Iranian Rial Plunges to Record Low as US Readies Economic Offensive
Iran’s currency reached an all time low of 2.02 million rials to the US dollar on informal markets Monday.
The drop occurred as Washington prepared to announce new sanctions that Treasury Secretary Scott Bessent called an economic D Day. These measures aim to increase pressure on an economy already strained by earlier sanctions and a naval blockade. Among those measures, Reuters reports, is a plan to warn countries to cut ties with Iran or risk their businesses being cut off from the dollar-based financial system.
The conflict between the US, Israel and Iran began on February 28 and has lasted nearly six months. Inflation stands near 70 percent while the International Monetary Fund projects GDP will contract more than 5 percent.
Daily staples have grown far more expensive for ordinary Iranians. The official central bank rate remains around 1.5 million rials to the dollar but most people pay the market rate.
Bessent described the coming steps as the single greatest financial offensive ever marshalled against an adversary with secondary sanctions targeting remaining trade partners.
