Iran's currency hits record low as US prepares to hit Tehran with economic offensive

The Iranian rial experienced its lowest point against the US dollar as the United States prepares to impose severe economic sanctions on Tehran on Monday. The rial was trading at approximately 2.02 million to the dollar on the black market, compared to 1.53 million rials in early March when the war began. US Treasury Secretary Scott Bessent warned Iran of an "economic D-Day," stating that the United States is entering the final phase of the conflict.

He detailed in a Financial Times article that Washington is launching its most significant financial offensive against any adversary. Bessent is scheduled to deliver a press conference at 9pm UAE time.

The US President, Donald Trump, had previously cautioned that countries supporting Iran would face economic consequences, though he did not specify any nations. Since the outbreak of the war on February 28, Iran's currency has been under severe strain due to existing sanctions and declining exports. The country's central bank chief, Abdolnaser Hemmati, confirmed that Iran is not exporting any oil, adding that access to foreign exchange reserves has become increasingly difficult due to US restrictions.

Hemmati stated that oil sales revenue has effectively fallen to zero. Hemmati revealed that he has spoken to foreign counterparts, who informed him about the diminished oil export revenue. He emphasized the reality of zero oil exports.

Iran is grappling with a multitude of economic challenges exacerbated by the war, including inflation, weakening currency, energy shortages, and sanctions, which have further damaged infrastructure and disrupted trade. The International Monetary Fund's July forecast predicts a 5.4% contraction for Iran's economy in 2025, with inflation projected at around 70% for that year.