On Saturday, Iran’s currency, the rial, reached a new low, with the exchange rate at 1,043,000 rials per U.S. dollar, potentially declining further due to escalating global tensions. Following the celebration of Nowruz, the Persian New Year, Iran experienced market pressure as stores remained closed and only informal street trading was conducted, as reported by the Associated Press. The situation led Iranian money exchanges and traders to turn off their electronic signs amid the uncertainty regarding the rial’s value, the Associated Press added.
International sanctions, coupled with significant pressure from the United States, have heavily impacted Tehran’s economy. Prior to this new record low, the rial’s value had already decreased by nearly half since President Masoud Pezeshkian assumed office in July 2024, according to Reuters.
The White House, on February 4, announced that President Donald Trump reinstituted maximum pressure on Iran, primarily aimed at preventing the Islamic Republic from acquiring a nuclear weapon. The National Security Presidential Memorandum (NSPM) on Iran sought to counter Tehran’s international influence and impede its nuclear weapon development capabilities.
Secretary Marco Rubio addressed the threats posed by Iran when speaking to reporters in Israel, shortly after Trump signed the NSPM. He remarked on the situation, highlighting that the Iranian population suffers under the regime in Tehran. Rubio stated, “It is the single greatest source of instability in the region. Behind every terrorist group, behind every act of violence, behind every destabilizing activity, behind everything that threatens peace and stability for the millions of people who call this region home, is Iran,” during a joint news conference with Israeli Prime Minister Benjamin Netanyahu.
In addition to the NSPM, the Trump administration targeted a network involved in shipping millions of barrels of Iranian crude oil to China as part of its efforts to curb Iran’s economic activities. The Treasury Department explained that the proceeds from these oil sales were used to fund terrorist groups, including Hamas and Hezbollah.
According to Reuters, during Trump’s initial term in office, 55,000 rials was equivalent to one U.S. dollar, illustrating the substantial depreciation of the rial over time.
