" by the regime - Iranian protesters were chanting "Death to Palestine!".
The US administration, under President Donald Trump, has claimed that the Iranian nuclear deal has not resulted in peace and stability in the Middle East, and demanded that Iran reduce its presence in the region and stop ballistic missile development.
The Grand Bazaar was closed on Monday during the protests.
"Shopkeepers in Great Bazaar of Tehran, the heart of Iran's economy, have gone on strike, closing their shops in protest at the ongoing economic crisis", Reza Khaasteh tweeted from Tehran.
Tasnim later quoted the head of Iran's Chamber of Guilds, Ali Fazeli, as saying the situation at the bazaar was calm.
Fears about the impact of the United States sanctions that will start to be reinstated in August and possibly trigger the collapse of the nuclear deal has led to the rial falling to a record low against the dollar on the unofficial foreign exchange market.
State media in Iran did not immediately report the Grand Bazaar demonstration.
Some of the U.S. sanctions against Iran take effect after a 90-day "wind-down" period ending on August 6, and the rest, most notably on the petroleum sector, after a 180-day "wind-down" period ending on November 4.
There were also large-scale anti-government protests fuelled by Iran's economic problems in late December and early January.