Iran’s Currency Plunges to Record Low as U.S. Prepares Major New Sanctions Package

Iran’s rial fell to an unprecedented 2.02 million units per U.S. dollar Monday as informal currency markets opened, signaling mounting economic pressure ahead of announced American sanctions. The informal rate, which reflects what ordinary Iranians actually pay, far exceeds the Central Bank’s official rate of approximately 1.5 million rial to the dollar. U.S. officials characterized the incoming sanctions package as “economic D-Day,” designed to intensify economic hardship on a nation already reeling from previous restrictions and a naval blockade.

The currency’s deterioration accelerated following the U.S. and Israeli military operations against Iran on February 28, though underlying economic weaknesses—including double-digit inflation and negative growth—had already destabilized the rial. Nearly six months of regional warfare have compounded these pressures, driving the currency to successive record lows. Treasury Secretary Scott Bessent pledged in a Sunday Financial Times opinion piece that enhanced sanctions, including secondary measures targeting third-party nations conducting business with Iran, would be unveiled Monday.

A fundamental sticking point between Washington and Tehran centers on control of the Strait of Hormuz, a critical waterway through which one-fifth of globally traded oil historically flowed unimpeded. Iranian military actions have substantially disrupted this traffic since hostilities began. Reports indicate Iran and Oman are nearing finalization of a joint management arrangement that would split the strait’s operational control, with Iranian-directed entry routes and Omani-controlled exit passages.

President Trump has publicly threatened military strikes against Oman, a longstanding American ally, should it obstruct his administration’s objectives. Oman’s foreign minister was scheduled to travel to Iran on Tuesday for continued negotiations. The United Arab Emirates announced last week it was terminating all trade with Iran, a decision Trump reportedly influenced through direct contact with UAE leader Sheikh Mohammed bin Zayed Al Nahyan.

Iran’s hard-line Supreme National Security Council chief Mohsen Rezaei responded to the threatened sanctions by warning that any nation endorsing fresh American economic measures would be treated as an “act of war,” underscoring escalating rhetoric as tensions persist.