Full story
Rial hits record low
Iran’s rial hit a record low Monday as Washington prepared to announce new sanctions it said would add further pressure on an economy already battered by previous sanctions and a U.S. naval blockade.
“The rial dropped to 2.02 million to the U.S. dollar”
The rial dropped to 2.02 million to the U.S. dollar as trading opened on currency markets, while Iran’s official Central Bank rate stood at around 1.5 million rial to the dollar.
The Associated Press reported that “The rial dropped to 2.02 million to the U.S. dollar,” and said the market rate is what most Iranians pay.
ABC News said the currency had repeatedly hit new lows as nearly six months of war took an even greater toll, with rice up some 60% and beef prices more than 150% higher.
Sanctions and threats
With diplomacy stalled over ending the war on Iran, Washington sought to ratchet up pressure on Tehran with “unprecedented” economic pressure, including threats to punish any country doing business with Tehran.
Al Jazeera quoted a Truth Social post in which Trump warned, “ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran will itself face TREMENDOUS Economic Consequences,” and said the administration framed the effort as “Operation Economic Fury.”
ABC News said the U.S. administration promised even stronger sanctions than those already in place would be announced Monday, including secondary sanctions on countries that continue to do business with Iran.
Iran’s Foreign Ministry spokesperson Esmail Baghaei told reporters in Tehran on Monday that “any escalation of this situation will undoubtedly bring about consequences,” while ABC News reported that “Our hands are not tied,” he added.
Markets brace, economy strains
Oil markets fell ahead of the sanctions announcement, with Brent crude dropping $1.22, or 1.29%, to $93.17 per barrel and West Texas Intermediate falling $1.20, or 1.38%, to $85.86.
“Brent crude dropped by $1.22, or 1.29%, to $93.17 per barrel”
Al Jazeera Net said investors locked in profits ahead of an anticipated U.S. announcement of further sanctions that could disrupt supplies from the Middle East, while also noting that Mnuchin threatened the “harshest penalties ever” on Iran.
ABC News linked the economic squeeze to shipping disruptions in the Strait of Hormuz, saying Iran’s attacks and threats on ships brought traffic in the vital waterway to a near halt and damaged the world economy.
In Tehran, 73-year-old Sadegh Mahmoudi joined a line of about a dozen people to purchase U.S. dollars with his remaining savings to hedge against further declines, telling reporters, “There is no hope for a deal and peace,” as the rial’s slide intensified.