Iran’s currency experienced a significant depreciation on Saturday, reaching a rate of 1,043,000 rials per US dollar, amid escalating global tensions. This decline in value follows the nation’s recent celebration of Nowruz, the Persian New Year, during which formal businesses were closed, leading to increased reliance on street trading and further strain on the market, as reported by the Associated Press.
Due to the uncertainty surrounding the rial’s value, many Iranian money exchanges and traders have opted to deactivate their electronic displays, as mentioned by the Associated Press.
The ongoing decline of Iran’s currency has been exacerbated by international sanctions and substantial pressure from the United States. Prior to this new low, the rial had already diminished significantly, losing nearly half its value since President Masoud Pezeshkian assumed office in July 2024, according to Reuters.
In early February, the U.S. administration, under President Donald Trump, reinstated maximum pressure on Iran, emphasizing efforts to prevent the Islamic Republic from acquiring nuclear weapons. This was formalized through the National Security Presidential Memorandum (NSPM) on Iran, which outlined strategies to counter Tehran’s influence abroad and block its nuclear ambitions.
Addressing the situation, Secretary Marco Rubio highlighted the destabilizing influence of Iran in the region during a news conference with Israeli Prime Minister Benjamin Netanyahu. Rubio pointed out that Iran is linked to several destabilizing activities and threats to regional peace, acknowledging the plight of the Iranian people under the regime’s control.
In alignment with its firm stance on Iran, the Trump administration has taken measures, including targeting a network facilitating Iranian crude oil shipments to China, as reported by the Treasury Department. The sales of Iranian oil have reportedly been used to fund groups like Hamas and Hezbollah. Back when Trump first imposed sanctions during his previous term, the exchange rate was approximately 55,000 rials per US dollar, according to Reuters.