Finance · 24 August, 2026 · 3 min read
US Threatens Toughest Sanctions Yet as Iran’s Rial Hits Record Low
Iranian rial hits a historic low near 2.02 million per dollar ahead of sanctions. Treasury Secretary Bessent announces 'economic D-Day' sanctions expanding pressure on Tehran.
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Al Jazeera stresses ally-wide sanctions; An-Nahar stresses uncertainty over concrete targets.
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, with the rial dropping to 2.02 million to the U.S. dollar as trading opened on currency markets. The Associated Press said Iran’s official Central Bank rate stood at around 1.5 million rial to the dollar, but the market rate is what most Iranians pay.
““There is no hope for a deal and peace,” he said.”
The AP reported that rice is up some 60% since the war began and beef prices are more than 150% higher, while the International Monetary Fund forecasts GDP will contract more than 5%. 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, saying, “There is no hope for a deal and peace.”
Sanctions rhetoric and threats
U.S. Treasury Secretary Scott Bessent said the new measures would “collapse” the Iranian government, calling on countries to join the effort, after President Donald Trump threatened to punish any country doing business with Tehran.
Al Jazeera reported that 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 is seeking “unprecedented” economic pressure.
Iran’s Foreign Ministry spokesman Esmaeil Baghaei told reporters in Tehran on Monday that “any escalation of this situation will undoubtedly bring about consequences,” and said, “Our hands are not tied,” according to the Associated Press.
The Associated Press also reported that Iran’s response included refusing to fully reopen the Strait of Hormuz unless it can charge ships, as Iran and Oman were reportedly in the final stages of agreeing on a plan for joint management of the waterway.
Markets watch the Strait
Oil prices fell by more than a dollar per barrel in early trading Monday as investors moved to take profits ahead of a forthcoming U.S. announcement of new sanctions on Iran that could further disrupt Middle East supply, with Brent crude dropping by $1.22 to $93.17 per barrel and West Texas Intermediate falling $1.20 to $85.86.
Al Jazeera Net reported that the two benchmarks logged weekly gains for a second straight week last week, rising more than 5%, while talks between the United States and Iran remained at an impasse and constrained shipments via the Strait of Hormuz, which has historically carried about a fifth of global supply.
The Associated Press said Iran retains a key strategic advantage because its attacks and threats on ships in the Strait of Hormuz have brought traffic in the vital waterway to a near halt, damaging the world economy and heaping pressure on U.S. President Donald Trump ahead of congressional elections.
Bloomberg said Bessent is set to announce a new package of economic measures against Iran to isolate the Islamic Republic more effectively, and it quoted Bessent writing in the Financial Times that the objective is to “cut every economic thread that sustains the tyrannical regime until Tehran is left alone.”