Iran’s Currency Hits Record Low Against US Dollar Amid Sanctions and Blockade

Iran’s currency, the rial, has fallen to its weakest point ever against the US dollar. This drop is happening because of economic pressure from US sanctions, a naval blockade, and ongoing conflicts. Today, the rial dropped to about 1.8 million per dollar in the open market, which is much lower than last year’s rate of around 811,000. After being stable for a few weeks during the conflict, it has now started to fall again.

The US has increased pressure by setting up a naval blockade earlier this month. This came after Iran restricted ships passing through the Strait of Hormuz, an important oil route. Because of this, maritime traffic has decreased, disrupting trade with key partners like China and the UAE.

While the official exchange rate is about 42,000 rials to a dollar, there are multiple unofficial rates on the market that show a much weaker value. The bigger gap between these rates shows Iran’s economic struggles due to sanctions, budget deficits, and limited access to foreign currency.

The long-term weakening of the rial has caused widespread economic problems in Iran. Earlier crashes in late 2025 led to large protests, which were later stopped. With no lasting agreement after an April ceasefire, uncertainty continues to affect Iran’s financial future.