Iran’s Rial Falls To 2.02 Million Per Dollar Amid Sanctions Threat

Iran’s rial fell to a new record low against the US dollar on Monday as Washington prepared to announce another round of sanctions aimed at increasing economic pressure on Tehran. The currency declined to about 2.02 million rial per dollar in informal markets when trading opened, while Iran’s official Central Bank rate stood near 1.5 million rial per dollar. The informal exchange rate is widely used by ordinary Iranians for transactions.

The latest decline comes as Iran’s economy faces mounting pressure from high inflation, weak growth and the impact of prolonged sanctions. The rial had already been losing value before the United States and Israel launched attacks on Iran on February 28. Nearly six months of war have added further strain to an economy already struggling with international restrictions and disruptions to trade.

Washington is preparing additional measures that US officials have indicated could be stronger than previous sanctions. US Treasury Secretary Scott Bessent described the planned action as part of a broader effort to intensify economic pressure on Iran, including possible secondary sanctions against countries that continue doing business with Tehran. The measures come as the US seeks concessions from Iran but has so far failed to resolve major disputes.

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The economic confrontation is also linked to tensions around the Strait of Hormuz, a critical global oil shipping route. Iranian attacks and threats during the conflict have disrupted traffic through the waterway, while Iran has maintained significant control over shipping access. Iran and Oman are reportedly discussing a plan for joint management of routes through the strait, with Oman’s foreign minister expected in Tehran for further talks.

The developments have also affected Iran’s regional trade relationships. The United Arab Emirates, one of Iran’s major trading partners and an important re-export and financial centre for Iranian businesses, announced last week that it was suspending trade with Iran. The move followed a telephone conversation between US President Donald Trump and UAE President Sheikh Mohammed bin Zayed Al Nahyan.

Iran has strongly opposed the prospect of additional American economic measures. Mohsen Rezaei, a hard-line member of Iran’s Supreme National Security Council, warned that countries supporting new US sanctions could face serious consequences. With further sanctions expected and tensions surrounding the Strait of Hormuz continuing, the rial’s latest fall highlights the growing economic pressure facing Iran.

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