West Asia Conflict / Iran Currency ‘Rial’ Crashes as US Launches New Sanctions

Tehran, Aug 25: Iran’s currency collapsed to an unprecedented low on the open market Monday, just hours before Washington unveiled a new round of sanctions aimed at tightening economic pressure on Tehran.

At the start of trading, the rial plunged to 2.02 million against the US dollar, marking its weakest level ever. In contrast, the official exchange rate set by Iran’s Central Bank remained at approximately 1.5 million rials per dollar.

The currency had already been sliding in the wake of the joint US‑Israeli attacks on February 28, and nearly six months of conflict have further strained Iran’s economy.

Also read: Iran to Charge Fees for Strait of Hormuz Services; Vessels Violating Protocols to Face Restrictions

US Treasury Secretary Scott Bessent warned of an “economic D‑Day” for Iran, unveiling what he called “an economic onslaught against Iran’s financial connections around the globe.” The new sanctions target five critical sectors: digital assets, technology, gold, aviation, and shipping.

Iranian President Masoud Pezeshkian responded by urging Washington to change its approach. “The US reliance on coercion and bullying will only complicate executive processes,” he said in Tehran.

He emphasized that the United States must honour its obligations toward Iran “based on the (country’s) legitimate rights and international regulations.” Pezeshkian expressed hope that objectives outlined in the US‑Iran peace memorandum of understanding could be achieved “with the continuation of the will and joint cooperation.”

Foreign Ministry spokesman Esmaeil Baghaei struck a defiant tone, declaring that Iran would not accept conditions imposed by “aggressive” parties.

“We have definitely not been the party to start the war, but we will not let the war’s end be based on the aggressive parties’ conditions,” he said. Baghaei insisted Iran would defend its territory and “not compromise with the aggressive parties” or surrender to “excessive demands.”

He also dismissed US claims that the Strait of Hormuz remained open and that millions of barrels of oil were passing through daily, calling them part of “psychological and media warfare.”

(IANS)