Iranian Rial Hits Record Low as Sanctions and Trade Disruptions Deepen Economic Crisis
The currency has lost roughly 60 to 63 percent of its value since March, reflecting mounting pressure on Iran’s economy amid intensified sanctions, disrupted oil exports and growing financial isolation.
ERBIL (Kurdistan24) – The Iranian rial has plunged to an unprecedented low on the open market, with the US dollar surpassing the 2.1 million to 2.2 million rial range, equivalent to around 220,000 Iranian tomans.
The currency has lost roughly 60 to 63 percent of its value since March, reflecting mounting pressure on Iran’s economy amid intensified sanctions, disrupted oil exports and growing financial isolation.
The sharp depreciation follows the US administration’s latest sanctions campaign, dubbed “Operation Economic Outcast,” which targets Iran’s remaining financial channels, shipping sector and international oil buyers. US Treasury Secretary Scott Bessent has warned countries including China, Turkey and the United Arab Emirates against helping Iran circumvent the measures.
Iran’s economy has also been hit by disruptions to crude oil exports amid a continuing US naval blockade in the Persian Gulf. Regional conflicts and military strikes earlier this year reportedly damaged major petrochemical and steel facilities, further reducing Iran’s non-oil export revenues.
The financial pressure has been compounded by restrictions involving the UAE, one of Iran’s main commercial and financial corridors. The suspension of financial transactions with Iran has further complicated cross-border payments and access to foreign currency.
The rial’s latest collapse is expected to intensify inflationary pressures and raise the cost of imported goods, adding to the economic difficulties facing Iranian households and businesses.