Iranian Rial Hits Record Low, $1 Equals 2 Million Rials

Iran’s currency, the rial, has fallen to a record low against the US dollar amid the ongoing conflict with the United States and fears of new sanctions. On Sunday (August 23), one US dollar traded for around 2 million Iranian rials in the local market.

The sharp fall came a day before the United States was set to impose new sanctions on Tehran. US Treasury Secretary Scott Bessent described the measures as the “toughest sanctions in history.”

Iran was already facing a severe economic crisis, and the continued decline of the rial is adding to the pressure on the country. Since the US and Israel began attacks on February 28, several parts of Iran’s infrastructure have been damaged.

Meanwhile, Iran has been restricting the movement of unauthorized oil tankers through the Strait of Hormuz. The disruption has affected shipping through the key waterway and contributed to a sharp rise in global oil prices.