Iranian rial falls to over 2 million per dollar amid looming U.S. sanctions
The Iranian rial hit a new record low of about 2.02 million to the U.S. dollar as the United States prepared to announce additional sanctions, while inflation and war-related disruptions continue to strain the economy.
Iran's currency reached a record low on Monday, trading at roughly 2.02 million rial per U.S. dollar, far below the official central-bank rate of about 1.5 million. The decline follows the United States' plan to impose new sanctions aimed at increasing pressure on an economy already weakened by previous measures and a naval blockade.
The rial's slide comes after months of conflict that have driven double-digit inflation and negative growth. Prices for basic goods have surged, with rice up about 60 % and beef more than 150 % since the war began. The International Monetary Fund projects a contraction of over 5 % in Iran's GDP.
Despite the economic strain, political pressure on Tehran remains limited. Iran continues to restrict traffic through the Strait of Hormuz, a key oil transit route, and is negotiating a joint management arrangement with Oman. Oman’s foreign minister is scheduled to visit Iran to discuss the plan.
The U.S. administration has signaled that the upcoming sanctions will include secondary measures targeting countries that maintain trade with Iran. In a social-media post, President Donald Trump claimed that Iran is "completely collapsing," while Treasury Secretary Scott Bessent wrote that the sanctions have severely weakened the rial and inflation.
The United Arab Emirates announced a suspension of all trade with Iran, affecting one of Tehran's largest trading partners. Iran's foreign-ministry spokesperson warned that any escalation would have consequences and affirmed that the government retains flexibility in its response.
A Tehran resident, 73-year-old Sadegh Mahmoudi, joined a line of people buying U.S. dollars to protect his savings, expressing doubt about a peace settlement.