Iran's Currency Crisis: Rial Hits Record Low of 1.2 Million to Dollar Amid Tightening Sanctions

Iran's economy continues to deteriorate under the weight of international sanctions.

Tehran:

Iran's rial plummeted Wednesday to an unprecedented rate of 1.2 million to the US dollar as nuclear sanctions continue to cripple Tehran's struggling economy.

Currency traders reported this new exchange rate amid stalled negotiations between the United States and Iran regarding the nuclear program.

This historic low is exacerbating food inflation, with increasing costs for essential items including meat, rice, and other Iranian dietary staples, making everyday living increasingly difficult for citizens.

Concurrently, public anxiety grows about potential new conflicts between Iran and Israel, possibly involving the United States, following the 12-day war in June.

"The economic situation will not only make daily life more challenging for ordinary citizens, but also raises concerns about whether the government can maintain and update the country's deteriorating infrastructure given the sanctions-limited foreign currency inflow," explained Ali Moshtagh, a 53-year-old electrical engineer.

International sanctions have devastated Iran's economy, particularly since US President Donald Trump unilaterally withdrew from the nuclear agreement with world powers in 2018. During the implementation of the 2015 deal, when Iran significantly reduced uranium enrichment and stockpiling in exchange for sanctions relief, the rial traded at 32,000 to the dollar.

Following Trump's return to the White House for his second term in January, he reinstated his "maximum pressure" campaign targeting Tehran with sanctions. His administration again targeted companies trading Iranian oil, including those selling at discounted rates to China.

In late September, the United Nations reimposed nuclear sanctions on Iran through what diplomats termed the "snapback" mechanism. These sanctions again freeze Iranian assets abroad, prohibit arms deals with Tehran, and penalize any advancement of Iran's ballistic missile program, among other measures.