Iran’s currency hits record low as US moves to unveil new sanctions

Tehran: Iran’s currency plunged to a record low on the open market, hours before the US announcement of a new wave of sanctions aimed at further isolating Tehran.

The rial fell to 2.02 million on Monday (local time) against the US dollar as trading opened on currency markets, while the official exchange rate set by Iran’s Central Bank stood at around 1.5 million rials per dollar.

The currency, which was already under pressure before the joint US-Israeli attacks on February 28, has continued to hit new lows as nearly six months of conflict have placed further strain on Iran’s economy.

US Treasury Secretary Scott Bessent on Monday warned of an “economic D-Day” for Iran, announcing what he described as “an economic onslaught against Iran’s financial connections around the globe.”

The new sanctions target five key sectors — digital assets, technology, gold, aviation and shipping, according to the Treasury Department.

Iranian President Masoud Pezeshkian has said that the United States must change its tone and approach toward Iran.

“The US reliance on coercion and bullying will only complicate executive processes,” Pezeshkian said in Tehran on Monday (local time).

Pezeshkian stressed the need for the United States to remain committed to its obligations toward Iran “based on the (country’s) legitimate rights and international regulations.”

He expressed hope that the objectives stipulated in the US-Iran peace memorandum of understanding (MoU) would be achieved “with the continuation of the will and joint cooperation.”

Meanwhile, Foreign Ministry spokesman Esmaeil Baghaei said on Monday that Iran will not let the war end based on conditions set by the “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,” Baghaei told a weekly press conference in Tehran.

He said that Iran remained determined to defend its territory and would not “compromise with the aggressive parties” or surrender to their “excessive demands.”

Baghaei dismissed US claims that the Strait of Hormuz was open and that millions of barrels of oil were passing through it each day, describing them as part of “psychological and media warfare”.

IANS