Iran's currency hits record low as US prepares to hit Tehran with economic offensive

Iran’s currency, which has recently been in free fall, hit an all-time low against the dollar, as the<a href="https://www.thenationalnews.com/news/mena/2026/08/24/live-iran-us-economic-war/" target="_blank" rel="" title="https://www.thenationalnews.com/news/mena/2026/08/24/live-iran-us-economic-war/"> US prepares to announce</a> crushing economic measures against Tehran on Monday. The <a href="https://are01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.thenationalnews.com%2Fbusiness%2Fmoney%2F2025%2F08%2F11%2Firan-approves-plan-to-remove-four-zeroes-from-national-currency%2F&data=05%7C02%7CANagraj%40thenationalnews.com%7C092ee8ac3b9944f88b0308de7a9d82dd%7Ce52b6fadc5234ad692ce73ed77e9b253%7C0%7C0%7C639083014111008880%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=M9E9zrVFBUihC3fBYBNnsiCbEnk4mSOyq6xC3dLIKIU%3D&reserved=0" target="_blank" rel="" title="https://www.thenationalnews.com/business/money/2025/08/11/iran-approves-plan-to-remove-four-zeroes-from-national-currency/">Iranian rial</a> was trading at about 2.02 million to the US dollar on the parallel market on Monday, according to Bonbast.com, which monitors unofficial exchange rates. That compares with 1.53 million rials to a dollar in early March, shortly after the war broke out. US Treasury Secretary Scott Bessent has threatened Iran with an “economic D-Day”, saying Washington is entering the end game in the conflict. The US is planning “the single greatest financial offensive ever marshalled against an adversary”, he wrote in an article published on Monday in the<i> Financial Times</i>. He is due to hold a press conference at 9pm UAE time. US President Donald Trump warned last week that countries aiding Iran would face economic implications. He did not name any specific nations. Iran's rial has been under pressure since the war broke out on February 28, as the country struggles under the weight of existing sanctions and dropping exports. Last week, the country's central bank chief said <a href="https://www.thenationalnews.com/mena/iran/" target="_blank" rel="" title="https://www.thenationalnews.com/mena/iran/">Iran</a> was exporting no oil, warning that access to foreign exchange reserves has become more difficult after being blocked by the US. “There is no doubt that we have restrictions on oil exports,” Abdolnaser Hemmati said on state television. The Central Bank of Iran governor said he had spoken to counterparts overseas and was told revenue from oil sales had “fallen to zero”. He added: “The same thing has happened to us and it is a reality that we are not exporting oil.” Iran is under growing economic pressure, with the war compounding inflation, currency weakness, energy shortages and sanctions, while damaging infrastructure and disrupting trade. The country's economy is expected to contract by 5.4 per cent this year, according to the July outlook from the International Monetary Fund. Inflation is projected at about 70 per cent for 2026.