Iran's rial hits record low amid U.S. sanctions

Iran's currency, the rial, plunged to a new record low on Monday, August 24, 2026, falling to approximately 2.02 million rials per U.S. dollar on informal markets as Washington prepared to announce a fresh round of sanctions. The drop marks a significant psychological breach, with the currency losing nearly 7% of its value in just one week and more than half its value compared to the same period last year.

The decline comes as U.S. Treasury Secretary Scott Bessent is set to unveil what he described as the toughest sanctions in history against Tehran. Bessent stated the measures would include secondary sanctions targeting countries and entities that continue to do business with Iran. The new pressure campaign aims to further isolate an economy already battered by nearly six months of conflict with the U.S. and Israel, a U.S. naval blockade, and previous rounds of sanctions.

The currency's freefall reflects a severe economic crisis. Iran's annual inflation rate has climbed to 61.4%, with food prices surging by over 128% year-on-year, placing immense strain on households. The gap between the official central bank rate of around 1.5 million rials per dollar and the open-market rate...