Full story
Rial Hits Record Low
Iran’s rial plunged to a new historic low as the United States prepared to implement new sanctions, with the currency trading at 2.02 million rials per dollar in the informal market at the start of the session.
“The rial traded at 2.02 million per dollar in the informal market”
CNN reported that Treasury Secretary Scott Bessent was expected to reveal details of the administration’s sanctions plans later on Monday, as the US moved to tighten economic pressure on Tehran.
In the same reporting, Bessent warned in a Financial Times op-ed that an “economic D-Day is coming for Iran,” framing the move as a major financial offensive.
The pressure is playing out alongside the conflict that began on February 28, with the Strait of Hormuz described as a key route and Oman’s Foreign Minister scheduled to travel to Iran for talks.
Reuters and other outlets cited the Central Bank of Iran’s official rate as remaining around 1.5 million rials per dollar, while most Iranians were forced to operate in the informal market due to currency shortages.
Threats and Negotiations
As sanctions pressure builds, CNN said there were “growing differences within Iran’s leadership” over how to handle the conflict with the US, after President Masoud Pezeshkian said Iran “cannot continue with war forever.”
The Strait of Hormuz remained central to the economic fight, with CNN reporting that Iran’s state-controlled Persian Gulf Strait Authority (PGSA) warned ships violating transit rules could face penalties including detention or confiscation.
Bessent’s threats extended beyond Iran itself, with Cadena 3 Argentina saying he pledged that even stricter sanctions would be announced, including secondary measures against countries that continue to do business with Iran.
In parallel, the United Arab Emirates government announced the suspension of all commercial activity with Iran after a communication between Trump and Sheikh Mohammed bin Zayed Al Nahyan, according to Cadena 3 Argentina.
Al Jazeera’s coverage of the broader regional picture was echoed by the reporting that Oman’s Foreign Minister was scheduled to travel to Iran to continue talks, as the US prepared its next sanctions step.
Markets and Daily Hardship
The currency slide is being tied to mounting economic strain, with Newsweek saying the further collapse of the rial would add to an inflationary spike that was squeezing households tighter than ever.
““We saw revolution, war, sanctions, rising prices and hardship,””
Iran International reported that Iranians described deepening financial hardship as the dollar hit a historic 2 million rials on the open market, with one person telling the outlet, “We saw revolution, war, sanctions, rising prices and hardship.”
In the same account, Iran International quoted another respondent warning that “The tip of the sanctions spear is aimed directly at the people; healthcare, nutrition, education and sports are all at risk.”
Financial pressure is also spilling into markets, where ClickOnDetroit reported that oil prices declined on Monday as Iran’s currency hit a record low and uncertainty about when the war would allow oil tankers to exit the Persian Gulf roiled markets.
For policymakers, the stakes are framed as whether economic pressure can translate into change, with Iran International describing Abdolnasser Hemmati saying “Some thought hyperinflation would happen,” and adding that “For now, it has not.”