The Iranian rial has fallen to a new all-time low against the US dollar as sanctions and war damage cripple the economy.
The Iranian rial has reached a new all-time low against the US dollar, dropping past 2 million rials to $1 on the free market. This economic decline is driven by decades of US and international sanctions, particularly regarding Iran's nuclear programme, and has been further exacerbated by the US-Israel war on Iran launched on February 28. War damage and a US naval blockade of Iranian ports have disrupted production and complicated imports and exports. Consequently, the cost of essential goods has surged, with prices for tomatoes, chicken, and cooking oil increasing significantly. For many Iranian families, the falling rial and stagnant wages have reduced purchasing power, forcing many to cut back on non-essential items and limit their food intake. Retailers and workers alike report that rising costs for raw materials and daily necessities have made it difficult to maintain businesses and manage household budgets. While the war did not create Iran's economic problems, it has magnified existing pressures on the country's 92 million people.