Iranian Rial Hits Record Low as US Prepares New Sanctions

The Iranian rial hit a record low of 2.02 million to the U.S. dollar on Monday, August 24, 2026, as trading opened on currency markets. The decline comes as the Trump administration prepares to announce new, tougher sanctions, including secondary sanctions on countries that continue to do business with Iran. U.S. Treasury Secretary Scott Bessent wrote in an opinion piece for the Financial Times that the Trump administration has decimated Iran’s economy to a point where the rial has never been weaker.

Iran’s economy was already struggling with double-digit inflation and negative growth prior to the February 28 attacks by the U.S. and Israel, but six months of conflict have significantly exacerbated these pressures. According to the Associated Press, the price of staples has surged, with rice up by approximately 60% and beef prices rising by over 150%. The International Monetary Fund forecasts a GDP contraction of more than 5%.

Meanwhile, the conflict has devolved into a struggle for control over the Strait of Hormuz. Iran, which has refused to fully reopen the vital waterway, is reportedly in final talks with Oman regarding a plan for joint management. Last week, the United Arab Emirates announced it was suspending all trade with Iran.

Iranian Foreign Ministry spokesperson Esmail Baghaei warned on Monday that any escalation of the situation would undoubtedly bring consequences, adding that Iran’s hands are not tied. Simultaneously, a high-level delegation from Pakistan arrived in Tehran to discuss ending the war. Despite these diplomatic efforts, many residents in Tehran expressed little hope for a resolution or peace.