Iran's currency has weakened to an all-time low against the dollar amid US efforts to cripple the country's economy after almost six months of war.
US Treasury Secretary Scott Bessent is due to announce new US sanctions against Iran at a press conference scheduled for 1pm EDT, which is 6pm London time.
Rial trading at record low
The rial was trading at 1.992m per dollar on the unregulated market on Monday, according to Bloomberg News, which cited data from tracking website Bonbast – down 4.5% since Donald Trump announced a “crushing economic operation” against Tehran last week.
Another unofficial tracking site, TGJU, said the rial passed the 2m threshold on Sunday but closed lower.
US pressure on Iran's economy
The currency is under pressure from US efforts to isolate Iran by threatening the country's few remaining trade partners while blockading its main ports in the Persian Gulf and choking off oil exports.
Last week, Iran's central bank governor, Abdolnaser Hemmati, said its crude exports have “virtually stopped.” The United Arab Emirates, one of Tehran's main trading partners, said last week that it had suspended all financial transactions with Iran until further notice.
Warning of economic D-Day
Warning of an “economic D-Day,” Bessent wrote in the Financial Times today: “At dawn begins an economic D-Day — the single greatest financial offensive ever marshalled against an adversary. Our objective is to sever every economic lifeline that sustains the tyrannical regime until Tehran stands alone.”
Iran's top financial newspaper, Donya-e Eqtesad, said the currency's drop was driven by disruption to foreign-exchange transfers and declining exports alongside increased import demand and rising inflation expectations.
