Iran currency plunges to record low as US dollar breaks 2 million rials on open market

The Iranian rial plunged to a new open-market low on Sunday, with the US dollar surpassing 2 million rials on the open market as the country braces for additional American sanctions and diplomatic efforts with Washington remain stalled.

The US greenback traded above 200,000 tomans in Tehran’s free market, according to currency-tracking channels.

One toman equals 10 rials, putting the exchange rate above 2 million rials to the dollar for the first time, as per news agency Shafaq.

The rial had traded at about 1.865 million per dollar at the start of the previous week, meaning the dollar gained more than 7% against the Iranian currency in less than a week, according to market figures cited by regional news outlets.

The decline reflects demand for foreign currency and growing anxiety over further US economic pressure, including uncertainty surrounding Iranian oil exports, access to foreign-exchange reserves and financial transactions.

Iran’s free-market exchange rate is closely watched because official currency markets are heavily managed by the government and do not necessarily reflect the price businesses and households pay to obtain dollars.

The record low, also reported by Reuters, came after a 60-day window established under a June 17 memorandum between the United States and Iran expired without a broader agreement on Tehran’s nuclear program and sanctions relief.

The memorandum had envisioned a final accord that could have included sanctions relief, oil-export waivers and access to frozen Iranian funds.

Instead, US pressure has intensified.

The Trump administration has reimposed a naval blockade of Iranian ports and rescinded sanctions waivers related to Iranian oil, while officials have said additional measures are under consideration.

Iran has said it will keep the Strait of Hormuz closed until Washington lifts the blockade, removes oil sanctions and releases frozen Iranian assets.

A weaker rial raises the local-currency cost of imported goods, including food, medicines, industrial materials and capital equipment. It also can accelerate demand for dollars, gold and other assets viewed by Iranians as a hedge against inflation and further depreciation.

Iran’s government has signaled a possible fuel-price increase as it confronts rising costs and economic pressure. Food and other consumer prices already have been rising, raising concerns over the potential for renewed public discontent.

Reza Pahlavi, Iran’s exiled former crown prince, cited the exchange-rate milestone in a social-media post criticising the Islamic Republic’s economic record and calling on Iranians, including state employees, to weaken the government.

His comments reflected the political sensitivity of the currency’s collapse but did not independently establish the exchange-rate data.

Whether the rial can recover below the 2 million-per-dollar threshold will depend in part on Iran’s access to foreign currency, including oil revenue and frozen assets, as well as any change in the diplomatic confrontation with the United States.

Absent a credible path toward sanctions relief or a meaningful improvement in foreign-exchange inflows, the currency remains vulnerable to further losses.

The immediate focus is Washington’s expected sanctions announcement Monday and Tehran’s response.