Iran's Rial Hits Record Low Amid New U.S. Sanctions Preparations

Iran's national currency, the rial, plunged to a new record low on Monday as Washington prepared to unveil additional sanctions. These measures are intended to intensify pressure on an economy already weakened by previous sanctions and a U.S. naval blockade.

On currency markets, the rial traded at 2.02 million against the U.S. dollar when markets opened. While the official Central Bank rate stood around 1.5 million rials to the dollar, the market rate reflects the reality for most Iranians.

The currency had been under significant pressure even before recent escalations, with Iran facing double-digit inflation and negative economic growth. The rial has repeatedly set new lows, with nearly six months of conflict taking an escalating toll on the economy.

Daily necessities have become increasingly unaffordable for Iranians. Since the conflict began, the price of rice has surged by 60%, and beef prices have risen by over 150%. The International Monetary Fund forecasts a contraction of more than 5% in the country's gross domestic product.

Despite the economic hardship, political pressure has not yet materialized significantly. The U.S. announced its intention to impose further sanctions, including secondary sanctions on countries trading with Iran. A spokesperson for Iran's Foreign Ministry warned that any escalation would bring consequences.