Iran’s national currency, the rial, has fallen to a record low of 1.8 million to the U.S. dollar, underscoring deepening economic strain even as a fragile ceasefire with the United States and Israel remains in place.
The currency had held relatively steady during the early phase of the conflict that began on February 28, largely due to limited trade activity and reduced imports. However, in recent days, the rial has sharply declined, reaching its lowest level on Wednesday.
Analysts warn that the continued depreciation of the rial is likely to accelerate inflation, particularly in a country heavily reliant on imports for essential goods such as food, medicine, and industrial materials. As the dollar strengthens against the local currency, the cost of these goods is expected to rise further.
Although hostilities have paused, a U.S. blockade continues to weigh heavily on Iran’s economy by restricting oil exports — a key source of government revenue and foreign exchange earnings.
The latest drop follows a similar currency shock earlier this year, when a rapid depreciation fueled public protests driven by rising living costs and economic uncertainty.
Iran has long struggled with sanctions, high inflation, and structural economic challenges. The recent conflict has intensified these pressures, affecting households, businesses, and employment levels.
Reports indicate that prices of basic commodities — including bread, rice, dairy products, and cooking oil — have surged in recent weeks, adding to the financial burden on citizens.
The labor market is also showing signs of distress. Local media report that over 1,000 workers in industrial sectors have lost their jobs since late March, raising concerns that more layoffs could follow as companies grapple with rising costs and weakened demand.
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