Iran Rial Falls Over 2.5 Million Per Dollar: War, Sanctions Push Currency To New Low | Today’s news
Iran’s rial fell to a new record low on Tuesday, with traders in Tehran exchanging more than 2.5 million rials for one US dollar, as the economic impact of the ongoing war in the Middle East intensified.
The latest drop came just 27 days after the currency hit its previous record low of 2.2 million riyals per dollar on Sept. 2. According to The Associated Press, the rial has repeatedly hit new lows since the war began in February.
Iran’s economy was already under constant pressure from years of international sanctions. The situation worsened with new US sanctions and a naval blockade targeting Iran’s oil exports, limiting Tehran’s access to crucial foreign currency earnings.
Rial sinks as US pressure mounts
The currency’s latest plunge highlights growing economic pressure on Iran as the conflict continues. Washington has sought to use sanctions and restrictions on the sale of Iranian oil to limit the funds available to Tehran.
US officials have argued that the pressure is intended to weaken Iran’s ability to finance war and other activities.
US Secretary of State Marco Rubio said on Monday that Iran was headed for an economic “cataclysm”, arguing that sanctions and the blockade were preventing Tehran from accessing money from oil sales.
Rubio said the measures aim to prevent Iran from using those revenues to support military activities, weapons development and the development of its nuclear program.
The Trump administration says Iran’s economy cannot sustain the conflict indefinitely. President Donald Trump initially predicted the war would last just weeks, but recently suggested it could continue until the November US election.
Iran signals more serious negotiations on Hormuz
The economic deterioration comes as Tehran signals that indirect negotiations with Washington over the Strait of Hormuz may be gaining momentum.
Iranian Foreign Minister Abbas Araghchi said after meetings with Pakistani and Qatari mediators that “the current focus is only on the Strait of Hormuz.”
Araghchi said Qatari mediators are expected to approach Washington again and communicate the US response to Tehran.
“If there is an answer, the Qataris will tell us and based on that a decision will be made in Tehran,” he said.
US and Iranian officials have confirmed that mediators are working to broker a deal aimed at ending the fighting and reopening the strategic waterway, according to the AP.
Diplomatic efforts continue despite Trump’s rejection of an Iranian proposal that would have included reopening the strait within seven days in exchange for measures including lifting the US blockade, releasing frozen Iranian assets and lifting sanctions on Iranian oil sales.
The IRGC appeals directly to the Americans
Meanwhile, the Islamic Revolutionary Guard Corps sought to deliver its message directly to the American public.
IRGC spokesman General Hossein Mohebbi appealed to Americans to protest the war and pressure their government to end the conflict. He said Washington would eventually have to admit defeat and leave the region.
Mohebbi also accused the US of using Iran’s nuclear program as an excuse to target the country’s wealth.
His remarks come ahead of November’s US midterm elections, with the AP reporting that the war and higher gas prices have affected the political landscape in the United States.
Read also | Oil prices rose slightly on supply worries as Trump rejects Iran proposal
