Iran’s rial currency hits new record low as US prepares to announce more sanctions

Iran's rial currency reached a new record low on Monday as the United States prepared to announce further sanctions, described as an "economic D-Day" by officials. The value of the rial plummeted to 2.02 million against the U.S. dollar on informal currency markets, while the official Central Bank rate was 1.5 million rials per dollar.

The informal rate is what most Iranians use. The currency had been under pressure following the U.S. and Israel's attack on Iran on February 28, 2022, exacerbated by double-digit inflation and negative growth. Despite this, the U.S. has struggled to secure concessions from Iran, which maintains control over the Strait of Hormuz, a vital waterway for global oil trade.

Iranian attacks and threats have further disrupted shipping through the strait. Iran and Oman are reportedly close to finalizing a plan for joint management of the waterway, which would involve ships entering the Persian Gulf via an Iranian-controlled route and exiting through one controlled by Oman. However, President Donald Trump has been highly critical of Oman, an American ally, threatening military action if they impede the U.S. efforts. Oman's foreign minister is set to visit Iran on Tuesday for further discussions.