Iran's purchasing power is slowly collapsing under US economic pressure

At a Tehran market, August 24, 2026. AFP On Monday, August 24, just hours before the announcement of new US sanctions, long lines formed at gas stations across Tehran. Some, especially those on Ferdowsi Square in the city center, had to declare that they had run out of fuel. "It is mainly panic," said one engineer, who, like others quoted, preferred to remain anonymous. On the black market for foreign exchange, now one of the main barometers of economic anxiety in Iran, both the dollar and gold hit new record highs. The rial, Iran's currency, and the toman, a unit still used in daily transactions, continue to depreciate: the dollar crossed the symbolic threshold of 200,000 tomans to one dollar. A few hours later, the United States unveiled a plan to expand secondary sanctions against companies and countries still trading with Iran. From Tehran, Economy Minister Ali Madanizadeh sought to reassure the public. "It is not so simple to claim that one can completely sever Iran's financial and commercial arteries," he said in an interview with state television. He also insisted that "the government has long been preparing for such a situation" and that it has "a two-year plan" to deal with these developments. You have 76.43% of this article left to read. The rest is for subscribers only.