Iran’s rial has fallen to a historic low on the country’s informal currency market, with the U.S. dollar climbing above 2 million rials for the first time as the economy faces intensifying sanctions, wartime disruption and soaring inflation.
The rial fell to about 2.02 million rials per U.S. dollar when informal-market trading opened Monday, according to the Associated Press.
Market-tracking data have put the rate around the 2-million-rial threshold, although rates can vary between trading channels.
The collapse comes as Washington prepares a new wave of economic measures against Tehran. U.S. Treasury Secretary Scott Bessent has described the campaign as an “economic D-Day”, saying Washington intends to sever the remaining financial and commercial lifelines supporting Iran.
Reuters reported that the United States is preparing sanctions targeting Iran’s trade partners and other entities that continue to facilitate its economy.
Iran’s currency has been under sustained pressure from exceptionally high inflation and the economic consequences of the conflict that began with U.S. and Israeli attacks on February 28.
Official figures indicate that Iran’s year-on-year inflation rate reached 87.9% in July, after hitting 88.6% in June. Food prices have risen even faster, intensifying the squeeze on household purchasing power.
